«Save when you can so you have something when you're old»
Contributions and contribution options
Every month, you and your employer pay contributions to the pension fund. The percentages are defined in the pension fund's regulations. At BVK it is possible to save even more and draw a higher pension thanks to the higher pension savings.
Making provision for yourself
The capital saved during your working life plus interest and personal purchases are used to finance your pension. This capital is accrued by payments made by you (deductions from your salary) and by your employer. At BVK it is standard that the employer contributes 60% and the employee 40%.
According to the pension regulations, the contribution percentage depends on the insured person's age. It refers to the pensionable salary, i.e. after the coordination deduction. In contrast to other pension funds, it is possible to amass huge savings with BVK. You can also decide whether you want to increase or reduce your savings contribution by two percent. The graph demonstrates the effect. The contribution option for the next year can be selected by November at the latest.
As a person insured with BVK, you can easily select your savings contribution option online in myBVK.
Savings contribution options by age
|
Age |
Employee option «Basic» |
Employee option «Standard» |
Employee option «Top» |
Employer |
|---|---|---|---|---|
|
21-23 |
2% |
4% |
6% |
6% |
|
24-27 |
3,2% |
5,2% |
7,2% |
7,8% |
|
28-32 |
4,4% |
6,4% |
8,4% |
9,6% |
|
33-37 |
5,6% |
7,6% |
9,6% |
11,4% |
|
38-42 |
6,8% |
8,8% |
10,8% |
13,2% |
|
43-47 |
8,0% |
10,0% |
12,0% |
15,0% |
|
48-52 |
8,8% |
10,8% |
12,8% |
16,2% |
|
53-65 |
9,6% |
11,6% |
13,6% |
17,4% |
|
66-70 |
4,0% |
6,0% |
8,0% |
9,0% |
Frequently asked questions regarding flexible savings with contribution variants
Employees and employers both make monthly savings contributions. At BVK, the employer finances 60% of the contributions and employees finance 40%. The accrued capital is used to finance your retirement benefits (pension or lump-sum payment). The higher your savings capital at the time of retirement, the higher your retirement benefits – and vice versa.
There are three contribution options:
a) «Basic» option (-2%)
b) «Standard» option
c) «Top» option (+2%)
With the «Basic» option, you pay two percentage points less than you would with the «Standard» option. With the «Top» option, you pay two percentage points more than you would with the «Standard» option. By default, all insured persons are assigned to the «Standard» option.
Your advantages when you select a higher savings contribution option
- Your savings grow faster – meaning your future retirement benefits grow faster too.
- If you change employer and leave BVK, the amount of savings that you can take with you increases.
- The higher savings contributions lower your net salary – reducing your income tax.
- Your savings potential increases.
- Personal buy-ins cannot be used for a lump-sum withdrawal for three years for tax reasons. Higher savings contributions are not affected by this rule.
Considerations for selecting the «Top» option
- You value having very good pension fund benefits when you are older. So you are willing to save more voluntarily. You do not mind having a slightly lower net salary.
- You want to increase your savings capital despite making an early withdrawal to purchase a home.
- You are looking for an alternative to a personal BVK pension fund buy-in.
- You can no longer make personal buy-ins because you have exhausted your buy-in potential or you have made an early withdrawal to purchase a home.
Your advantages when you select a lower savings contribution option
- Your monthly salary deductions decrease and your net salary increases.
- You can manage your personal savings rate more flexibly (3rd pillar).
Considerations for selecting the «Basic» option
- You are temporarily in a difficult financial situation.
- You put more emphasis on private pension provision (3rd pillar).
- You are wealthy and will be less reliant on pension fund benefits when you are older.
- You are aware that your pension benefits will be lower with the «Basic» option than they would be with the other options
Your advantages when you select a lower savings contribution option
- Your monthly salary deductions decrease and your net salary increases.
- You can manage your personal savings rate more flexibly (3rd pillar).
Considerations for selecting the «Basic» option
- You are temporarily in a difficult financial situation.
- You put more emphasis on private pension provision (3rd pillar).
- You are wealthy and will be less reliant on pension fund benefits when you are older.
- You are aware that your pension benefits will be lower with the «Basic» option than they would be with the other options
If you do not make a selection, you will automatically be placed in the «Standard» contribution option.
You can conveniently and quickly choose your preferred savings contribution option on our website www.bvk.ch/mybvk.
You can also change your contribution option in writing. Use the «Request change of contribution option» form and submit the signed form to us by post. The form is available on www.bvk.ch/formulare.
You must select an option by 30 November at the latest. The savings contribution option that you select will be valid from 1 January of the following year and will remain in place until you make another selection.
Please note: Changes made after 30 November will not be valid until the year after the following year.
You must change all of the savings contribution options at the same time. The selection you make always applies for all of the employment relationships insured by BVK.
Example: You select the «Top» savings contribution option from 1 January 2024.
- You have held position 1 at employer X since 2009.
- In August 2024, you begin position 2 at employer Y. You also use the «Top» option for savings through the second employment relationship.
No. BVK will inform your employer about your selection after the closing date. The new employee savings contributions will be deducted from your salary starting in January of the following year.
No. When you join, you are automatically insured through the «Standard» savings contribution option. You can only select a different savings contribution option for January of the following year (by no later than 30 November).
No. The calculation of survivor’s or disability benefits is based on the insured salary, not the amount of savings capital. In the event of death or disability, BVK will continue the contribution premiums on the basis of the «Standard» contribution option, irrespective of your selection.
Yes, for young people it’s worth it because of the interest rate effect. This will increase the savings capital that you can bring with you if you leave BVK as a result of a job change. The retirement pension will also be higher.
Existing insured persons
For the initial registration on myBVK you need your policy number and a code to activate your profile. You can order them online on www.bvk.ch/mybvk. The information will be sent by mail.
New insured persons
The policy number and code to activate your profile are on your welcome letters.
If you make your selection in writing, you will receive a confirmation by mail. No written confirmation will be sent when change was made online.