Pillar 2b

In Switzerland, the term pillar 2b is sometimes used to denote voluntary occupational pension fund contributions paid in addition to compulsory pension fund contributions. It is also used to denote the category of retirement savings represented by the Substitute Occupational Benefit Institution and some other pension funds and insurance companies which provide pillar 2 solutions which but can be accessed by self-employed individuals.

Voluntary pillar 2 contributions can be paid in to occupational pension funds under certain conditions, such as when a salary increase creates a gap between the size of contributions paid in the past and the size of contributions after the salary increase.

Voluntary pillar 2 pension funds can be subscribed to by individuals who are self-employed and therefore are not required to subscribe to an occupational pension fund. Solutions which may be categorized under the pillar 2b include solutions provided by the Substitute Occupational Benefit Institution, solutions provided by insurance companies or industry associations to self-employed individuals, and executive pension plans which close the gap between the highest possible pension from an occupational pension and a pension which actually reflects an individual’s pre-retirement income.

See also: Pillar 2a

More on this topic:
Swiss 3a retirement account comparison

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