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Glossary

Supra-Mandatory Benefits (BVG)

Supra-mandatory benefits (BVG) comprise the parts of occupational pension that exceed the statutory BVG minimum. Mandatory insurance covers annual salary from CHF 26,460 to CHF 90,720 (BVG Art. 8 para. 1); anything above that can only be insured on a supra-mandatory basis. Pension funds have more freedom there: BVG Art. 49 para. 2 exhaustively lists which provisions beyond the minimum benefits apply, and the minimum Conversion Rate of 6.8 percent under BVG Art. 14 para. 2 is not among them.

At a glance

  • In the supra-mandatory segment, employers are free to offer more favourable terms (higher interest, better risk benefits) than the BVG minimum requires.
  • Salary portions above the BVG maximum salary (upper salary limit under BVG Art. 8) can only be insured on a supra-mandatory basis.
  • When comparing pension funds, it is important to assess how large the supra-mandatory portion is and what conditions apply to it.

Frequently asked questions

Your pension certificate generally shows mandatory and supra-mandatory retirement savings separately. The supra-mandatory portion is subject to less rigid statutory requirements, for example regarding the minimum interest rate or Conversion Rate. Employers with more attractive pension fund regulations often offer better terms on the supra-mandatory portion, which can increase the retirement pension noticeably.

Part of the topic

Pension & Retirement

Sources: Bundesamt für Sozialversicherungen (BSV) · Systematische Rechtssammlung (fedlex)

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.