Part-time work has become the norm for many people in Switzerland. But few are aware of the consequences and specific challenges with regard to occupational pensions.
It’s high time to shed some light on the issue and offer some concrete tips on how part-time employees can minimise disadvantages in their pension provision.
You’ve probably heard about pension gaps. As a part-time employee with more than one employer, you are even more susceptible to this risk and should always keep an eye on your entire pension situation. The distinction between primary and secondary occupations is a key factor here. Your primary occupation is usually insured in the pension fund, while secondary occupations often are not subject to the OPA obligation. This can result in substantial disadvantages, as you may not have any occupational pension at all.
The salary level in your primary and secondary occupation plays a role in whether you are subject to the OPA obligation. The coordination deduction as per the OPA obligation deducts a fixed amount from your salary – regardless of whether you work 40% or 100%. If you have multiple part-time jobs with different pension funds, the coordination deduction is deducted in each case, which results in a lower pensionable salary and lower contributions. This, in turn, can have a seriously negative impact on your future pension.
Pension planning is critically important, particularly for part-time employees. Through early, comprehensive planning, you can make sure that you will be financially secure in old age, benefit from a sufficient pension and enjoy your life after your career with the comfort of financial security. Take the time to look carefully at your occupational pension and take the necessary steps to secure your future.