Occupational benefit provision (2nd pillar/LPP), which is jointly financed through employer and employee contributions, is a supplementary insurance scheme. The benefits it provides in the event of old age, invalidity or death supplement the benefits disbursed by the AVS/AI scheme. Occupational benefit provision includes all measures that are taken on a collective basis to ensure that the elderly, surviving dependants and the disabled in receipt of AVS/AI benefits are able to maintain in an appropriate manner the standard of living they enjoyed prior to the occurrence of the insured event of old-age, death or invalidity.
Impact of BREXIT on cash payment upon departure: As a result of the United Kingdom's withdrawal from the EU (Brexit), the Agreement on the Free Movement of Persons between Switzerland and the EU (FMOPA), as well as Regulations (EC) No. 883/2004 and (EC) No. 987/2009 on the coordination of social security systems, do no longer apply to relations between Switzerland and the United Kingdom.
As of 1 January 2021, there is no more restriction of the cash payment of the occupational pension scheme after departure to the United Kingdom in accordance with the Swiss national law. As a result, persons residing in the UK are entitled to claim the cash payment of their entire departure benefits of the occupational pension scheme (compulsory and supplementary benefits).
The new bilateral social security agreement, applicable as from 1 November 2021, has no impact on this legal situation since it does not cover the occupational pension scheme.
Switzerland’s old-age insurance system: A tried-and-tested system – in simple terms
This brochure is designed to provide you with basic information on Switzerland's old-age insurance system. It focuses on the first pillar, OASI, and on the second, occupational pension insurance, but also provides a brief summary of the third pillar, voluntary private provision.