BVG (pension fund)
The second pillar, the occupational pension fund that employees and employers pay into, paid out as a pension, a lump sum or both.
Contributions rise with age, from 7 % to 18 % of the coordinated salary for the mandatory part, shared with the employer. If you leave work early, the money moves to a vested-benefits account. Plan rules decide how early you can retire from the fund, usually from 58.
Tools that use it
Related terms
- Three pillarsThe Swiss pension system: AHV (state), BVG (occupational) and private savings (3a and 3b).
- Conversion rateThe percentage of your pension-fund balance paid each year as a lifelong pension.
- Vested benefitsYour pension-fund money when you are not employed, held in a vested-benefits account or policy until you start a new job or retire.
- Pension fund buy-inA voluntary payment into your pension fund to close a gap, deductible from taxable income.
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Swiss pensions
Your pension fund before 65: annuity, lump sum or leave it
What you can do with second-pillar money if you stop working early: early retirement, a vested benefits account, a lump sum, and the tax and risk trade-offs.