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Glossary

Beneficiary Order

The beneficiary order determines who receives benefits from a person's Pillar 3a, vested benefits account or pension fund after their death. In Pillar 3a and for vested benefits assets, the capital is paid out to the beneficiaries; in the pension fund, the benefits are mainly survivors' pensions. For Pillar 3a, Art. 2 BVV 3 prescribes a statutory sequence. The surviving spouse or registered partner ranks first. The second rank groups together direct descendants, persons substantially supported by the deceased and the person who either lived in uninterrupted cohabitation with the deceased for the five years before death or must support children in common with the deceased. Parents, siblings and finally the other heirs follow. A later rank comes into play only if there is no one in the preceding one. From 1 June 2027, the pension saver can add persons from the second rank to the first rank, for example direct descendants (Art. 2 para. 2 let. b BVV 3, version from 1 June 2027). From that date, when specifying entitlements in more detail, the pension saver may not reduce the share of a beneficiary in the first or second rank to less than 10 percent of the pension capital (Art. 2 para. 3 BVV 3, version from 1 June 2027).

At a glance

  • Until 31 May 2027, the pension saver may designate individual persons in the second rank of Pillar 3a and specify their entitlements in more detail. The second rank includes direct descendants, substantially supported persons and the person who either lived in uninterrupted cohabitation with the pension saver for the five years before death or must support children in common with the pension saver. The order of parents, siblings and other heirs can be changed among themselves, but this does not move them ahead of the second rank (Art. 2 para. 2 and 3 BVV 3, version until 31 May 2027).
  • From 1 June 2027, Art. 2 para. 2 and 3 BVV 3 applies in the version of the amendment of 12 June 2026 (AS 2026 325). The pension saver may add one or more persons from the second rank to the first rank and specify the entitlements of the individual beneficiaries in more detail. As before, the pension saver may specify the entitlements of persons in the second rank in more detail and change the order of parents, siblings and other heirs. When specifying entitlements in more detail, the pension saver may not reduce the share of a beneficiary in the first or second rank to less than 10 percent of the pension capital. The lower limit applies to the first and second rank, not to parents, siblings and other heirs.
  • Until 31 May 2027, the second rank of Pillar 3a applies only if the deceased leaves neither a spouse nor a registered partner. Besides direct descendants and substantially supported persons, it includes the person who either lived in uninterrupted cohabitation with the deceased for the five years before death or must support one or more children in common with the deceased (Art. 2 para. 1 BVV 3). From 1 June 2027, persons from the second rank are in the first rank if the pension saver has added them there. The second rank applies only if there is no one in the first rank (Art. 2 para. 1 BVV 3 and Art. 2 para. 2 BVV 3, version from 1 June 2027).
  • In the pension fund, the following persons are beneficiaries only if the regulations of the pension institution provide for it: substantially supported persons and the person who either lived in uninterrupted cohabitation with the deceased for the five years before death or must support children in common with the deceased (Art. 20a para. 1 BVG). Anyone already drawing a widow's or widower's pension has no entitlement to these benefits (Art. 20a para. 2 BVG).
  • For vested benefits assets, the first rank consists of the survivors under the BVG, that is the surviving spouse, the registered partner and children entitled to an orphan's pension. The second rank comprises substantially supported persons and the person who either lived in uninterrupted cohabitation with the deceased for the five years before death or must support children in common with the deceased. Children not entitled to an orphan's pension follow only in the third rank, together with parents and siblings (Art. 15 para. 1 FZV). In the contract with the vested benefits institution, the insured person can agree that the persons in the second rank are placed in the first rank alongside the survivors under the BVG (Art. 15 para. 2 FZV). From 1 June 2027, a lower limit also applies: when specifying entitlements in more detail, the insured person may not reduce the share of a beneficiary in the first or second rank to less than 10 percent of the pension capital (Art. 15 para. 3 FZV, version from 1 June 2027).

Frequently asked questions

Not in every case. If the deceased leaves a spouse or a registered partner, that person takes precedence. If there is no one in the first rank, the second rank applies. Under Art. 2 BVV 3, this rank includes the cohabiting partner if the cohabitation continued uninterrupted for the five years before death or if the partner must support one or more children in common. The same rank includes direct descendants and persons who were substantially supported by the deceased. Until 31 May 2027, the pension saver can designate individual persons in this rank and set their shares (Art. 2 para. 2 BVV 3, version until 31 May 2027). From 1 June 2027, the pension saver can add one or more persons from the second rank to the first rank (Art. 2 para. 2 let. b BVV 3, version from 1 June 2027). They then rank alongside the spouse or registered partner. How the capital is divided without such a designation, and whether the partnership must be reported during the person's lifetime, is governed by the foundation's regulations or the insurance conditions.
Only partly. The surviving spouse or registered partner ranks first. Until 31 May 2027, individual persons can be designated in the second rank and their shares set. Parents, siblings and other heirs can be reordered among themselves, but this does not move them ahead of the second rank (Art. 2 para. 2 and 3 BVV 3, version until 31 May 2027). From 1 June 2027, the pension saver can add persons from the second rank to the first rank. The entitlements of persons in the second rank can still be specified in more detail. Parents, siblings and other heirs can likewise be reordered. When entitlements are specified in more detail, the share of a beneficiary in the first or second rank may then not be reduced to less than 10 percent of the pension capital (Art. 2 para. 2 and 3 BVV 3, version from 1 June 2027).
By law, the surviving spouse and the registered partner receive a survivors' pension or, if the conditions regarding children, age and length of marriage are not met, a lump-sum settlement (Art. 19 and 19a BVG). For divorced persons, the Federal Council regulates the entitlement (Art. 19 para. 3 BVG). Children receive an orphan's pension until the age of 18, or until the age of 25 if they are in education or at least 70 percent disabled (Art. 20 BVG and Art. 22 para. 3 BVG). Beyond this, the pension institution may provide for further beneficiaries in its regulations: substantially supported persons and the person who either lived in uninterrupted cohabitation with the deceased for the five years before death or must support children in common with the deceased, then children not entitled to an orphan's pension, parents or siblings and finally, to a limited extent, the other statutory heirs (Art. 20a para. 1 BVG). The regulations of the person's own pension fund are therefore decisive.
On 12 June 2026, the Federal Council amended Art. 2 para. 2 and 3 BVV 3 (AS 2026 325). The amendment applies from 1 June 2027. Until 31 May 2027, the previous version applies: the first rank consists only of the surviving spouse or registered partner. From 1 June 2027, the pension saver can add persons from the second rank to the first rank, for example direct descendants. The entitlements of the individual beneficiaries can be specified in more detail. In doing so, the share of a beneficiary in the first or second rank may not be reduced to less than 10 percent of the pension capital. A lower limit of the same size applies to vested benefits assets from 1 June 2027 (Art. 15 para. 3 FZV). The option to change the order of parents, siblings and other heirs remains.

Part of the topic

Pension & Retirement

Sources: Systematische Rechtssammlung (fedlex), BVV 3 SR 831.461.3, DE · Systematische Rechtssammlung (fedlex), BVG SR 831.40, DE · Systematische Rechtssammlung (fedlex), FZV SR 831.425, DE · Amtliche Sammlung (fedlex), AS 2026 325, DE

This entry is for general information purposes only and does not constitute investment, legal or tax advice. It is a simplified summary of the legal position and tax treatment.