Occupational Pension Plan (LPP/BVG): Who Qualifies and What You Get
Learn how the LPP/BVG works in Switzerland, including who qualifies for these pension benefits and how to manage your vested benefits when changing jobs.
The Occupational Pension Plan (LPP/BVG) is a mandatory part of the Swiss retirement system designed to provide you with additional financial security after you stop working.
Who it's for
This plan is for employees who earn an annual income above a certain threshold. If your yearly earnings exceed the required minimum amount, you are part of this system.
What you get
When you reach retirement age, you receive your benefits in the form of a lump-sum capital payment or a regular annuity (a series of periodic payments). The total amount you receive depends on the total contributions made into the fund throughout your working life.
What it costs you
The cost is deducted directly from your salary. By law, your employer is required to cover at least half of the total contribution amount.
The catch to know
If you change jobs, your pension benefits do not automatically follow you to your new workplace. You must ensure that your "vested benefits"—the money you have already saved—are transferred from your old pension fund to your new one to avoid losing them.
How to apply
- Check your salary statements to confirm you meet the income threshold.
- Confirm with your employer that your contributions are being deducted correctly.
- When changing jobs, contact your previous pension fund to arrange the transfer of your benefits.