Every year you receive your pension certificate from your employer showing your projected benefits in the event of retirement, disability or death. However, technical terms like “insured salary” or “purchase options” can often be difficult to understand. We explain how to read your pension certificate correctly in order to keep an eye on your future retirement pension and benefits.
How do I read my pension certificate correctly?
General information and salary data
The top part of the pension certificate contains basic information about the insured person and the contract. This includes name, date of birth, AHV/AVS number, marital status and current level of employment.
Usually, the applicable pension plan is also listed in the top section of the pension certificate. Many pension funds offer flexible models under which you can determine the amount of your personal savings contributions yourself. There are usually several contribution options to choose from, e.g. Basic, Standard or Top. The monthly savings contribution you pay into your occupational pension varies depending on the pension plan selected. With a higher contribution option, you actively increase your retirement benefits.
The annual salary and the insured salary are also shown. The annual salary corresponds to the annual salary subject to AHV/AVS contributions that is reported by the employer and should match the gross salary in your annual salary statement. The insured salary is lower, as a coordination offset is usually defined and deducted. The coordination offset is bvg-koordinationsabzug in aktuelles-jahr. The purpose of this deduction is to avoid double insurance – after all, part of your income is already covered by the first pillar (state benefits (AHV/AVS) and disability insurance (IV/AI)). Only the portion in excess of that is insured in the occupational pension scheme and forms the basis for calculating your pension fund benefits.
Retirement savings
The balance of your current retirement savings is shown under “retirement savings”. This is the capital actually accumulated in your pension fund on the date of issue.
Financing
The monthly savings contributions and contributions for risk benefits and other costs are borne by you and your employer. Your share is deducted directly from your gross salary, while your employer contributes the remainder. The savings contribution – i.e. the portion of the contributions used for retirement provisions – goes directly towards your personal retirement savings and is a key factor in determining how much you accumulate.
Contributions for risk benefits are also charged. These are used to finance the insured benefits in the event of disability or death. In addition, a portion of the contributions is used to cover the pension fund’s administration costs.
Retirement benefits (i.e. retirement pension)
This section of the pension certificate shows the projected retirement benefits – for different retirement ages, generally between 60 and 65. Your retirement savings will earn interest annually until you retire. Thanks to the compound interest effect, your assets will grow of their own accord over the years, in addition to the contributions you pay in.
The retirement savings shown are forecasts. They indicate the amount of capital you can expect to have accumulated at the time of your retirement. The calculation is based on the current accumulated retirement savings and future retirement credits – as well as the assumption that neither your salary nor your level of employment will change.
Depending on the employee benefits institution, the retirement benefits are listed with or without interest. The projected interest rate used is an assumption about the annual interest rate on the assets – it is not guaranteed.
In addition to the lump sum, the annual pension is also listed. This figure indicates the lifelong pension benefits you will receive from retirement onwards and is calculated using a conversion rate. The conversion rate may change up to the time of retirement, for example due to changes in the law or the pension plan.
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If you need assistance with your pension provisions, do not hesitate to get in touch with us.
Benefits in the event of disability
If you become disabled, you are entitled to a disability income. You will find the amount of this annual income in the “Benefits in the event of disability” section of your pension certificate. You receive the full disability income if you are at least 70% disabled as defined by the Federal Disability Insurance (IV/AI) and the waiting period has expired. The waiting period for the disability income is usually 12 or 24 months. As a rule, you are entitled to a waiver of premiums after three months.
In the case of partial disability, the income is paid on a pro rata basis in line with the degree of disability, as defined in the pension fund regulations. Benefits are paid from a degree of disability of 25%. There are also pension funds that only pay benefits from a degree of disability of 40%.
In addition, you receive a disabled person’s children’s benefit for each child, at least until they reach the age of 18 – or 25 if they are still in education.
Benefits in the event of death prior to retirement
If you die before retirement, your beneficiaries will receive the benefits shown in the pension certificate. A spouse’s or unmarried partner’s pension is paid to the entitled spouse or unmarried partner.
Children up to the age of 18, or 25 if they are still in education, are entitled to an orphan’s benefit. Any additional lump-sum death benefit is shown on the pension certificate.
Tip: If you are in a cohabiting relationship, i.e. you and your partner are not married, it is recommended that you register your partner as a beneficiary in writing with your pension fund.
Purchase and repayment
Under Purchase options, you can see how much you could voluntarily pay into your pension fund to improve your pension provision. Such pension fund purchases offer not only better pension benefits but also tax advantages. Find out more about 2nd pillar purchases here.
Encouraging home ownership
Under the scheme for encouraging home ownership, you are permitted to use a portion of your retirement capital to finance residential property that you will live in yourself. Your pension certificate shows the maximum early withdrawal you can currently make for home ownership purposes. Up to the age of 50, this amount usually corresponds to the total vested benefits. After the age of 50, you can withdraw either half of the current vested benefit entitlement or the amount that was available when you were 50, whichever is higher.
Entitlement to vested benefits
The vested benefits are the amount that you can take with you when you leave the pension fund – be it when you change jobs or on leaving Switzerland.
If you terminate your employment relationship and switch to a new employer, your retirement capital will be transferred to your new employer’s pension fund. It is important to contact your new pension fund at an early stage to ensure a smooth transition.
If you leave your company without taking up a new job straight away, you need to transfer your accumulated pension fund assets to a vested benefits account or vested benefits policy. This step is essential to secure your retirement capital. Find out more about vested benefits accounts here.
What do the terms “mandatory benefits” and “supplementary benefits” mean on the pension certificate?
On the pension certificate, the retirement savings are often divided into two parts: the mandatory and the supplementary savings. This distinction is important because it shows which benefits are guaranteed by law and which go beyond that amount.
Mandatory benefits (defined by the BVG/LPP)
This part of the pension fund is regulated by law and constitutes the minimum level of occupational benefits. It is based on the portion of your salary between the coordination offset (aktuelles-jahr: zweite-saeule-minimum-jahreslohn) and the maximum insured limit (aktuelles-jahr: zweite-saeule-maximum-jahreslohn). The mandatory portion ensures that you receive legally guaranteed minimum benefits in the event of retirement, disability or death.
Supplementary benefits (voluntary additional benefits)
All amounts that exceed the statutory minimum requirements are part of the supplementary portion.
These include, for example:
- salary portions above zweite-saeule-maximum-jahreslohn (as at aktuelles-jahr)
- salary portions below the entry threshold, or if no entry threshold has been defined
- voluntary supplementary benefits provided by the employer
- voluntary purchases
Pension funds determine the rules for the supplementary portion themselves, for example by applying lower conversion rates or offering better risk benefits. The supplementary portion often makes up a large part of the pension fund assets. The benefits are not prescribed by law, which leads to differences between the pension funds – for example, in terms of pension payments, interest or purchase options. Check the conditions in your pension certificate.
Mandatory benefits versus supplementary benefits
| Criterion | Mandatory benefits (BVG/LPP) | Supplementary benefits |
| Basis | Legally required (BVG/LPP) | Voluntary supplementary benefits provided by the pension fund |
| Salary range | Salary portion between zweite-saeule-minimum-jahreslohn and zweite-saeule-maximum-jahreslohn (as at aktuelles-jahr) | Salary portions above zweite-saeule-maximum-jahreslohn or supplementary contributions |
| Regulation | Strictly regulated by law | Regulated by the pension fund (can be flexible) |
| Conversion rate | 6.8% (statutory minimum rate, as at 2025) | Usually lower |
| Protection | Guaranteed by law (e.g. in the event of termination of employment or divorce) | No legal protection – benefits may vary |
| Transparency | Uniform and clearly regulated | Differences depending on the employer / pension fund |
| Objective | Minimum coverage in the event of retirement, disability or death | Improvement in occupational pension cover, e.g. through better pension benefits |
FAQs – frequently asked questions about pension certificates
The pension certificate – also known as the pension fund statement – contains all the important information you need to know about your occupational pension provision (2nd pillar). It provides a structured overview of your prospective benefits in the event of retirement, disability and death.
As a rule, your pension certificate is sent to you directly by your employer once a year – usually at the beginning of the year. Regardless of this, you can request the certificate from your pension fund at any time or, if available, download it via your employee benefits institution’s online portal.
Usually once a year, often at the start of the calendar year, or whenever the policy is altered, such as in the event of a change of salary, divorce or early withdrawal.
This is the estimated pension you can expect on retirement – based on current data and assumptions regarding your salary and level of employment.
When you change jobs, your accumulated pension plan savings are transferred to your new employer’s pension fund or – if you do not yet have a new job – to a vested benefits account or vested benefits policy. Please note that this process is not automatic. You have to actively initiate the transfer.
The conversion rate determines the amount of the annual pension that you receive from your accumulated retirement savings. This rate is currently 6.8% for the mandatory BVG/LPP savings (as at 2025).
The insured salary equals the annual salary minus the coordination offset (aktuelles-jahr: bvg-koordinationsabzug). This amount usually forms the basis for calculating the benefits.
Mandatory benefits are the minimum benefits prescribed by law; supplementary benefits include additional, voluntary benefits provided by the pension fund.
The annual disability income, children’s benefits and waiver of premiums, depending on the degree of disability.
In the section entitled “Benefits in the event of death” – this lists pensions or lump-sum benefits for spouses, unmarried partners and children.
The maximum possible purchase amount is usually listed on the pension certificate in the “Pension fund purchases” or “Voluntary purchases” section. This amount is the additional contribution you can pay into the pension fund to improve your retirement benefits. Not only can such purchases increase your future pension, they can also have tax advantages.
Yes, through the encouraging home ownership scheme – the possible early withdrawal is shown on the certificate.
It is a two-page document with tables and figures relating to salary, retirement savings, projected pensions and risk benefits.
What does a pension certificate look like?
Tip: Check your pension certificate regularly
Make sure you take the time once a year to go through your pension certificate carefully – for example, when you are filling in your tax return. You should check the following points:
- Is the reported salary correct?
- Are voluntary purchases possible?
- Is your partner registered as a beneficiary? (especially important for cohabiting partnerships)
- Are your current risk benefits (for disability or death) appropriate for your life situation?
Questions about the pension certificate?
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Information sheet on the pension certificate
A step-by-step guide to the pension certificate
