Pension Law Changes - Unemployment at 58 and older - Page 2

HIAO · #21 27.11.2020, 17:28

I'm a pension committee member for my employer, and am a little invested in this topic.

Our pension advisors informed me today that the Federal Social Insurance Office (OFAS or BSV) have given their informal assessment that the "right to stay" will not apply to cross border workers - because in their view a cross border worker who is no longer employed by a Swiss employer is not subject to the Swiss social security system.

Pachyderm · #22 27.11.2020, 17:35

	Quote:	HickvonFrick
	By the time you've reached a good age it would quite possibly be financially better to retire simply so you can invest your pillar 2 properly instead of having it languish in a typical Swiss pillar 2 account.

Or transfer the vested fund to VIAC along with your Pillar 3, and invest in equities bundled up into various funds.

ZuriRollt · #23 27.11.2020, 17:48

	Quote:	HIAO
	You will have the right to reduce your pension contribution, by requesting that a notional salary (income subject to AVS) that is lower than your current one is used as the basis for pension contributions. Staying in the plan means you receive the same annual interest rate growth on your accrued pension savings as any other employee. Do you find the HR team are well informed about the pension - I would be asking my questions to a member of the pension committee, or pension fund manager, if there is one. The pension plan is likely to be a separate legal entity from the bank.

Staying in the plan to receive the same annual interest rate growth would absolutely make sense. Next year would mean an increase of over CHF 25‘000 in the pension pot - nothing to be sneezed at at all. Thanks.

No. The HR departments (and they were at high levels) did not understand / have the information). I‘m not even sure that they would have addressed it if I hadn‘t read about it on EF,

eyebeebe · #24 27.11.2020, 19:15

	Quote:	HIAO
	You will have the right to reduce your pension contribution, by requesting that a notional salary (income subject to AVS) that is lower than your current one is used as the basis for pension contributions. Staying in the plan means you receive the same annual interest rate growth on your accrued pension savings as any other employee. Do you find the HR team are well informed about the pension - I would be asking my questions to a member of the pension committee, or pension fund manager, if there is one. The pension plan is likely to be a separate legal entity from the bank.

That’s really quite important. I work for the other big bank and at 58 if I were covering the employer, employee and insurance components it would be 49% of my salary above 29k. However, it would be money I could get back at 63/65 and the 1e part of the scheme is actually quite decent. 9% would be death and disability insurance. That seems expensive as it would only cover until 65 (in the case of disability obviously), but I’d need to ask an actuary if it is fairly priced.

HIAO · #25 27.11.2020, 20:07

	Quote:	eyebeebe
	9% would be death and disability insurance. That seems expensive as it would only cover until 65 (in the case of disability obviously), but I’d need to ask an actuary if it is fairly priced.

9% for the insured component feels toppy, but I suppose it depends on the benefits provided.

By contrast, we have pension insurances for death and disability, plus widows and and orphans pensions. The employee contributes 1% of their income, subject to AVS, and the employer contributes 2%. Our benefits are pretty good, but might not be comparable to a bank.

It's also true that our risk profile and claims experience is low. The average age of our staff is 36, average seniority is 5 years, and many staff don't have dependents.

By the way, the premiums are not always spent only on the insurances. In our LPP, total annual premiums are a little over 1%, and the rest used to build the pension reserve, or boosts the annual interest rate applied to members accrued savings.