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Old 22.07.2010, 09:41
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2nd Pillar- employee and employer?

Hi all,
I am currentely negotiating with my employer regarding my salary terms. I am trying to find out whether the 2nd pillar allowance in switzerland is something that divided equally between the employee and the employer? or whether it is something that can be negotiated???

Thank you
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Old 22.07.2010, 10:31
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Re: 2nd Pillar- employee and employer?

It depends on the pension scheme concluded by your employer with the pension institution. By law and for the mandatory coverage (from around CHF 23'000 to around CHF 85'000), it's 50/50 contributions. A scheme provide a higher coverage and also a better allocation for the non mandatory part (2/3 - 1/3 for instance). It totally depends on what your employer has concluded. As the plan is for all employees (whereas some part of the plan may be applicable to some categories of employees only), it is not possible to negotiate a special plan for you only. If your employer needs to re-negotiate the scheme, it will be for all (or for all in a specific category, like management or directors), not for you only. Schemes are also in force for a certain period of years (5 to 10 usuallys) and cannot be negotiated again before.
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Old 22.07.2010, 10:59
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Re: 2nd Pillar- employee and employer?

Thank you Syt
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Old 22.07.2010, 14:02
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Re: 2nd Pillar- employee and employer?

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It depends on the pension scheme concluded by your employer with the pension institution. By law and for the mandatory coverage (from around CHF 23'000 to around CHF 85'000), it's 50/50 contributions. A scheme provide a higher coverage and also a better allocation for the non mandatory part (2/3 - 1/3 for instance). It totally depends on what your employer has concluded. As the plan is for all employees (whereas some part of the plan may be applicable to some categories of employees only), it is not possible to negotiate a special plan for you only. If your employer needs to re-negotiate the scheme, it will be for all (or for all in a specific category, like management or directors), not for you only. Schemes are also in force for a certain period of years (5 to 10 usuallys) and cannot be negotiated again before.
This is actually not 100% correct.

By law the employer must contribute a minimum of 50% but there is nothing to stop them paying 100% of contributions.

Furthermore, a scheme can be renegotiated at any time, although some pension companies impose limits such as once per year.
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Old 22.07.2010, 18:05
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Re: 2nd Pillar- employee and employer?

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This is actually not 100% correct.

By law the employer must contribute a minimum of 50% but there is nothing to stop them paying 100% of contributions.

Furthermore, a scheme can be renegotiated at any time, although some pension companies impose limits such as once per year.
Thanks for "correction", but I don't see where your statement is different from mine...

Such contracts are of private nature and the law grants full freedom on the lenght of the contract. There is no standard (like anytime, 1 year, 5 years etc.) for renegotiation. We apparently have different experiences as I am used to see contracts usually valid for 5 years and this is exactly what I mentioned...
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Old 26.07.2010, 20:22
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Re: 2nd Pillar- employee and employer?

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Thanks for "correction", but I don't see where your statement is different from mine...

Such contracts are of private nature and the law grants full freedom on the lenght of the contract. There is no standard (like anytime, 1 year, 5 years etc.) for renegotiation. We apparently have different experiences as I am used to see contracts usually valid for 5 years and this is exactly what I mentioned...
This is what you said

"By law and for the mandatory coverage (from around CHF 23'000 to around CHF 85'000), it's 50/50 contributions"

And that is not correct. This is the minimum employer contribution. Regarding the length of the contract they are open ended but can be renegotiated any time, usually with a frequency restriction ie once per year.
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Old 31.10.2010, 22:59
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Re: 2nd Pillar- employee and employer?

Can someone help me clarify this:

Pillar 1 (AVS) covers chf 1 - 23,205 and is 10.1% of gross and 50% is paid by employer and 50% deducted from Gross Salary of the empoyee. This is a state contribution.

Pillar 2 (BVG) covers chf 23,205 - 79,560 and the pecentage contributions varies with age. On this the employer has to contribute at least 50% of this and the remainder deducted from Gross Salary of the employee. This money is put into an independent plan.

Pillar 3 is limited to a contibution of chf 6,365 for 3a (tax deductable).

Pension Contributions are allowable against Taxable Income (i.e. deducted against taxable income) to calculate your personal tax.

Anybody know where one can find what the age bands are and what the percentage contributions are on those bands?
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Old 01.11.2010, 09:45
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Re: 2nd Pillar- employee and employer?

In the statues of you pension fund which you can get from your HR department.


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Anybody know where one can find what the age bands are and what the percentage contributions are on those bands?
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Old 01.11.2010, 10:16
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Re: 2nd Pillar- employee and employer?

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Can someone help me clarify this:

Pillar 3 is limited to a contribution of chf 6,365 for 3a (tax deductible).
That was the limit a few years ago. It rises every three years or so and is now slightly higher, at CHF 6,566 p.a.

This link (or links from this page) may help but for some reason it seems difficult to get all the info you need in one place!
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