Glossary
Enveloping Pension Fund
An Enveloping Pension Fund insures the mandatory and supra-mandatory retirement savings in a single, combined plan. Unlike a split model, it does not account for both portions separately but may offset more and less favourable parameters across the total savings balance.
At a glance
01
Enveloping funds combine the mandatory and supra-mandatory tiers in one plan.
02
They may apply a blended minimum interest rate and minimum Conversion Rate to the total balance, provided the statutory minimum benefits of the mandatory tier are preserved (shadow calculation).
03
Most private-law Pension Funds in Switzerland are organised on an enveloping basis.
Frequently asked questions
In an enveloping fund, mandatory and supra-mandatory savings are credited with interest and converted jointly. Through a shadow calculation, the fund ensures that the statutory minimum benefits of the mandatory tier are met in every case. The effective terms and conditions result from the pension rules.
Part of the topic
Vorsorge & Pensionierung
