2nd pillar – Occupational retirement provision
Pursuant to LOB, the role of occupational retirement provisions is to supplement AHV and disability pensions to enable the continuation of the accustomed standard of living.
Who is insured?
Mandatory coverage extends to all employees covered under AHV starting on January 1 following their 17th birthday, subject to a minimum AHV annual income of CHF 20,880 (admission threshold). Self-employed individuals and employees not subject to mandatory coverage may obtain voluntary coverage.
Financing and contributions
Mandatory occupational retirement pensions are funded by contributions made by pension plan participants and their employers; the employer is required to pay 50% of total contributions payable. The total amount represents the contributions for the savings and insurance portions plus additional LOB costs.
The law does not stipulate contribution rates, but instead only the retirement credits to be credited to a personal pension account in the name of the respective insured persons.
For further information and an overview of the most important legal foundations of the occupational retirement provision see the
Factsheet Basics of the Mandatory occupational retirement pensions in German