What's the difference: mandatory & non-mandatory contributions?

The Foundation: Mandatory Contributions (OPA Minimum)

The mandatory pension provision is the legally required foundation of pillar 2. It is based on the Federal Act on Occupational Retirement, Survivors' and Disability Pension Plans (OPA). All employees with an annual salary of at least CHF 22,680 (as of 2025) are mandatorily insured.

These contributions cover the statutory minimum benefits for old age, death, and disability. The conditions for these are set by the Federal Council. This ensures a uniform and secure basic provision for everyone.

TIP

Important terms explained simply

Minimum interest rate: The minimum interest rate set by the Federal Council at which your mandatory retirement savings must be credited annually.
Conversion rate: The legally defined percentage used to convert your saved retirement assets into a lifelong pension upon retirement.

More Benefits, More Flexibility: Non-Mandatory Contributions

Many pension plans go beyond the legal minimum and offer more comprehensive coverage through non-mandatory contributions. These additional benefits improve the pension situation for insured persons.

Non-mandatory benefits arise when:

Salary components above the maximum of CHF 90,720 are insured.
The savings contributions are higher than legally required.
The pension fund grants a higher interest rate than the minimum rate.

In contrast to the mandatory scheme, pension funds can design the conditions for the non-mandatory part more flexibly. This allows for higher old-age pensions and better protection in the event of disability or death.

A Practical Example

A simple comparison clearly shows the difference:

Scenario	Statutory Minimum	Non-Mandatory Solution
Annual salary	CHF 95,000	CHF 95,000
Insured salary	CHF 64,908 (maximum insured salary in the mandatory scheme)	CHF 85,000 (example according to pension fund regulations)
Savings contribution (assuming 10%)	CHF 6,490.80 per year	CHF 8,500 per year

The result: With the non-mandatory solution, over CHF 2,000 more flows into the retirement provision annually in this example, which noticeably increases the future pension.

A Direct Comparison of the Differences

Feature	Mandatory Part	Non-Mandatory Part
Basis	Statutory (OPA)	Pension fund regulations
Insured salary	Salary components from CHF 22,680 to CHF 90,720	Salary components over CHF 90,720 and/or higher savings contributions
Benefits	Legally defined minimum benefits	More comprehensive benefits possible
Conditions	Centrally determined by the Federal Council	Determined by the respective pension fund
Flexibility	Low	High, depending on the pension plan

NOTE

How are your assets managed?

Pension funds manage mandatory and non-mandatory assets differently. With the split method, both pots are managed separately, which offers maximum transparency. With the enveloping method, they are combined. Check with your pension fund to see which method is used.

How to Optimise Your Pension Provision

For insured persons:

Check your insurance certificate: Analyse your current insurance certificate. How high is the non-mandatory portion?
Consult the regulations: Find out about the exact conditions (e.g., interest rate, conversion rate) in your pension fund's regulations.
Use advisory services: Do you have questions? Contact your pension fund for a personal consultation.

For companies:

Analyse your pension plan: Check whether your current pension plan still meets your company's objectives (e.g., being an attractive employer).
Cost-benefit comparison: Compare the costs of higher contributions with the benefits for your employees (higher pension, better coverage).
Optimise your solution: Let us advise you on how to specifically improve your pension solution.

Your Pension Provision with Tellco

At Tellco, we value transparency. You can find all the details about your personal benefits, including the breakdown into mandatory and non-mandatory portions, in your insurance certificate. As an insured person, you have access to your data at any time via the ePlix portal. Employers can manage all relevant information and changes easily and efficiently via iTellco.

Do you have questions about your pension solution or would you like an analysis of your current situation? We are here to help. Simply contact us.

_{Legal Notice: The content provided in this Knowledge center is intended solely for general informational purposes. It does not constitute binding information, does not replace legal, tax, financial or any other professional advice, and does not contain any recommendation to enter into, amend, or terminate contracts.

The information is prepared with due care and updated regularly. Nevertheless, the companies of the Tellco Group do not assume any guarantee for the accuracy, completeness or timeliness of the content. The only authoritative sources are the applicable legal provisions, the relevant regulations, and the official product and contract documentation, including individual contracts and the pension plans of the respective responsible company.

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