Answers to your questions

Anyone who, as a result of illness or accident, is at least 25% disabled and who, at the start of the incapacity to work that led to the disability was insured by BVK, is entitled to benefits. The decision regarding the existence and degree of a disability is primarily made on the basis of an examination by a BVK medical examiner.

Yes. A distinction is made between occupational disability and employment disability.

The insured person is said to have an occupational disability if he or she is wholly or partly unable to carry out his or her previous occupation on health grounds permanently or for an extended period of time.

The amount of your disability pension is listed on your pension fund statement. In the event of full occupational or employment disability, it is 60% of the insured salary. In the event of partial disability, the pension is determined in line the degree of disability as follows:

In addition to a disability pension, those who are fully disabled will also receive a supplement of CHF 21,510 (75% of the maximum simple AHV pension) until AHV/IV payment commences.

For those who are partially disabled, the supplement will be determined on the basis of the degree of disability, and for those who are employed parttime it will be decreased in line with the level of employment as well. The level of employment before the disability is authoritative.

If the Federal Disability Insurance retroactively awards benefits, the disabled person must reimburse BVK for the supplement for the same period and in the same amount as the Federal Disability Insurance benefits.

Important:
The employee must register with the Federal Disability Insurance no later than six months after commencement of the disability. Otherwise, the entitlement to the bridging subsidy will only be available when the Federal Disability Insurance benefits commence at the earliest.

Yes. As a disabled person, you are entitled to a disabled person’s child’s pension for your children as well as for stepchildren and foster children, provided you can prove that you are responsible for supporting them. The disabled person’s child’s pension will be paid until the end of the month in which the child turns 20. For children who are still receiving training or education or who draw a full pension from the Federal Disability Insurance, the entitlement will last until completion of the training or education, but no later than their 25th birthday.

The disabled person’s child’s pension is 20% of the disability pension.

The BVK disability pension will be reduced if, together with benefits from other (domestic and foreign) social insurance schemes and any income that continues to be earned, the projected lost gross income (100%) is exceeded.

You must report any change that affects the benefit entitlement to BVK immediately. In particular, this includes:

• Change in health condition
• A benefit awarded by another domestic or foreign insurance company
• Decisions regarding a change in the degree of disability under Federal Disability Insurance, accident insurance or military insurance
• Commencement/discontinuation of employment or a change in employment income
• Births, deaths, changes in civil status and changes in foster care
• For children who are over age 20: Commencement, interruption or early end of training/education as well as the award or discontinuation of a full disability pension
• Pretrial detention, execution of sentences and measures in Switzerland or abroad

Benefits drawn without entitlement must be reimbursed to BVK

Information about the AHV contribution requirement and the amount of the AHV contributions is provided by your local AHV office or the competent compensation office. Further information can be found in AHV/IV information sheet 2.03 «Non-employed contributions to Old-Age and Survivors’ Insurance (OASI), Disability Insurance (IV) and Income Compensation Insurance (IC)» (available at www.ahv-iv.info).

Yes. However, a purchase will have no effect on the amount of the disability pension. It increases the savings capital and thus the expected retirement pension.

BVK is a pension scheme for employees in the canton of Zurich. Many political municipalities, school communities and parishes as well as public-law bodies and institutions associated with the canton can also be affiliated with BVK.

You will be enrolled in BVK if you begin a permanent employment relationship and receive an annual salary of more than CHF 22,050 (as of 1 January 2023). For positions that last less than a year, the salary will be extrapolated to one year.

Example
During a four-month appointment, you earn CHF 20,000. You will be enrolled in BVK because the annual entry threshold of CHF 22,050 is converted for four months. It is thus only CHF 7,350 (CHF 22,050 / 12 months x 4 months).

Government and court interpreters
Government and court interpreters are considered employees. They will be enrolled if they meet the financial entry threshold.

Members of authorities, e.g. municipal councillors, school board members
Members of authorities will be enrolled if their fixed basic compensation reaches the entry threshold.

Even if your income reaches the entry threshold, you will not be enrolled in the following cases:

• Your position is not permanent and lasted less than three months.
• You are engaged in secondary employment and you are compulsorily insured through your main occupation.
• You are engaged in secondary employment and in your main occupation you are self-employed («Declaration of secondary employment/main occupation» form).
• You are at least 70% disabled under federal disability insurance (IV).

The salary reported by the employer is authoritative. This includes the annual salary and regular allowances. This salary may deviate from the actual gross salary on the salary statement.

The following are not considered regular allowances
Service awards, compensation for overtime, cash payments of holiday, oneoff allowances, rewards from company suggestion schemes, attendance fees, honorariums and severance payments.

Compensation for authorities
This is generally comprised of basic compensation (flat fee), attendance fees and expenses. Only the basic compensation is considered qualifying salary.

Those who are self-employed who have not previously been registered with a pension fund are able to contribute up to CHF 35,280 (as of 2023) or a maximum of 20% of their employment income to Pillar 3a tax-free each year. After enrolling in BVK, the maximum amount is CHF 7,056 (as of 2023). To compensate this difference, the self-employed generally have the option of making tax-privileged BVK buy-ins.

The earliest one can be insured against the risks of death and disability is at age 18. The savings process for the retirement pension provision begins on 1 January of the year in which the insured person turns 21.

The insured salary is the qualifying annual salary reported by the employer (income subject to AHV), less the AHV coordination deduction. As a result, AHV/IV and BVK do not insure the same salary components. On the one hand, the insured salary is the basis for calculating the employee and employer contributions to BVK, and on the other hand it is the basis for calculating disability and death benefits.

For a level of employment of 100%, the coordination deduction is CHF 25,725 (as of 2023). For part-time employment, the coordination deduction is adjusted on the basis of the level of employment.

The benefits are financed through the employee contributions, the employer contributions and the returns on the assets (interest). The employer usually pays 60% of the contributions and the employee 40%. The contributions are deducted directly from the employee’s salary each month and transferred to BVK together with the employer contributions.

The contributions are comprised of savings contributions for the retirement pension and risk contributions for disability and life insurance.

Insured persons have a say in how much they save in retirement capital. 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.

You can change your savings contribution option every six months, as of 1 January or 1 July. In order for changes to be effective as of 1 July, you must notify us of them by 31 May, while the deadline for changes as of 1 January is 30 November. Your chosen savings contribution option will apply until you make a different choice. The savings contribution option can always be changed as of the next possible date. The easiest way to change the option is in the insured persons' portal, myBVK, where you can also see what effect it will have on your savings. Find out more about the choice of contributions here.

Upon enrolment in BVK, you are required to transfer all termination benefits from previous pension plans and vested benefit schemes. This will increase the savings used to calculate your retirement pension.

Once the termination benefits from your previous pension plan have been transferred to BVK, we can determine whether there is a pension gap. You can close any gaps by making voluntary purchases. You can find more information in the «Purchase/Persönlicher Einkauf» information sheet or at www.mybvk.ch.

From age 65, continuation of insurance at BVK is optional. There are exceptions for teachers and professors, for whom continuation of insurance from the end of the school year in which they turn 65 is optional. Would you like to continue the insurance cover and save additional retirement capital? In this case, you and your employer will continue to pay savings and any restructuring contributions on the annual salary that is subject to BVG. The amounts for risk insurance (disability, death) are no longer due.

Please note that continued insurance is only possible if you have agreed to continue working for the same employer.

Would you prefer to forgo continued insurance cover? The contribution payments will be suspended and BVK will determine your retirement benefits. You will then receive a monthly retirement pension (in addition to your salary). Please note that drawing the retirement pension cannot be deferred in this case.

If you would like to waive continued insurance cover, you must inform BVK of this by submitting the form «Waive savings insurance after reaching the normal retirement age» at least 30 days before the desired retirement date.

Please register the desired retirement date with your employer, not BVK. The end of the employment relationship will result in a pension entitlement on the first day of the following month.

The amount of your retirement pension depends on your personal savings capital. Please see your pension fund statement, which we send to you each year. You will find information about your savings capital there. In order to calculate your annual retirement pension, your savings capital at the time of retirement are multiplied by a conversion rate to determine your retirement pension for life. The conversion rate is calculated exactly for whole months and depends on the retirement age and year of birth of the insured person:

In the following circumstances, the conversion rate for the insured person may increase: Insured persons can choose between a higher old-age pension or higher survivor benefits (widow's/widower's pension, orphan's pension, etc.). This does not apply to insured persons who have already partially retired after 1st January 2019 and who are entitled to a pension (conversation rate already selected) or have already made a choice.

If you opt for a higher old-age pension, your savings balance will be at the time of retirement with a higher conversion rate of 4.89% instead of 4.66% (age 65, born 1958). They get a higher annual pension. In return, in the event of death, you will receive a lower survivor benefits. The spouse's pension, for example, then amounts to 1/3 instead of the standard 2/3 of the previous pension, which is paid to the surviving partner. How the amount of the conversion rate affects your personal pension in concrete terms can be playfully simulated on www.mybvk.ch.

You may be entitled to a bridging subsidy. The bridging subsidy is intended to compensate for a missing AHV retirement pension if you retire early. Insured persons who are employed by the canton or whose employer has not excluded payment of a bridging subsidy in their employment contract are entitled to a BVK bridging subsidy.

For more information, please read our explanation in the «Retirement pension bridging subsidy» information sheet.

You will find the necessary application form «Application for lump-sum withdrawal» on our website www.bvk.ch under «Services/Downloads/Formulare».

In addition to the application form, the following documents must also be submitted:

• Unmarried insured persons: current proof of their civil status.
• Insured persons who are married or living in a registered partnership: certified signature of their spouse or registered partner.

The amount corresponding to the buy-in, including interest, may not be drawn as a lump sum (advance withdrawal to purchase a residential property, lump-sum withdrawal upon retirement or cash payment of the termination benefits) for the next three years.

As a rule, personal pension fund buy-ins may be deducted from taxable income. This tax advantage will be retroactively disallowed by the tax authorities if application for a lump-sum withdrawal is made within three calendar years of the buy-in. We recommend that you clarify the tax consequences with the relevant tax authority in a timely manner.

Please note:
All claims against BVK will be reduced in the amount of the lump-sum withdrawal, specifically the entitlement to a bridging subsidy.

At most, retirement can be taken in three steps. Lump sum payments can be requested twice.

In the case of a partial retirement, a retirement pension is paid in proportion to the reduction in insured salary. A bridging subsidy in the amount of the reduction in the level of employment can be drawn if your employer has not excluded payment of a bridging subsidy in the employment contract (see the «Retirement pension bridging subsidy» information sheet).

Information about the AHV contribution requirement and the amount of the AHV contributions is provided by the competent compensation office. Further information can be found in AHV/IV information sheet 2.03 «Nonemployed contributions to Old-Age and Survivors’ Insurance (OASI), Disability Insurance (DI) and Income Compensation Insurance (IC)» at www.ahv-iv.info. BVK will not deduct any AHV contributions from the retirement benefits

Yes. This is subject to the condition that you commence a new job or register with the regional employment office (RAV) as unemployed. The termination benefit will be payable on the date you leave BVK. As a result, all claims to benefits against BVK by the insured person or his or her family no longer apply, including entitlement to a bridging subsidy (see «Retirement pension bridging subsidy» information sheet).

After BVK receives notification from your employer that you have resigned, BVK will send you the retirement pension application form. Please request the «Application for termination benefits» as well. The application to draw the termination benefits must be submitted to BVK in writing.

Yes, from the perspective of the pension fund it is possible to work again after taking early retirement. However, from a certain minimum income pension fund insurance is generally required again.

Yes. Any insured person can take out some or all of their savings as a lump sum when they retire ("Flex" model). Drawing capital in this way results in a pro rata reduction of bridging benefits.

If you take out 50% of your savings as a lump sum when you retire, for example, your bridging benefits will be reduced by 50%.

With the "Kombi" pension model, there is no reduction in your bridging benefits.

Bridging benefits are financed 40% by the insured person and 60% by their employer.

The amount contributed by the pensioners to the total bridging benefits to be paid before normal AHV retirement age is reached is drawn from their savings in one go before the pension is calculated.

Bridging benefits amount to 75% of the maximum basic AHV old-age pension at the time of retirement. For 2023, this is CHF 29,400, which means that the maximum amount of bridging benefits that BVK will pay out is CHF 22,050 (75% of CHF 29,400). For insured persons who are married or in a registered partnership, the bridging benefits are increased by 30% to a maximum of CHF 28,665, unless the supplement for spouses or registered partners is explicitly waived. The bridging benefits for part-time employees are reduced according to their degree of employment. This is based on the degree of employment immediately prior to retirement.

Bridging benefits are paid out until you reach normal AHV retirement age. You cannot choose how long you will receive bridging benefits. In the event of premature, age-related dismissal, you can start receiving them before you turn 60 (please refer to the "Premature, age-related dismissal" information sheet). 

Entitlement to bridging benefits lapses when you reach normal AHV retirement age, at which point they are replaced by AHV benefits. You must apply to the relevant Compensation Office for these.

In the event of early retirement or premature, age-related dismissal, bridging benefits can be paid to:

a) Insured persons employed by the cantonal administration
b) Employees of affiliated employers who have not excluded the payment of bridging benefits in their affiliation agreement.

Check whether your employer stipulates that you must have been working at the company for at least five years before bridging benefits will be paid out. If you have been working there for less than five years, you may not qualify for bridging benefits.

Bridging benefits are pension benefits paid out by BVK. They replace some of the AHV old-age pension that is not being paid out yet for insured persons who retire early (early retirement or premature, age-related dismissal). Bridging benefits are a form of replacement income that is paid out by BVK until normal AHV retirement age is reached.

The bridging subsidy is a BVK pension benefit. It helps insured persons who retire early (early retirement or early release due to age) and who would like to replace some of the missing AHV retirement pension. The bridging subsidy is a sort of replacement income that is paid by BVK until the insured person reaches the normal AHV retirement age.

The following people are entitled to a bridging subsidy in the event of early retirement or early release due to age:

a) insured persons employed by the cantonal administration
b) employees of affiliated employers that have not excluded the bridging subsidy benefit in their affiliation agreement.

The bridging subsidy is paid until the employee reaches the normal AHV retirement age. For men, the maximum claim period is from ages 60 to 65, for women, the maximum claim period is from ages 60 to 64. The claim period for the bridging subsidy cannot be freely selected. In the event of early release due to age, the bridging subsidy may be drawn before age 60 (see the «Early release due to age» information sheet). Entitlement to the bridging subsidy lapses when the insured person reaches the normal AHV retirement age. The insured person will then be entitled to AHV benefits. These must be requested from the appropriate compensation office.

The bridging subsidy is 75% of the maximum basic AHV retirement pension applicable upon retirement. For 2023, this is CHF 29,400. The maximum BVK bridging subsidy is thus CHF 22,050 (75% of CHF 29,400).

For insured persons who are married or living in a registered partnership the bridging subsidy increases by 30% to a maximum of CHF 28,665, provided the supplement for married couples or registered partners is not expressly waived. This supplement is also paid if the spouse or registered partner still works or already draws a pension him or herself. For insured persons who work part-time, the bridging subsidy is reduced according to the level of employment. The level of employment upon retirement is authoritative.

The bridging subsidy is financed 40% by the insured person and 60% by the employer.

The insured person pays his or her contribution through a lifelong reduction of the BVK retirement pension from the time they reach the normal AHV retirement age. The annual reduction is 2.3% of the total bridging subsidy that is drawn. The interest accrued during the claim period and future interest on the subsidies (40% of the subsidy) are amortised with this reduction.

Yes. In general, every insured person has the option of withdrawing some or all of his or her savings capital as a lump sum upon retirement. A lumpsum withdrawal will result in a proportionate reduction of the bridging subsidy.

For example, if you withdraw 50% of your savings capital as a lump sum when you retire, this will result in a 50% reduction of the bridging subsidy.

The request for a bridging subsidy must be submitted to BVK in writing before retirement. An application form can be found on our website under «Services/Downloads/Formulare».

We recommend that you request the bridging subsidy no later than one month before retirement. This will ensure that the bridging subsidy is paid in a timely manner together with the BVK retirement pension.

Please note:
Applications that are submitted late will be rejected.

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.

Yes. The spouse's pension is guaranteed, and is calculated on the basis of the standard pension.

Yes. The model you choose will determine the pension amount that is used to calculate survivors' benefits.

With the «Norm» and «Kombi» models, the standard pension is used, while the «Dyna» model uses the pension that is or would have been paid out at the age of 75 as a basis.

The surviving spouse is entitled to a spouse’s pension if he or she:
a) is 45 or older at the time of the spouse’s death, in which case the length of the marriage is irrelevant, or
b) has to or had to provide for at least one of the couple’s own children (even if he or she no longer has this obligation to provide for the child or children at the time of death), or
c) had to provide for stepchildren or foster children at the time of death, or
d) was drawing at least half a pension from the Federal Disability Insurance at the time of death.

If the spouse does not meet any of these conditions, a one-off settlement in the amount of five annual pensions will be paid, but no less than the savings capital.

A registered partner is treated the same as a spouse.

A marriage-like domestic partnership (cohabiting relationship) is treated the same as a marriage if all of the following conditions are met:
a) Neither party is married or in a registered partnership and they are not close relatives. Close relatives are parents, children and siblings.
b) Evidence must be provided that the domestic partnership in the same household existed without interruption for at least five years at the time of the insured person’s death. Such evidence can be provided in the form of a dated and jointly signed rental agreement or confirmation from the Residents’ Registration Office.
c) The mutual personal and financial support obligation was agreed in writing and the support agreement was submitted to BVK no later than three months after the death.

Yes, under certain circumstances. A divorced spouse is treated the same as a surviving non-divorced spouse if he or she:
a) is 45 or older at the time of the spouse’s death and
b) the marriage lasted for at least ten years and
c) the maintenance pension or lump-sum payment granted in the divorce decree has been exhausted.

Important:
The divorced spouse must register his or her claims with BVK. BVK will not attempt to determine if someone is entitled to claims.

Situation 1: Death of an active insured person before age 65
The spouse’s pension is 40% of the last insured salary. It will be paid until the date when the deceased would have turned 65 years old. After that, a new pension will be calculated. It will then be equal to two-thirds of the retirement pension that would have been available if the savings capital had been maintained until the deceased turned 65. The savings capital will accrue on the basis of the «Standard» savings contribution option.

Situation 2: Death of an active insured person after age 65
The spouse’s pension is equal to two-thirds of the retirement pension to which the deceased was entitled as of the date of his or her death.

Situation 3: Death of a disability pension recipient
The spouse’s pension is two-thirds of the disability pension. It will be paid until the date when the deceased would have turned 65 years old. After that, a new pension will be calculated. It will then be equal to two-thirds of the retirement pension that would have been available if the savings capital had been maintained until the deceased turned 65. The savings capital will accrue on the basis of the «Standard» savings contribution option.

Situation 4: Death of a retirement pension recipient
The spouse’s pension is two-thirds of the current retirement pension.

Note:
The maximum pension for surviving divorced spouses is equal to the maintenance pension granted in the divorce decree, whereby the survivor’s benefits from other social insurance programmes (in particular, AHV/IV and accident insurance) are deducted from the pension.

The entitlement to a spouse’s pension ends when the entitled person:
a) remarries or
b) enters into a registered partnership or
c) establishes a marriage-like domestic partnership.

Pension recipients must inform BVK immediately of such changes without being asked to do so.

If an insured person (an active insured person or a pension recipient) dies, his or her children will be entitled to an orphan’s pension. Stepchildren and foster children are only entitled to a pension if the insured person was significantly responsible for their maintenance.

The amount of the orphan’s pension is different for half or full orphans:

• Half orphans receive 30% of the spouse’s pension.
• Full orphans receive 60% of the spouse’s pension. If full orphans receive benefits from the other parent’s pension plan, only the half orphan’s pension will be paid.

The orphan’s pension will be paid until the end of the month in which the orphan turns 20. For orphans who are still receiving training or education or who draw a full pension from the Federal Disability Insurance, the entitlement will last until the training or education is complete, but no later than their 25th birthday.

Pension recipients must submit a certificate of training to BVK without being asked to do so.

Termination benefits are the savings capital that you have accumulated in your account at BVK. The amount is listed on your pension fund statement.

The amount of the termination benefits is equal to your available savings capital when you leave the pension fund. This is comprised of the employee and employer savings contributions, any purchases and the vested benefits as well as interest.

Termination benefits are generally due if the insured person has ended his or her employment relationship and therefore leaves the BVK.

Those who meet the following conditions are entitled to termination benefits:
a) The insured person has not turned 60 before leaving the pension fund.
b) A disability pension is not being paid.
c) The employment relationship has ended after the insured person turns 60 – but before he or she has reached the normal AHV retirement age – and the insured person commences a new job immediately or registers as unemployed with the regional employment agency (RAV).

If the insured person changes jobs, BVK is legally obligated to transfer the full termination benefits to the pension fund of your new employer. If you do not join a new pension fund, you may either have your pension assets transferred to a vested benefits account at a bank or conclude a vested benefits policy with an insurance company.

You can also maintain your occupational pension at the BVG Substitute Occupational Benefit Institution. You can find further information at www.chaeis.net or call 044 468 22 22.

Important:
If you do not send payment instructions within six months of leaving the pension fund, BVK will transfer your termination benefits to the BVG Substitute Occupational Benefit Institution (to a vested benefits account in your name).

A vested benefits account is a blocked account to which your pension assets are deposited. Pension benefits are not insured. Transferring your pension assets to a vested benefits account is recommended if you plan to transfer your savings to a pension fund at a later point. You can obtain more detailed information from your bank.

With a vested benefits policy, the pension assets are not only deposited but also insured. So the policy can be terminated early without incurring a loss. If you plan to transfer your pension assets to a pension fund after a short period of time, a vested benefits policy is less appropriate. You can obtain information from the insurance company that maintains the policy.

Yes, under certain circumstances is this possible. A cash payment means that your termination benefits are transferred to an account that is not blocked, such as a private account. If the termination benefits are transferred to an account that is not blocked, capital taxes will be due.

A cash payment is possible if:
a) You leave Switzerland permanently and do not live in Liechtenstein. The obligatory portion of the termination benefits («BVG retirement savings») may not be paid in cash if you continue to be required to be insured against the financial consequences of age, disability or death in an EU or EFTA member state. In this case, the obligatory portion will be transferred to a vested benefits account or a vested benefits policy in Switzerland. The non-obligatory portion can be transferred to a nonblocked account (e.g. a private account). If you are not required to be affiliated with the social insurance system in an EU or EFTA member state, the termination benefits may be paid out fully in cash. The insured person must present proof of this status. You can have the 2nd Pillar Central Office (www.zentralstelle.ch) clarify whether you are subject to the insurance obligation.

Important:
Cash payments are subject to withholding tax and are only made after the insured person has given up his or her Swiss residence. In all cases, confirmation of deregistration must be provided from the Residents’ Registration Office.

b) You become self-employed and are therefore no longer subject to obligatory occupational pension coverage. In this case, you must submit confirmation that you are self-employed from the AHV compensation office to BVK.

Important:
The amount corresponding to the buy-in, including interest, may not be drawn as a lump sum (advance withdrawal to purchase a residential property, lump-sum withdrawal upon retirement or cash payment of the termination benefits) for the next three years.

c) If the termination benefit is less than one of the insured person’s annual contributions.

Important:
Insured persons who are not married or living in a registered partnership must include current proof of their civil status with the request for a lumpsum payment. Insured persons who are married or living in a registered partnership need a certified signature from their spouse or registered partner.

Following termination, you will receive the «Personal Declaration» form from your employer. You can find this form on our website under «Services/Downloads/Formulare». You can use this form to submit binding instructions to us on how we should proceed with your termination benefits. Please answer all questions completely and send us the signed form at the latest by the time you leave the pension fund.