Second Pillar– OCCUPATIONAL PENSION

Pillar 2 of the Swiss pension system consists of occupational benefits insurance (BVG), also commonly referred to as the “pension fund”. The purpose of occupational benefits insurance is to supplement the benefits from AHV/DI in old age, in the event of disability and in a death case, and to ensure that your accustomed lifestyle can be maintained. All employees with income above the annual salary subject to AHV contributions (minimum annual BVG salary) are insured by the pension fund chosen by their employer, and through the automatic BVG deductions. Like the insurance coverage under pillar 1, occupational benefits insurance is therefore part of mandatory pension insurance. The second pillar also includes occupational accident insurance, daily sickness benefits insurance and the vested benefits institutions.

Pillar 2 at a glance:

• Occupational benefits insurance (BVG) or “pension fund”, accident insurance, daily sickness benefits insurance, vested benefits institutions
• Additional mandatory pension provision for working people
• Main objective: to maintain your accustomed lifestyle

FAQ – Who is insured in the accident insurance?

All employees working in Switzerland are legally insured against the financial consequences of an accident. Employees whose weekly working time with an employer does not correspond to at least eight hours are insured only against occupational accidents and illnesses and during their commute. From eight working hours per week, employees are also insured during their free time and against occupational and non-occupational accidents.