Glossary
Occupational Pension (BVG / 2nd Pillar)
Occupational pension (BVG / 2nd Pillar) supplements the AHV and is compulsory for employees above a statutory entry threshold. It operates on a funded basis: each insured person accumulates an individual retirement account that can be drawn as a pension or lump sum at retirement. The legal basis is the BVG.
At a glance
- Funded system: each insured person saves their own retirement capital (BVG Art. 15 ff.).
- The employer must cover at least half of contributions; employees pay at most the employer's share (BVG Art. 66).
- Accumulated capital earns the statutory minimum interest rate, set periodically by the Federal Council (BVG Art. 15 para. 2).
Frequently asked questions
The pension fund often represents an individual's largest single asset. The accumulated capital determines substantially whether the pension, combined with the AHV, will maintain an accustomed standard of living. Gaps arising from career breaks or part-time work can be closed through voluntary purchases or private provision.
Part of the topic
Vorsorge & Pensionierung
Sources: Bundesamt für Sozialversicherungen (BSV) · Systematische Rechtssammlung (fedlex)