BVK is updating certain aspects of its regulations for the year ahead. While some of these updates merely serve to bring them in line with the Old-Age and Survivors' Insurance (OASI) reform, we are also able to offer innovative and appealing new solutions in a number of other areas.
Here is an overview of the amendments that will enter into force as of 1 January 2024:
(Please note: this page is updated and added to on a regular basis. It is not yet possible, for example, to simulate the changes in myBVK. This page will be updated as soon as this can be done.)
Probably the most positive change is the introduction of two new pension models. "Dyna" and "Kombi" are being added to the existing "Flex" (capital withdrawal or partial capital withdrawal) and "Norm" (standard pension as before) models. The choice of a particular model must be made before retirement or before the first step of partial retirement, and in the case of partial retirement then also applies to all further steps.
In the case of the "Dyna" model, the assumption is that you will become more active immediately after retiring, and that you will therefore require more money to maintain your lifestyle. Your level of activity, and therefore the amount of capital you require, falls over time.
Those who opt for this model receive a more substantial pension that is then gradually reduced until they reach the age of 75. From then on, the pension they receive remains the same until the end of their life, and is only slightly lower than a standard pension.
In the case of the "Kombi" model, you receive a one-off cash lump sum when you retire. You could use this capital to make a big purchase or pay off your mortgage, for example. The entire pension from retirement to the age of 75 is calculated, and paid out in full or in part as a lump sum. From the age of 75, you receive a standard pension until the end of your life.
Under the "Flex" model, the responsibility and risk associated with the capital lie entirely with the pension recipient. Under the new models, on the other hand, the life-long pension is guaranteed. Also, in contrast to the lump sum or partial capital withdrawal of the savings capital, the two models preserve both the bridging benefits and the survivors' benefits. "Plus" (choosing a higher conversion rate at the expense of the survivors' benefits) remains an option. This model, which BVK has been offering for many years now, is more frequently chosen by women, and mainly benefits single people or those in partnerships with dual incomes.
Other changes in the overview
Until now, the "Basis", "Standard" and "Top" contribution options could be registered once per year, by the end of November. The option chosen then applied from 1 January, until a new selection was made. It is now also possible to choose contribution options as of the middle of the year. Making a selection by the end of May causes the savings plan to change as of 1 July.
- The term "normal retirement age" goes into retirement as of 31 December 2023. We now use the term"reference age", which is 65 for both men and women.
- BVK already offered the option of retiring in three stages. A portion of the pension savings can now be withdrawn at all three stages. Until now, this was only possible at two of the three stages. (PLEASE NOTE: Employees of the Canton can still only retire in two stages.) Incidentally, the "Dyna", "Kombi" and "Plus" models mentioned above are also offered in connection with partial retirement. The choice of model must be made before the first stage of partial retirement.
- By law, the first stage of partial retirement must amount to at least 20% unless otherwise specified by your pension fund's pension regulations. Yes, BVK does specify otherwise. With us, the first stage only needs to amount to at least 10%. This figure of 10% applies to your salary, not to the employment relationship, for example.
You can make payments into your pension fund (referred to as "purchases") in order to build up your savings and boost your future pension. This is subject to a limit based on your insured salary and age. If you have fully exhausted this purchasing potential for the pension fund, you now have the option of making further purchases, specifically in the form of early retirement. This means that the pension is reduced less in the event of early retirement than without purchases. PLEASE NOTE: Your savings upon retirement may not exceed 105% of the maximum savings for retiring at the age of 65. We will draw your attention to this fact well in advance so that you can plan your early retirement. This is because otherwise BVK would be responsible for the excess amount.
Bridging benefits are financed 40% by the insured person and 60% by their employer. Until now, the insured person has paid their share by means of a 2.3% reduction in the old-age pension for life they receive from BVK after reaching the reference age. This reduction also paid off the accrued and future capital interest on the benefits (40% of the benefits)during the entitlement period.
For the insured person's share of the financing, the entire sum of the bridging benefits is now calculated until the OASI reference age is reached and deducted from the applicable savings balance. The life-long pension is calculated on the basis of the reduced volume of savings, which means that it is not adjusted at a later date.
- company for less than five years. It is now also possible to exclude the partner allowance for married people.
- In cases of age-related dismissal, the employer may now choose to only pay the full benefit if the employee has worked for the company for at least five years.
- All three exclusion options are cumulative.