Survivors' benefits in occupational benefits plans
Occupational benefits plans provide survivor’s benefits to insure financial security for dependents in the event of the insured person's death. These benefits include a widow's/widower's pension, an orphan's pension, and, if applicable, a one-time lump-sum payment.
Survivor’s benefits
The surviving spouse (man or woman) who is in charge of a child or children, or who is al east 45 years old and has been married five years or more, is entitled to a survivor's pension. Surviving spouses who meet none of these requirements receive a one-off payment corresponding to three annual pensions.
The right to a survivor's pension becomes void when the surviving spouse remarries. At the death of an ex-spouse, the divorced spouse (man or woman) is also entitled to a survivor's pension, if the marriage lasted at least ten years and if the divorced spouse received a alimony, or a capital payment instead of a life annuity pursuant to the divorce settlement. The pension is however limited to the alimony pension.
Registered partners are subject to the same rules as married or – if the partnership has been legally dissolved – divorced couples.
The insured person may designate as the beneficiary of survivor's benefits his or her non-married partner, if the couple lived together for 5 years prior to the death of one partner, or if they had to contribute to the upkeep of their common child or children.
Overview of the compulsory LPP/BVG benefits
Widow or widower
The surviving spouse is at least 45 years old and the marriage lasted 5 years or longer.
Divorced persons are entitled to survivors' benefits at the death of their ex-spouse if the marriage lasted at least ten years, or if they received a pension or cash payment (instead of a life annuity pursuant to the divorce settlement).
Cash benefits for the surviving spouse
To lack entitlement to a surviving spouse's pension. The equivalent of three annual pensions as a one-off cash payment
Survivors’ pension for registered partner
- The registered partnership must have lasted for at least five years,
- the registered partner must be older than 45 or
- responsible for supporting at least one child.
In the event of legal dissolution of a registered partnership, the ex-partner is considered to be on a par with a widow or widower if the registered partnership lasted for at least 10 years and the ex-partner was granted a pension or capital payment for a lifelong pension in the decree dissolving the partnership.
The annual amount is equal to 60% of the retirement pension or of the full disability pension received by the deceased.
Capital payment for registered partner
To lack entitlement to a surviving spouse's pension. The equivalent of three annual pensions as a one-off cash payment
Survivor's benefits are available to cohabiting partners, if the pension plan regulations allow it
- To have lived together for at least 5 years prior to the death of one the partners;
- Or to support their common child or children;
Amount established according to the provisions of the pension fund
Orphan's pension
To be an old age pension recipient, to have one child or children less than 18 years of age, still in school or training, or disabled to at least 70%. The pension is paid until age 18 or 25 at the latest if studies or apprenticeship.
The annual amount equals to 20% of the retirement pension or of the full disability pension received by the deceased.
Special case: Lump sum payment
In the event of death, a one-time lump-sum payment may be possible if the pension plan regulations allow it.
Overpayment of benefits
When an insurance case involves different insurance schemes: accident insurance (LAA), military insurance (LAM) and the LPP/BVG, the benefits of accident and military insurance are always due first. Disability and survivors' benefits under the LPP/BVG are due only if added to the benefits from other schemes, all benefits amount to not more than 90% of the income of which the insured person is presumably deprived. Over this threshold, LPP/BVG disability and survivors' benefits are correspondingly curtailed. This provision is intended to prevent that the benefits paid by different insurance schemes improve the financial status of the insuree.
Maintaining insurance provision
The insured person leaving a pension fund for a reason other than old age, death or disability, is entitled to a withdrawal benefit, also called a vested benefits. This is the case when insured employees change their employer, whether or not they have a new job after leaving the pension fund. When an employee changes employer, the pension fund transfers the vested benefits to the new employer's pension fund. Insurees who do not take a new job must indicate the pension fund to which institution it should transfer the vested benefits. The insured person can choose between a personal movable credit account with a bank or a vested benefits policy in his or her name with an insurance company. Insurance provision is maintained, since to receive capital payment the insured person must meet certain precise conditions.
If the insured person fails to inform the pension fund of his or her intentions, the latter must transfer the withdrawal benefit (vested benefits) to the suppletive institution no later than two years after the benefit has been granted.
Insured persons who undertake a search for dormant assets should contact the 2nd Pillar Central Office ("Centrale du 2e pilier"). This institution will inform them free of charge of the institution(s) that may hold assets or vested benefits accounts or policies in their name.
Pension funds and institutions that manage vested benefits accounts or policies have the obligation to inform the 2nd Pillar Central Office of unclaimed assets at least once a year.
Unemployed insurees continue to be subject to mandatory insurance for death or disability, to the extent that the unemployment fund pays them daily benefits or compensation (after a waiting period that is usually set at 5 days) and if their daily income is over CHF 81,20 until 2022, CHF 84,70 until 2024 and CHF 87.10 from 2025.
The contributions are paid in half by the unemployed person, in half by the unemployment fund. The insurance is managed by the suppletive institution. Insured persons who have not found work and are insured on an optional basis with their original pension fund, may be freed of this obligation.