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Old 22.11.2016, 12:36
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pension fund keeping part of 2nd pillar?

Hope someone could answer my question...


I recently finished a contract through a recruiter / temp agency. (1st contract I did here in Switzerland - previous roles were permanent ones with large companies.)


The agency deducted pension payments from my salary. In addition to 1st pillar, they deducted a bare minimum 2nd pillar (couple of hundred a month). I understand the employers is supposed to match the 2nd pillar 50/50 to employee payments - which they did.


When I left, and asked the pension to be transferred to a freizügigkeitskonto, the pension fund only paid about 85% of the accumulated pillar 2, keeping about 15% for themselves. When I asked, they said it was "age-related"... Is this normal, that the pension fund does not transfer all of the payments that have been made during the employement?


(also, I guess that pillar 1 doesn't transfer at all, as this is paid directly to goverment anyway, so it's only pillar 2 that's supposed to transfer)


thanks... !
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Old 22.11.2016, 12:53
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Re: pension fund keeping part of 2nd pillar?

Hello - difficult to comment without further details but it is possible that your (and employer) contributions are split in two elements:
- savings contribution
- risk insurance

The first one forms the actual savings/capital
The second one funds payouts in case of disability of death

They should transfer all of the first element; however, they don't transfer any of the second one. The risk insurance is "a cost".

You should be able to find the contribution structure in the plan documents. Often both parts are paid by the employer and the employee equally but the employer may be covering higher share (voluntarily). In some companies, the employer pays the entire risk premium.
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Old 22.11.2016, 13:59
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Re: pension fund keeping part of 2nd pillar?

thank you!


That seems to be the most likely explanation, the pension fund terms mention something about saving and insurance. Can't still quite reconcile the payslip with the numbers the fund conditions have (in complex German), but taking your explanation into account, seems close enough now... thanks!
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Old 22.11.2016, 14:06
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Re: pension fund keeping part of 2nd pillar?

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thank you!


That seems to be the most likely explanation, the pension fund terms mention something about saving and insurance. Can't still quite reconcile the payslip with the numbers the fund conditions have (in complex German), but taking your explanation into account, seems close enough now... thanks!
Insurance costs are a huge amount of Swiss pensions, it's not just a 'savings scheme'. It's a legal requirement so unfortunately there is nothing you can do. Hopefully only the minimum salary band was actually insured & not your full earnings. Of course if you were disabled you would wish a higher proportion was insured.
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