Occupational Pension Fund

An occupational pension fund is a pension fund which is directly connected to employment. Typically, contributions made to an occupational pension fund are co-financed by the employee and their employer.

In Switzerland, occupational pension funds fall under the pillar 2a category of retirement savings. Swiss employers are required to enroll employees whose annual salary surpasses a government-dictated threshold in an occupational pension fund. The employer selects the pension fund which will be used by their employees. Contributions are paid in equal portions by employers and employees.

In many countries, occupational pension funds are not obligatory. In these countries, employers may offer enrollment in occupational pension funds as an employee benefit in order to attract talent or to ensure that their employees will be provided for after retirement.

More on this topic:
Swiss occupational pension fund comparison
Swiss 3a retirement account comparison
Swiss retirement fund comparison

Editor Daniel Dreier
Daniel Dreier is editor and personal finance expert at moneyland.ch.