Summary: Continued Insurance Under Art. 47a BVG

With the introduction of Art. 47a BVG, individuals over 58 who leave their mandatory occupational pension due to employer termination can continue their coverage at their own expense. This aims to ensure that these individuals retain their entitlement to a pension upon retirement and maintain their protection in case of death or disability.

Requirements for continued insurance under Art. 47a BVG:

• Termination must be initiated by the employer.
• Departure from the mandatory occupational pension system.
• Possible from the age of 55 with certain pension funds.

Declaration of Interest:

Employees must actively notify their employer of their interest in continued insurance before leaving the job. The interest must be declared no later than one month after leaving.

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Start and Scope of Continued Insurance:

• Begins on the first day of the month following departure from employment.
• Coverage can be for both retirement savings and risk protection (death and disability) or solely for risk protection.

Who Finances the Continued Insurance in the Pension Fund Under Art. 47a BVG?

The contributions are borne by the insured person and include risk premiums and, if applicable, retirement credits for continued pension accrual.

Changes and Termination:

• After two years of voluntary continued insurance, retirement must be taken in the form of a lifelong pension, and a lump-sum withdrawal is no longer allowed.
• Continued insurance ends with new employment, personal reasons, or if there is a default on contributions.

Practical Example: Continuing Pension Coverage with a Foreign Employer Abroad After Age 58

Situation:
Mrs. Meier, 60 years old, is terminated by her Swiss employer at the end of July and plans to move abroad for a new job starting in August. She wishes to continue her occupational pension under Art. 47a BVG.

Procedure:

• Check continuation options with the current pension fund: Mrs. Meier checks with her current Swiss employer’s pension fund to see if continued coverage is possible. Since her vested benefits cannot be transferred to a BVG-compliant pension fund abroad, continuation must occur with her last pension fund.

• Meeting the requirements: The conditions for continued insurance under Art. 47a BVG must still be met:

  • Termination by the Swiss employer.
  • Departure from the mandatory occupational pension.

• Early review: It is recommended that Mrs. Meier review the pension fund regulations early and contact the pension fund for precise clarification. She confirms all details regarding contributions and coverage with her pension fund.

• Consequences of capital withdrawal: Mrs. Meier must also consider the consequences of withdrawing capital from the pension fund either abroad or before moving. This includes understanding the tax implications in both her current and future country of residence.

Implementing Continued Insurance Under Art. 47a BVG When Moving Abroad:

• Mrs. Meier applies to continue her coverage with her previous pension fund.
• She decides to continue either full coverage (at least covering the risk premiums and optionally the full or partial retirement contributions).
• After moving abroad, Mrs. Meier continues to pay the necessary contributions to her previous pension fund to avoid a gap in coverage.
• A capital withdrawal is no longer possible after two years.

Note:
Early contact with the pension fund and careful planning are essential to ensure that Mrs. Meier receives appropriate tax advice and meets her needs.

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Here are the links to the largest pension funds for a comparative analysis of regulations:

• Back Payments Could Become Possible | Tages-Anzeiger
• Swiss Life
• PKG
• Vita / Zurich Insurance
• Foundation for Substitute Occupational Benefit Institution
• Helvetia
• ASGA Pension Fund
• Basler Insurance