Colloquially, the pension fund is understood under the term occupational pension. As the name implies, all employed persons are insured. Persons obligated to the occupational pension law are those who are insured under Pillar 1 and have a minimum income of CHF 21,150.00 annually (as of 2018).
In turn, Pillar 2 is divided in a mandatory and a more extensive supplementary part. The supplementary part has considerable relevance in practice - especially for higher incomes. This is because in the area of the mandatory portion, only a limited amount of wages may be insured. The amount of salary above the maximum limit can however be insured in the supplementary part.
The mandatory part - as the name suggests - is mandatory for employees. The obligation is from a minimum of CHF 21,150.00 annually. Furthermore, the employment relationship must have a minimum duration of three months.
The mandatory accident insurance is a part of the mandatory part of Pillar 2. This insurance is mandatory for all employed employees in Switzerland. The coverage applies primarily to occupational accidents. Non-occupational accidents are also covered automatically if the week is at least 8 hours. If a person works less than 8 hours per week, there is the possibility to take out such insurance with the person’s (mandatory) health insurance for a relatively small contribution. On the other hand, an existing accident insurance with the health insurance can be cancelled if the workweek is more than 8 hours.
Further attention is given to the return on retirement assets. For 2018, this minimum rate is 1%. Current information regarding interest is available at www.bsv.admin.ch.
