Second Pillar (LPP/BVG): Who Qualifies and What You Get
Learn how the Swiss occupational pension fund works, including who qualifies for contributions and what happens when you change jobs.
The Second Pillar, also known as LPP or BVG, is a mandatory occupational pension scheme designed to provide you with additional financial security during retirement.
Who it's for
This scheme is for employees in Switzerland who earn above a specific income threshold. If your salary meets the required level, you are automatically included in this part of the pension system.
What you get
You accumulate funds in an occupational pension fund through your employment. These accumulated benefits are intended to supplement your state pension, providing you with more financial stability when you retire.
What it costs you
The cost is shared between you and your employer. Both you and your employer contribute a portion of your salary toward the pension fund.
The catch to know
If you change jobs, you cannot simply leave your money behind. You must ensure your "vested benefits"—the money you have already saved—are transferred from your old pension fund to your new employer's fund to ensure your savings stay intact.
How to apply
- Check your salary to see if you meet the income threshold for coverage.
- Confirm with your employer that they are making the required contributions to your pension fund.
- When changing jobs, notify your new employer of your previous pension fund details so your benefits can be transferred.