Legal bases & legislation
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.
All employees whose annual salary from the same employer is above CHF 21,150 (2018) and 21,330 (from 2019) must contribute to the 2nd pillar. In contrast, occupational benefit provision is not compulsory for the self-employed, although they are free to pay into the 2nd pillar on a voluntary basis.
The LPP defines minimum benefits in the event of old age, death, and disability. But pension funds are free to provide benefits going beyond the statutory minimum.
Further information is available in french, german and italian.
Occupational pension funds, also called the 2nd pillar, complete the basic 1st pillar AVS/AI/APG system (old age, disability, loss of income). Together, these two insurance systems should ensure that retired people to a large extent maintain their former standard of living. i.e. they should jointly provide approximately 60% of the last salary.
Here you will find an overview of how occupational benefits provision is organised and financed.
Other links are available in french, german and italian.
Last modification 24.09.2018