BVG/LPP definition
Since January 1, 1985, the Swiss Federal Law on Occupational Retirement, Survivors and Disability Pension Plans (BVG) has required employers to guarantee their employees insurance coverage with a recognised pension fund.
This law lays down minimum compulsory benefits (mandatory BVG), but pension funds may also offer additional benefits (supplementary BVG) in their regulations. It is essential to refer to your employer's pension fund regulations to determine your insurance coverage.
Occupational pension provision or 2nd pillar aims to ensure an adequate standard of living for the elderly, disabled or in the event of death by supplementing 1st pillar benefits (AVS and AI) to reach, ideally, 60% of the insured person's last salary.
