Frequently Asked Questions (FAQ)
Please click to the question to which you would like to see the answer.
According art. 36.1 of the Regulations the surviving spouse of a deceased insuree is entitled to a spouse's pension provided they:
a) have one or more dependent children or
b) are at least 70% disabled themselves or
c) are aged 35 or over and were married to the deceased for at least two years.
Should the surviving spouse not meet any of these criteria, they shall be entitled to a one-off lump-sum payment amounting to five annual pensions.
(Remark: partners with the civil status "registered partnership" are equal to spouses by law)
The life partner designated by the insured person (different or same sex) is entitled to a survivor's pension if cumulatively
a) the insured and the beneficiary are unmarried and there are no obstacles to marriage within the meaning of Article 94 ff. ZGB; and
b) the life partner has reached the age of 35 at the time of death and has lived with the insured in a marriage-like partnership in the same household uninterrupted for the last five years up to the death of the partner; and
c) the life partner was demonstrably supported by the insured before their death, or they have demonstrably supported each other to a significant extent or the life partner has to pay for the maintenance of a child living in the common household; and
d) the life partner does not already receive a spouse's pension from a pension fund.
The declaration must be submitted during your lifetime and before you draw a retirement benefit.
Should an retiree receiving a PVS old-age pension die leaving a spouse or long-time partner entitled to PVS pension benefits, their survivor receive a survivor’s pension amounting to 70% of the deceased’s previous old-age pension.
Please note the entitlement and reduction rules in the regulations under Art. 36 and 37.
In addition to risk contributions, the employer and the employees generally pay monthly savings contributions that are credited to the employee’s individual savings capital (old-age savings). This savings capital also increases by the amount of annual interest that is credited.
On the date of their retirement, employees insured by PVS can choose between a pension or a lump-sum payment (based on the individual savings capital). They may also choose a combination of a pension and a lump-sum payment. The pension is calculated by multiplying the assets on the date of retirement by the conversion factor (currently 5.90% if the employee retires from PVS at age 65).
Example:
Individual savings capital as at the date of retirement at age 65: CHF 400'000
Conversion factor: 4.96%
Annual pension = CHF 400'000 x 4.96% = CHF 19'840.00
First, the employer must be informed of the employee’s wish to retire. In the event of early retirement, a formal notice of termination must be submitted.
At the same time, the PVS pension scheme must also be informed of the date of retirement using a specific form (available at the pension scheme management).
Insured persons who would like to receive a capital withdrawal or lump-sum payment (or a combination of a pension and a capital withdrawal) must also use the aforementioned form to make this request. The deadline for doing so is at least three months before the effective retirement date.
As part of the statutory provisions on the promotion of home ownership (WEF), insured persons who do not draw a pension generally have the option of using a certain portion of their individual savings capital resp. old-age savings to finance a home that they occupy throughout the year.
If you are thinking about taking advantage of this option, the separate ‘Mortgage/WEF’ tab contains further information along with the form to be submitted to the office.
The office can also provide you with an individual offer that shows you the extent to which your expected benefits will be reduced as a result of the early withdrawal.
In addition to early withdrawal, you have the option of pledging the individual savings capital resp. old-age savings, which has the advantage of not reducing the expected benefits as the result of an early withdrawal.
Voluntary purchases provide insured persons with the option – through additional contributions made on a voluntary basis – of investing more in their own pension and thus improving their future benefits. Voluntary purchases of this kind can also be deducted from the taxable income declared on the insured person’s tax declaration, which can lead to considerable savings.
Voluntary purchases generally require the corresponding purchasing potential (or a pension gap). You can use the annual pension statement to determine how much purchasing potential, if any, you have ("maximum purchasing amount").
In addition to the basic prerequisite of available purchasing power, voluntary purchases are subject to the following additional restrictions (not exhaustive):
- Following a voluntary purchase, all of the savings capital resp. old-age savings is blocked for three years, i.e. no capital withdrawals as a result of retirement, early withdrawals as part of the promotion of home ownership or cash disbursements as a result of permanent departure from Switzerland will be permitted.
- If an early withdrawal has already been taken as part of the promotion of home ownership, the withdrawal must first be repaid to PVS.
- Persons who have moved to Switzerland and have never been affiliated with a Swiss pillar 2 pension scheme can purchase a maximum of 20% of the insured salary per year for the first five years.