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  #41  
Old 05.01.2015, 21:10
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It's not so much that employers 'match' contributions, there is a legal requirement for pensions to be paid, it's usually split 50%, however the employer could pay 100%
Didn't know that. Anyway, economically it makes very little difference I suppose.

But my point was really that if you buy extra credits, then that's down to you, and the employer is under no obligation to pay any part of that.

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I'm starting a new job. From what I can see the employee (me) has no contributions thus allowing the employer to pay the minimum legal of 3,500

So if I said I want to pay 6k for example per year in monthly payments. This I gather would need the company to match it. Can the company deny me this possibility and keep to the bare legal minimum? Or would they have to accept my payment and accept to match it?
How old are you, may I ask?

Last edited by 3Wishes; 06.01.2015 at 00:01. Reason: merging successive posts
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  #42  
Old 05.01.2015, 21:40
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Re: Pension Second Pillar contributions

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Right. You can look at your statement for a rough idea, or just write to them for an exact amount.

But... I don't think he was talking about buy ins, but rather regular in payments. As far as I know, employers won't match buy ins.
Ah, you're quite right - sorry... tired brain is my excuse.
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  #43  
Old 05.01.2015, 23:58
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Re: Pension Second Pillar contributions

Im 34.

Altho its not the actual figure (3,500) I am asking about whether that is correct for my age or its higher/lower. Its kind of the principle and generic question.

Can an employer get away with paying the absolute bare minimum and refuse contributions from the employee?
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  #44  
Old 06.01.2015, 00:23
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Re: Pension Second Pillar contributions

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Im 34.

Altho its not the actual figure (3,500) I am asking about whether that is correct for my age or its higher/lower. Its kind of the principle and generic question.

Can an employer get away with paying the absolute bare minimum and refuse contributions from the employee?
Not sure where this 3,500 comes from. The employer has to pay at least 10% (in your case) of whatever you earn between 24,570 and 84,240 (though the numbers may have gone up a little this year with inflation). Or in the special case that you earn between 21,061 and 28,080 then he has to pay 10% of 3,510. This 10% figure is the relevant statutory minimum at your age. In both cases, the total going into the pot is going to be 20% of the amount in question, so he can pay more than 10% and you pay the remainder. You cannot choose to pay more and then force him to match it.

For that part that you earn above 84,240, the same scheme applies: Up to a total of 20% of the income in this bracket can be paid in, but this part is entirely voluntary on the part of the employer, and I don't think you can pay more than half of this yourself (just as for the obligatory part above).

But in principle you've got some wiggle room here. If the employer doesn't want to pay into this part, but you really want it, you could offer to take a little pay cut, so that you would effectively be making the contribution for him.

Hope that helps.

Last edited by ommthree; 06.01.2015 at 00:25. Reason: Clarity
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  #45  
Old 06.01.2015, 02:56
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Re: Pension Second Pillar contributions

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Not sure where this 3,500 comes from. The employer has to pay at least 10% (in your case) of whatever you earn between 24,570 and 84,240 (though the numbers may have gone up a little this year with inflation). Or in the special case that you earn between 21,061 and 28,080 then he has to pay 10% of 3,510. This 10% figure is the relevant statutory minimum at your age. In both cases, the total going into the pot is going to be 20% of the amount in question, so he can pay more than 10% and you pay the remainder. You cannot choose to pay more and then force him to match it.

For that part that you earn above 84,240, the same scheme applies: Up to a total of 20% of the income in this bracket can be paid in, but this part is entirely voluntary on the part of the employer, and I don't think you can pay more than half of this yourself (just as for the obligatory part above).

But in principle you've got some wiggle room here. If the employer doesn't want to pay into this part, but you really want it, you could offer to take a little pay cut, so that you would effectively be making the contribution for him.

Hope that helps.
Regardless of age, the Employer NEVER has to pay 10%, 10% is the total payable the employer only has to pay half.

The 20% contribution you talk about is therefore pure fantasy.
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  #46  
Old 06.01.2015, 03:21
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Re: Pension Second Pillar contributions

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Regardless of age, the Employer NEVER has to pay 10%, 10% is the total payable the employer only has to pay half.

The 20% contribution you talk about is therefore pure fantasy.
No it isn't. Would you like to see a copy of my BVG statement?
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  #47  
Old 06.01.2015, 04:34
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Re: Pension Second Pillar contributions

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No it isn't. Would you like to see a copy of my BVG statement?
You claimed in an earlier post that the employer HAS TO PAY 10%, this is totally untrue.

How does seeing 'your' statement prove what an employer has to pay?
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  #48  
Old 06.01.2015, 04:55
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Re: Pension Second Pillar contributions

It shows that it is not "pure fantasy".

It would be something of a coincidence if both pension plans that I've had were precisely twice as generous as the legal requirement, wouldn't it?
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  #49  
Old 06.01.2015, 06:55
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Re: Pension Second Pillar contributions

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It shows that it is not "pure fantasy".

It would be something of a coincidence if both pension plans that I've had were precisely twice as generous as the legal requirement, wouldn't it?
Perhaps, but it'd be less of a coincidence if you simply didn't understand your statement.

The legal minimum contribution is ten percent. Of that, the employer must pay at least half. My previous two employers did exactly that; my current employer is more generous and coughs up 6 of the 10 percent, while I pay 4. I have the option to contribute more than that, without any employer matching, if I so choose.
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Old 06.01.2015, 08:26
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Re: Pension Second Pillar contributions

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Perhaps, but it'd be less of a coincidence if you simply didn't understand your statement.

The legal minimum contribution is ten percent. Of that, the employer must pay at least half. My previous two employers did exactly that; my current employer is more generous and coughs up 6 of the 10 percent, while I pay 4. I have the option to contribute more than that, without any employer matching, if I so choose.
No, I definitely don't misunderstand my statement. The total amount that goes in every year is 20% of my pensionable salary - that is my salary less the first 24k. However, it may be that I've simply had very generous employers which has led me to a misunderstanding of what the minimum amount is. Possibly.
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  #51  
Old 06.01.2015, 08:49
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Re: Pension Second Pillar contributions

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No, I definitely don't misunderstand my statement. The total amount that goes in every year is 20% of my pensionable salary - that is my salary less the first 24k. However, it may be that I've simply had very generous employers which has led me to a misunderstanding of what the minimum amount is. Possibly.
You could just be old (contributions are age dependent), but it's never has high as 20% - tops out at 18.

Summary version here, for the Google-impaired: https://en.comparis.ch/umzug-schweiz...cherungen.aspx
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  #52  
Old 06.01.2015, 12:50
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Re: Pension Second Pillar contributions

At age 34 the minimum is 7% of the insured salary, wherof the employer has to pay at least half. At age 35 this increases to 10%. Maximum mandatory payment is 18%.

However, the employer can go above the minimum with his contributions however high he pleases.

http://www.bsv.admin.ch/kmu/ratgeber...x.html?lang=de
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