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If you work in Switzerland, you have probably heard something about the three pillars. They refer to the three different types of coverage comprising the Swiss pension system. The first pillar is the standard state pension plan that consists of various schemes such as the AHV pension (old-age and surviving dependants insurance), disability insurance (IV), compensation for loss of earned income during military service (EO) and unemployment insurance (ALV). The AHV/IV insurance is mandatory for all employees in Switzerland. The second pillar is based on occupational pension plans and accident insurance. Employees with an annual income higher than CHF 20,520 are automatically insured by the second pillar pension fund, which is provided by the employer. The self-employed can join on a voluntary

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If you work in Switzerland, you have probably heard something about the three pillars. They

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