Occupational Pension (Pillar 2): Who Qualifies and What You Get
Learn about the mandatory workplace pension system in Switzerland, including how contributions work and what to do when you change jobs.
This is a mandatory retirement savings plan for employees that works alongside the state pension system to provide financial security in your later years.
Who it's for
This scheme is designed for employees who earn a salary above a specific income threshold set by the government. If your earnings fall below this certain level, you may not be required to participate in this specific pillar of the pension system.
What you get
The primary benefit is the accumulation of pension fund savings. These funds are managed in a pension fund to build up capital that you can access once you reach retirement age, helping to supplement your standard state benefits.
What it costs you
Participating in this scheme involves regular monthly contributions. These costs are shared between you and your employer, meaning a portion is deducted directly from your gross salary while your employer also pays a corresponding amount into the fund on your behalf.
The catch to know
The most important thing to manage is your "vested benefits" (known locally as Freizügigkeitsleistung). If you change jobs, you cannot simply stop contributing; you must actively ensure that your accumulated savings are transferred from your previous pension fund (the Pensionskasse) to your new employer's fund to avoid losing your progress.
How to apply
- Verify with your employer that your current salary meets the required threshold for mandatory participation.
- Review your monthly payslips to confirm that both your contribution and your employer's contribution are being correctly recorded.
- When you move to a new job, provide your new pension provider with the necessary details of your previous fund to ensure your savings are transferred.