Continued insurance

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Continued insurance in the Pension Plan upon termination of employment contract by the employer

Under the BVG, from 1 January 2021 special protection will be provided for employees aged 58 or over:

An employee who is insured with a pension fund and who loses his job after reaching the age of 58 (because he is dismissed), automatically leaves the pension fund today and must have his retirement assets transferred to a vested benefits account.

With the introduction of Art. 47a BVG, this employee can remain subject to his previous pension fund. He has the same rights as the other insured persons (interest, conversion rate, pension). Persons who lose their job shortly before reaching retirement age are therefore now entitled to continue their occupational pension scheme and can thus retain the right to receive a pension.

The following conditions have to be met for you to qualify for continued insurance pursuant to Art 16B:

  • You must be 58 or older by your last day of work under your employment contract
  • You have to provide proof that your employment contract was terminated by your employer
  • You have to apply for continued insurance in writing before your notice period ends and also provide proof of termination by your employer. The Pension Fund must receive your completed and signed application form (link) no later than your last day of work under your employment contract.

Important: If you retire early at the request of the employer, you are not qualified for continued insurance, as you cannot make any further savings contributions to the pension fund as a pensioner.

You have a choice between a full insurance (saving and risk contributions) and a risk insurance only (only risk contributions).

For continued insurance, you will be liable for the employee and employer contributions.

For the employee contribution portion, you must select a category option for your retirement savings contributions when your continued insurance begins. You cannot change the category later.

Contributions as % of insured salary for full insurance, by category option

Contribution category

Employee savings contribution

Employer savings contribution

Total savings contributions

Risk contribution

Total contributions

1

9.50%

18.50%

28.00%

4.00%

32.00%

2

4.80%

18.50%

23.30%

4.00%

27.30%

3

0.00%

18.50%

18.50%

4.00%

22.50%

Contributions as % of insured salary for risk insurance only

Employee savings contribution

Employer savings contribution

Total savings contributions

Risk contribution

Total contributions

0.00%

0.00%

0.00%

4.00%

4.00%

When you apply for continued insurance, you will select, once, the amount of the insured salary you wish to insure.

Your insured salary is the amount you select when your continued insurance begins, and it cannot be changed later.

Your continued insurance ends if you:

  • Terminate your continued insurance with 60 days' notice. You are free to terminate your continued insurance at any stage.
  • Are in arrears on paying the contributions. You are in arrears if you fail to pay the contributions within 30 days of the invoice date.
  • Reach the normal retirement age, which is 65 for men and women alike.
  • Are entitled to a temporary disability pension. If you are entitled to a partial disability pension, continued insurance ends only for the disability portion of the coverage.
  • Die before reaching normal retirement age.
  • Join a new pension fund and more than two-thirds of your leaving/vested benefits are transferred to the new pension fund.

If continued insurance is terminated after age 58 for reasons other than disability or death, you are entitled to request early retirement.

When you join a new pension fund, the Pension Fund Swiss Re transfers your leaving/vested benefits to this new pension fund.

If you have had more than two years of continued insurance, applicable law prohibits drawing or pledging leaving/vested benefits to purchase residential property and drawing your retirement benefits from the Pension Plan and the ER Account in any form other than a pension. By contrast, the savings capital from the Capital Plan is always paid out as a lump sum, per the Regulations.