What is the Pension Fund?
- The pension fund is a compulsory Swiss social security system aiming at allowing a certain life standard even after retirement. It completes the basic subsistence of the old age and survivors insurance OASI.
- From the age of 18 and a gross income of currently 19’890.- CHF, all employees have to pay obligatory contributions to the pension fund.
- These contributions are deducted automatically from the salary (5.05% of your gross salary). They consist of the personal capital payment and a risk payment. Employers have to pay at least half of the contributions. When an employee changes jobs, the saved money is transferred to the pension insurance of the new employer.
- Insurance contribution gaps arise if a person in part-time gainful employment does not earn the minimum required annual wages or if a person was older when s/he started work and has not worked for the complete insurance period.
When do you get the money?
- The paid-in amounts are reserved for old-age pensions. You get the benefits (e.g. pensions) on retirement or in the event of disability. In the event of your death, your family members receive survivors’ pensions.
- The accumulated contributions from employers and employees (capital payment) can also be paid out in the case of definitive emigration to a non-EU/EFTA country, becoming self-employed or purchasing a home.
What happens if you change work?
You have to give the address of the occupational benefit institution of your new employer to your previous employer’s occupational benefit institution (you will receive this address from your new employer) so that the accumulated capital (termination benefit) may be transferred.
What happens when you leave Switzerland?
- The vorsorgeforum provides all important information about pension funds.
- The LOB guarantee fund provides all important information about the agreements with EU and EFTA member countries concerning the occupational benefits.
- The foundation BVG also provides some useful information about pension funds.
- The Federal Social Insurance Office (FSIO) provides general information about the Swiss social insurances incl. pension fund.