Extra-mandatory

The BVG regulates the mandatory affiliation of employees to pension funds. Mandatory insurance covers salaries between the entry threshold (CHF 22’050) and the upper limit (CHF 88’200 – as of 2023). Salary components that exceed the upper limit can be insured by the employer within extra-mandatory pension plans. The regulations of the Federal Law on Occupational Retirement, Survivors’ and Disability Pension Plans do not apply to the salary components insured on an extra-mandatory basis. Pension plans that include both mandatory and extra-mandatory benefits are referred to as enveloping.