Early retirement account

In case of early retirement, the retirement pension is calculated on the basis of the retirement savings capital available and the conversion rate applicable to the relevant retirement age. This results in a lower pension than would be received at the normal retirement age, as less savings capital is available and a lower conversion rate is applied at this earlier point in time.

Active insureds have the option of financing the following benefits by means of voluntary deposits in the ER account up to the time of their voluntary early retirement:

  • Retirement pension at the time of voluntary early retirement in the same amount as the insured retirement pension at age 65.

With the ER account, active insureds have the option of partly or fully compensating for the reduction of retirement benefits due to voluntary early retirement and/or financing a supplementary pension (see below). The ER account is fed by personal buy-ins on the part of insureds and by any allocations from the employer, and is subject to interest at the interest rate of the Pension Plan. The ER account falls due on retirement, disability (according to the degree of disability), death or exit from the Pension Fund.

  • Supplementary pension

Active insureds who decide to take voluntary early retirement and who do not yet receive an AHV pension can apply for a self-financed supplementary pension from the Pension Fund Swiss Re. The duration of benefits may be freely selected, but may last only until AHV benefits apply at statutory retirement age. Financing is via the newly introduced ER account for pre-financing early retirement. If no pre-financing takes place, the supplementary pension can, at the request of the insured, be financed via an immediate, lifelong reduction of the retirement pension according to the reduction rates in Appendix A to the Regulations. The amount of the supplementary pension may be freely selected, but may not exceed the maximum single person's AHV pension. The maximum pension for those in part-time employment depends on their degree of employment. The amount of the supplementary pension paid out remains unchanged throughout the duration of payment and is not adjusted in line with any AHV increases.

The ER account is fed by buy-ins on the part of insureds and by any allocations from the employer, and accrues interest at the interest rate of the Pension Plan.

Buy-ins by an insured can only be credited to the ER account if the retirement savings capital has reached the maximum amount for the Pension Plan.15

The maximum possible amount of the ER account corresponds to the sum of the following two amounts:

  • the costs of financing the difference between the projected retirement pension at the normal retirement age, whereby any surplus in the Pension Plan is not taken into account, and the early retirement pension at the desired retirement age;
  • the costs of financing the maximum supplementary pension for the chosen duration.

The maximum possible amount of the ER account is reduced by any remaining surplus from the Pension Plan and from the Capital Plan.

In case of continued insurance beyond the pre-financed retirement age, the insured retirement benefits are reduced, provided they exceed 105% of the retirement pension at the normal retirement age. Surplus savings capital in the ER account is applied as follows:

  • no interest on the retirement savings capital, no retirement credits or savings contributions
  • any residual share reverts to the Pension Fund

Interest rates

Year Interest rate

During the year 2020

0.25%

Definitive for the year 2019

4.00%
During the year 2019

0.25%