The Swiss pension system is based on three main principles, or “pillars”:
1. Alters- and Hinterlassenenversicherung (AHV/IV) [Old-age and widows’ pension/bereavement allowance]
In Switzerland, you are legally obliged to pay old age pension and disability insurance
contributions. Your employer deducts these contributions from your wages and they are paid into
the Ausgleichkasse [social security compensation fund] together with the employer‘s contributions.
2. Berufliche Vorsorge (BVG/Pensionskasse) [work pension provision]
The Berufliche Vorsorge (BV) [work pension scheme] is linked to the condition of gainful employment.
Berufliche Vorsorge is designed to ensure that pensioners are able to enjoy to a certain extent the living
standards to which they have been accustomed. Information on BVG is provided in our information brochure:
SWISS CAPS AG’s insurance scheme is Winterthur Columna.
3. Private Pension Provision
Private pension provision is optional and only possible for Aufenthalter [those with permission to live
and work in Switzerland]. It is encouraged by the state through tax benefits.
Information at:
www.winterthur.com