Occupational pension scheme

Occupational pension funds serve to ensure that the employee’s accustomed standard of living can be maintained. They are based on the Federal Act on Occupational Pensions, which since 1985 has provided mandatory insurance for all employed persons from the age of 18 (against risks) and from the age of 25 (savings plan). A person must currently earn a minimum of CHF 20,520 to participate. The maximum mandatorily insured salary is CHF 82,080. The employer contributes at least as high a premium as the employee. Some employers choose to pay more. Premiums can vary between 7% and 18% of income, based on age and sex (the older the person, the higher the premium). Pension funds are foundations, cooperatives or public law institutions that are monitored by cantonal and federal supervisory authorities. Smaller companies often join a collective pension foundation or association.