Guaranteed benefits

Which benefits are guaranteed?

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

Benefits which are not covered by the assets of the group of insured are guaranteed. Freely disposable resources, special reserves for special measures and other reserves no longer required, together with the employers’ contribution reserves, must be written back against the insufficient cover at the level of the group of insured.

The statutory benefits due under LOB are guaranteed.

Regulatory benefits extending beyond the statutory benefits are likewise guaranteed provided that they are based on benefit circumstances to which the Vesting Law act applies. No guarantee is provided for purely voluntary benefits. The guarantee of non-compulsory benefits is confined group of insured for which compulsory enforcement proceedings were opened against the employer after 1 January 1997.

Regulatory benefits are guaranteed up to a set ceiling (Art. 56, para. 2 LOB). The ceiling depends on the determining wage and hence on the wage insured under the regulation. It has been fixed at 1.5 times the LOB ceiling 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 in to account to determine the ceiling.

Where an insured wage exceeds the ceiling, it is reduced to the ceiling and the insured persons’ account recalculated on that basis. This recalculation does not affect possible portable benefit payments or bought-in benefits. These are fully guaranteed.