Managing and administering pension funds requires specialist knowledge of the law, taxes, accounting, investment and communications. Pension funds therefore need to consult with experienced individuals.  

Occupational pensions became mandatory in Switzerland following the introduction of the Federal Act on Occupational Retirement, Survivors’ and Disability Pension Plans (BVG) on 1 January 1985 The BVG stipulates the minimum benefits payable upon retirement, death or disability. Entitlements which go beyond this minimum benefit are covered by the non-obligatory pension funds (pillars 3a and 3b).  

Specific provisions require employees to contribute to the BVG and, consequently, employers are obliged to arrange a pension plan. This means employers must set up an their own company fund or join a collective or communal foundation.  

To ensure a company pension fund’s long-term viability, the fund needs to have enough insureds and have sufficient assets, regardless of whether it acts as an autonomous pension fund, assuming all risks of longevity, death and disability itself, or as a semi-autonomous foundation that covers the risks of death and disability with an insurer. If these two basic requirements cannot be met, the recommended course of action is to join a collective or communal foundation.  

Company pension funds almost always obtain certain services from external providers. Some of these services are mandatory, others are voluntary.