Guaranteed benefits

Which benefits are guaranteed?

The Guarantee Fund guarantees the claims of insured persons to occupational benefits. There is no guarantee in respect of any contributions which have not been paid by the affiliated employer.

Benefits which are not covered by assets of the benefit scheme are guaranteed. Free resources, reserves for special measures and other special reserves no longer needed must be written back against the underfunding. The assets held by the foundation on liquidation can, however, be used in the first place to pay liquidation costs.

The statutory benefits payable under LOB are guaranteed.

The regulatory benefits extending beyond the statutory benefits are likewise guaranteed, provided that they are based on pension plan provisions to which the Vesting Law (FZG) applies. No guarantee is provided for voluntary benefits. The guarantee on non-compulsory benefits is confined to benefit schemes whose liquidation had not been completed on 1 January 1997 or only began after that date.

Regulatory benefits are guaranteed up to a maximum limit (Art. 56, para. 2 LOB). The maximum limit depends on the determining salary and hence on the salary insured under the regulations. It has been fixed at 1.5 times the maximum salary under LOB and currently stands at CHF 127'980.00 (status on 1.1.2019).

If an employer has several benefit plans (possibly with several different benefit schemes), all the plans for each employee are taken into account to determine whether the maximum limit is affected.

If an insured salary exceeds the maximum limit, it is reduced to the maximum limit and the insured person' s account is recalculated on the corrected basis.

Guaranteed are buy-in' s and voluntary contributions if they were possible on the basis of the purchase chart of the insolvent pension scheme in due consideration of the maximum salary according to the maximum limit (Art. 56 para. 2 LOB). Current pensions are guaranteed up to 70 % of the maximum limit.