Prepare for the future with individual and occupational pension provisions that are simple and flexible
All the pension provisions and peace of mind
- Whether you are a start-up, an SBE or a large corporation, you must fulfil your obligations towards the LPP. We are by your side to explore the best models of occupational pension provisions.
- As individuals or independents, you may wish to add to your savings by subscribing to a Pillar 3. Depending on your life projects, we can offer you a range of products for individual pension provisions.
- You wish to entrust the management of your pension fund to experts. Our specialists can intervene in all the areas that management requires, with transparency and independence.
Frequently asked questions about occupational pension provisions
- What is the legal age for retirement?
Since 2005, the law on occupational pension provisions (LPP) specifies that men have the right to pension benefits as soon as they reach the age of 65 and women as soon as they reach the age of 64.
- What is included in Pillar 1?
Pillar 1 includes the AVS (Old age and survivors’ pension), the AI (disability insurance) and the APG (allowance for loss of earnings in the case of military or civil service and maternity).
- What is an occupational pension fund?
The occupational pension fund or Pillar 2 completes the AVS/AI/PC or Pillar 1. Together, the two insurances should allow those insured to maintain their previous standard of living to a great extent. The goal is to reach approximately 60% of the last salary when adding the two pensions together. (Definition provided by OFAS)
- May part of the Pillar 2 capital be used before retirement?
It is possible to use part of the capital to purchase a primary residence. Take note however: these funds cannot be used to purchase a vacation home.You may also use this capital if you start your own business and are therefore no longer mandatorily insured under the LPP. Finally, if you leave Switzerland you may recover your capital. In all these cases, you should contact your pension institution.
- Can I withdraw the capital instead of an old age pension?
Active insured persons may take all of a part of their capital instead of an old age pension when they reach retirement age. The pension fund must be informed of this decision within the time limits specified.
- How can I know the amount of the contributions?
The amount of the monthly contributions to be paid to the pension fund is shown on the personal pension provision certificate. You will receive an updated certificate at least once a year stating the amount of the contributions and the benefits.
- If I have not always been insured with a pension fund, is it possible to fill in the gaps?
It is possible to fill in the gaps by repurchasing the missing time from the pension fund. The amounts repurchased give rise to a tax exemption. To determine the maximum repurchase amount, you should contact your pension fund.N.B.: the capital is restricted for three years following each repurchase.If you have used part of your capital to purchase a residence, you must have reimbursed the amount taken before your repurchases can be deducted from your taxes (except in the case of a divorce).Those arriving from abroad may only pay a maximum of 20% of their revenues during the first five years.
- Must the pension fund be informed in the case of divorce or marriage?
It is important to inform your pension fund of the change in your situation. In the case of a divorce, the LPP assets to be shared between the spouses are those acquired during the marriage. The assets acquired prior to the marriage are not shared. There is also a division when one of the spouses receives a disability pension or a Pillar 2 old age pension.
- What amount does the employer pay towards the Pillar 2?
The occupational pension provision or Pillar 2 is financed on the basis of parity between the employer and the employee.
- What is the minimum salary that must be insured under the LPP?
Anyone who receives an annual salary of over CHF 21,510 in 2021 from the same employer must be insured under the LPP. The insurance for death and disability risks begins on 1 January following the date of the person’s 17th birthday. Savings for an old age pension begin on 1 January following the date of the person’s 24th birthday.
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- If someone is unemployed, are they still insured under the LPP?
Those who receive unemployment indemnities and whose daily salary is over CHF 82.60 are compulsorily insured with a substitute LPP institution for disability and death risks and also for old age pension. The person insured and the unemployment insurance each pay half of the contributions. For an unemployed person, the termination benefits must be deposited with a vested benefits foundation (bank or insurance), or directly with a substitute LPP institution.For an old age pension, it is possible to maintain coverage on a voluntary basis. The pension fund institution should inform those concerned of this possibility. The insurance can be maintained with the same pension fund institution, if the regulatory provisions allow – which is rare – or with a substitute institution. The costs arising from the maintenance of the pension provisions on a voluntary basis are entirely at the expense of the person insured.For persons over 58 years of age who find themselves unemployed, please see our article: continuation of pension provision in the event of dismissal after the age of 58 .
Questions on individual pension provisions
- What is Pillar 3?
Pillar 3 corresponds to a voluntary pension provision taken out with a bank or an insurance. It is a supplement to Pillars 1 and 2 through the constitution of a capital and an adapted risk coverage (if desired). For example, a bank account, shares or a life insurance.
- What are the differences between Pillar 3a and 3b?
Pillar 3a is a restricted pension plan open to all those who have gainful employment with a salary subject to the AVS. This product comes in the form of a bank account or a life insurance to which the employee pays contributions until they reach the age of their AVS retirement or five years earlier. They may take advantage of an important tax exemption as the premiums invested (according to certain modalities) may be deducted from taxable income (N.B.: as of 2021 the rules change for cross-border workers).Pillar 3b is an unrestricted pension plan that is open to everyone, independently of their professional activity and place of residence. The product comes in the form of a bank account or a life insurance in which the amounts paid are not capped. The persons insured may (in principle) dispose of the funds they have paid into it at any time.Depending on the Canton of residence, the annual premium (according to the maxima set according to the Canton), may also be deducted from the taxable income.
- How much can be paid into a Pillar 3a?
Employees affiliated to a pension fund institution may contribute a maximum of CHF 6,883 per annum to a Pillar 3a (figures for 2021). Independents who are not affiliated to a pension fund institution may contribute 20% of their income but a maximum of CHF 34,128 per annum as of 2021.N.B.: these amounts are updated at the end of each year. You should therefore seek advice.
- Is there a minimum amount to contribute to a Pillar 3? Can one change the premium?
Whether it is a Pillar 3a or 3b, there is no minimum amount. It is always possible to increase or decrease the amount paid into a Pillar 3, depending on one’s budget.
- Can a cross-border worker open a Pillar 3?
A cross-border worker can open a Pillar 3. Please note however that as of 2021 a tax exemption is only possible if the worker obtains the statute of quasi-resident (90% of the household’s taxable revenues come from Switzerland).
- As an independent, must I open a Pillar 3?
It is important to think about one’s pension provisions as soon as possible to ensure a sufficient income on retirement. The Pillar 3 may be a good solution. We suggest that you consult one of our counsellors.