Explanation of important terms
A benefits case occurs when a person reaches retirement age, becomes disabled, or dies.
Your BVG age is calculated by subtracting your birth year from the calendar year.
Today's date: 01.01.2010
Date of birth: 21.11.1950
Actual age: 59
BVG age: 60
BVG occupational benefits
The Federal Law on Occupational Retirement, Survivors' and Disability Pension Plans (BVG) defines the following occupational benefits:
- Disability pension
- Disabled person's child's pension
Occupational benefits fund regulations
Every occupational benefits institution issues its own regulations that define the scope of its insurance.
All pension fund regulations must specify at least the following:
- The range of benefits (e.g. on retirement, disability, death).
- The way that benefits are financed (e.g. annually, quarterly, with payments in arrears).
- The conditions for entitlement (e.g. duty to provide support)
- The various pension plans (BVG plan, plan for managers).
- The various groups of insured persons (e.g. employees, managers)
The personal certificate (which is also known as a pension certificate or pension fund certificate) serves information purposes and contains all the important information about your insured benefits under the occupational benefits program.
Promotion of home ownership
The home ownership promotion program allows you to withdraw amounts in advance or pledge your retirement assets in order to finance owner-occupied residential property.
Retirement assets are the amount that accrues in your occupational benefits account under a Pillar 2 plan. The available assets consist of:
- The individual retirement credits.
- The vested benefits brought into the fund.
- Amounts paid into the account by the employer and/or from a benefits purchase.
- Interest earned on these amounts.
- Surplus portions.
The amount of your mandatory retirement assets is determined solely by the retirement credits and amounts that are paid into the account pursuant to the minimum BVG provisions, plus interest. The minimum interest rate is set by the Federal Council.
The retirement capital equals the retirement assets at the time of retirement. You can find your estimated retirement capital on your pension fund certificate. It is a projection of the available retirement assets that is based on your current pensionable salary, the regulatory retirement credits, and the current guaranteed interest rates.
- Retirement pension
- Retired person's child's pension
You can calculate your annual retirement pension by multiplying the retirement assets on the retirement date by the conversion rate valid at that time.
- Widow's or widower's pension
- Single payment for widows or widowers
- Orphan's pension