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26.07.2017, 10:37
| Newbie 1st class | | Join Date: Aug 2011 Location: Zurich
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| | 2nd pillar pension and risk premium costs
I have looked at other threads and I did not find much information about additional costs in 2nd pillar contributions.
I know that the cost of 2nd pillar is the savings component plus insurance premiums, but I have no idea how big of a cost these premiums are.
For the purpose of the example let's assume the following:
Annual salary: 124 675
Coordination amount: 24 675
Salary covered under 2nd pillar: 100 000
Contribution amount (10%): 10 000 annual
Employee contribution (40%): 4 0000 annual, 333 monthly
Employer contribution (60%): 6 0000 annual, 500 monthly
So the question is: on top of the monthly deduction for employee of 333 CHF how much would be added for insurance premiums?
How much higher the total 2nd pillar deduction would be?
Would it be 10%, 20%, 50%, 100%?
Thanks
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26.07.2017, 10:42
|  | Forum Legend | | Join Date: Apr 2010 Location: Verbier
Posts: 21,365
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| | Re: 2nd pillar pension and risk premium costs | Quote: | |  | | | I have looked at other threads and I did not find much information about additional costs in 2nd pillar contributions.
I know that the cost of 2nd pillar is the savings component plus insurance premiums, but I have no idea how big of a cost these premiums are.
For the purpose of the example let's assume the following:
Annual salary: 124 675
Coordination amount: 24 675
Salary covered under 2nd pillar: 100 000
Contribution amount (10%): 10 000 annual
Employee contribution (40%): 4 0000 annual, 333 monthly
Employer contribution (60%): 6 0000 annual, 500 monthly
So the question is: on top of the monthly deduction for employee of 333 CHF how much would be added for insurance premiums?
How much higher the total 2nd pillar deduction would be?
Would it be 10%, 20%, 50%, 100%?
Thanks | | | | | The insurance will be taken from the 10k, I suspect about 8k will end up being invested.
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26.07.2017, 10:53
|  | Forum Legend | | Join Date: Dec 2005 Location: Zuri Oberland
Posts: 2,764
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| | Re: 2nd pillar pension and risk premium costs
On my pension statement, the investment and insurance elements are split out
From our sample on the HR site | 
26.07.2017, 12:20
| Newbie 1st class | | Join Date: Aug 2011 Location: Zurich
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| | Re: 2nd pillar pension and risk premium costs
Thanks a lot for replies. This is great information.
Based on the two replies above it looks like the additional costs are 20-25% of what is actually invested.
I would love to get more examples. Please share if you have different experience.
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26.07.2017, 12:22
|  | Forum Legend | | Join Date: Apr 2010 Location: Verbier
Posts: 21,365
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| | Re: 2nd pillar pension and risk premium costs | Quote: | |  | | | Thanks a lot for replies. This is great information.
Based on the two replies above it looks like the additional costs are 20-25% of what is actually invested.
I would love to get more examples. Please share if you have different experience. | | | | | About all the tax relief gone up in smoke  . Then the payout is taxable, pensions are a con.
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26.07.2017, 14:00
|  | Forum Legend | | Join Date: May 2009 Location: Pfäffikon SZ
Posts: 2,641
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| | Re: 2nd pillar pension and risk premium costs
For mine it is split out:
Employee savings contribution 9%
Employer savings contribution 13%
Employer risk contribution 5.8%
All of this on base salary less co-ordination deduction.
On bonus the contribution rates are different, but the employer pays the risk side.
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26.07.2017, 14:14
|  | Forum Legend | | Join Date: Apr 2010 Location: Verbier
Posts: 21,365
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| | Re: 2nd pillar pension and risk premium costs | Quote: | |  | | | For mine it is split out:
Employee savings contribution 9%
Employer savings contribution 13%
Employer risk contribution 5.8%
All of this on base salary less co-ordination deduction.
On bonus the contribution rates are different, but the employer pays the risk side. | | | | | By law the employer must pay at least 50%, so your lucky he pays it all.
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26.07.2017, 14:36
|  | Forum Legend | | Join Date: May 2009 Location: Pfäffikon SZ
Posts: 2,641
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| | Re: 2nd pillar pension and risk premium costs | Quote: | |  | | | By law the employer must pay at least 50%, so your lucky he pays it all. | | | | | I'm aware my pension fund inputs are generous, even if the outputs have been reduced twice or three times in the 8 years I have been enrolled. The employer saving contribution is way beyond the statutory minimum.
| This user would like to thank eyebeebe for this useful post: | | 
26.07.2017, 21:43
| | Re: 2nd pillar pension and risk premium costs
For our pillar 2 plan, the risk contributions are 1% employer and 1% employee.
It's separately itemised on the payslip from the savings contributions.
Often the risk contributions are more than the annual premium.
Under our plan rules, any excess risk contributions are added to the interest rate applied to the employee savings.
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