In this article
Key points
- Your pension certificate, sent every year, shows your benefits in the event of disability, death and retirement.
- In the event of illness, the BVG/LPP disability pension only starts after 12 to 24 months: until then, everything depends on your employer’s policy.
- In the event of an accident, the UVG/LAA pays 80% of the insured salary from the 3rd day.
- Survivors’ pensions, cohabiting partners, purchases: your pension fund’s regulations make all the difference.
When did you last check, on your BVG/LPP pension certificate, the pensions you would receive in the event of illness, accident, death or retirement?
Occupational pension provision is one of the cornerstones of Swiss social security. Yet many employees underestimate this document and find themselves unprepared when illness, an accident or the death of a family member strikes. In this guide, we explain how to read the certificate issued by your pension fund, and why it is essential to know your risk and retirement benefits in detail.
How the second pillar works
Occupational pension provision supplements the OASI/DI. It is based on compulsory saving: employees and employers pay contributions and build up retirement capital over time. It provides two types of benefits:
- Risk benefits: in the event of disability (illness or accident) or death, they supplement the first pillar and maintain the income of the insured person or their survivors.
- Retirement benefits: on ordinary or early retirement, a monthly pension or a lump sum, depending on the pension institution’s regulations.
Compare first- and second-pillar benefits regularly and consider whether you need private pension provision (third pillar), so that your cover is sufficient, financially and for your family.
Incapacity for work and disability due to illness
An illness or accident can lead to partial or total incapacity for work, and to a loss of income if your cover is insufficient. Pension fund benefits generally only start after a waiting period of 12 to 24 months: you therefore need to know how your salary is paid during the first two years.
The first 24 months
- Salary during illness: employers generally take out daily sickness allowance insurance, covering a maximum of 24 months.
- Internal regulations: check the staff regulations or ask the HR department how, and for how long, your salary is insured.
Beyond that: the second-pillar disability pension
- When the pension starts: after the waiting period, usually 12 to 24 months, the pension fund pays the disability pension.
- Coordination with the DI: it is added to the disability insurance pension, provided the procedure to recognise the disability was started in good time.
- Amount and duration: these are shown on the pension certificate and let you check whether the income will cover your family’s needs.
In the event of an accident: the UVG/LAA
Accidents follow different rules from illness: they are governed by the Federal Act on Accident Insurance (UVG/LAA).
Illness or accident: the differences
Table 1| Criterion | Illness | Accident |
|---|---|---|
| Employer’s obligation | None, apart from certain professions | Mandatory insurance under the UVG/LAA |
| Salary during incapacity | According to the employer’s policy, up to 24 months | 80% of the insured salary from the 3rd day, up to CHF 148,200 |
| Better protection | Conditions set freely by the employer | Supplementary accident insurance beyond 80% |
For full details of conditions and benefits, check the internal regulations or ask your employer.
Survivors’ benefits
The pension certificate shows the pensions paid to survivors in the event of death:
- Spouse or registered partner: a pension provided for by the BVG/LPP; the amount and conditions (age limits, age difference) depend on the regulations.
- Children: generally a pension up to age 18, or up to 25 if they are in education, according to the law and the regulations.
- Cohabiting partners: although there is no legal obligation, some pension funds provide a pension under certain conditions (minimum period of cohabitation, financial support, children in common).
Why you should check your pension fund’s regulations
Every pension fund applies its own criteria for beneficiaries and payment conditions. Depending on your family situation, these clauses can be decisive for your loved ones’ financial stability: cover may go beyond the BVG/LPP or, on the contrary, be more restrictive.
If it proves insufficient, additional solutions such as private insurance or dedicated savings can close the gaps and tailor protection to your needs and those of your loved ones.
Retirement benefits
Over your career, your pension fund builds up capital from employee and employer contributions, interest and sometimes investment returns. At retirement, you have two options:
- A monthly pension: paid for life on the basis of the conversion rate, on top of the OASI pension.
- A full or partial lump sum: more flexibility, but no guaranteed lifelong pension, and you manage the funds yourself.
Purchases and tax optimisation
If you have contribution gaps (studies, time abroad, career breaks), or to increase your future pension, you can make voluntary purchases. These are generally deductible and offer a double advantage: better prospects for retirement and an immediate tax saving.
Your pension certificate: a document to review every year
Issued every year, the pension certificate gives a complete overview of your entitlements in the event of disability (illness or accident), death (pensions for a spouse, registered partner, children or cohabiting partner) and retirement (pension or lump sum). With this certificate, every employee should know:
- how first- and second-pillar social insurance benefits are coordinated
- the amount and duration of benefits
- the income or capital gap left after daily allowances or pensions for illness or accident
- the conditions for receiving benefits, in particular the difference between illness and accident
- how partial or total incapacity for work is determined
- when benefits end once you are able to work again
- who receives survivors’ pensions: spouse or registered partner, children, cohabiting partner
- the amount of the benefits and the payment conditions
- the family’s financial needs if the main earner dies
Conclusion: a complete analysis
Understanding your pension fund’s benefits means knowing the guarantees in place, but also checking how they fit into the three pillars and whether they cover the household’s income and capital needs.
Employers often organise information sessions on employee insurance. The insurance and pension broker plays a key role here: answering specific questions and helping everyone read their certificate correctly.
Being well informed is the first step to making sound decisions.
Lorena Respini, Assidu
The second is to rely on a professional who can offer independent advice and personal support, for solid and lasting pension planning.
Member of Management · Insurance Specialist with Federal Diploma of Higher Education · Social Insurance Specialist with Federal Diploma of Higher Education
