How secure is money in a Swiss pension fund?

How your pension fund money is protected

Occupational pensions – also known as pillar 2 or by the abbreviation for the Federal Act on Occupational Retirement, Survivors’ and Disability Pension Plans (OPA) – are a central pillar for a financially secure life after retirement. It is therefore both understandable and important to ask how secure your accumulated capital is. In Switzerland, a robust, multi-level system ensures that your retirement savings are protected in the best possible way.

A robust system with three levels of protection

The security of your pension assets is based on three essential pillars: strict legal regulations, comprehensive independent supervision, and a national guarantee fund for emergencies.

1. Strict legal framework for stability

The law sets clear rules for pension funds on how to handle the money entrusted to them. Two principles are central to this:

• Full funding: A pension fund must have sufficient assets at all times to cover all its current and future benefit commitments. In simple terms, for every franc you are entitled to for your pension, there must be a corresponding franc in assets.
• Prudent investment of assets: The money must be invested securely, profitably, and with an appropriate distribution of risk. The law requires broad diversification of investments to minimise risks – in line with the principle of not putting all your eggs in one basket. This protects the assets even in turbulent market phases.

2. Independent supervision by experts and authorities

Compliance with the law is seamlessly monitored. Every pension fund is regularly audited by several independent bodies:

• External auditor: They check the accounting, asset investment, and organisation annually – similar to a listed company.
• Expert for occupational pensions: A recognised pension fund expert periodically checks whether the fund is financially sound and can meet its long-term obligations.
• State supervisory authority: Every pension fund is subject to a cantonal or regional supervisory authority that oversees its management. The supreme supervisory body is the federal Occupational Pension Supervisory Commission (OPSC).

3. The LOB Guarantee Fund: A strong safety net for emergencies

Even in the unlikely event that a pension fund becomes insolvent, there is a strong safety net: the LOB Guarantee Fund. This national guarantee fund ensures that the statutory minimum benefits of the insured persons are protected and paid out in all cases.

A concrete example: If a pension fund were to become insolvent, the Guarantee Fund would step in and secure your mandatory retirement savings up to a legally defined maximum.

Transparency and security at Tellco pk

Beyond the legal requirements, we at Tellco focus on maximum transparency and responsible governance to earn your trust. Our supreme body, the Board of Trustees, is composed equally of employer and employee representatives. This ensures that all decisions are balanced and made in the interest of the insured persons.

We disclose our investment strategy and key financial data. You can find more information on the solid coverage ratios of our pension solutions on our page with the key figures. You can see how we manage your money at any time.

Depending on your risk appetite and investment horizon, we also offer different pension solutions such as the proven and stability-oriented Tellco pk PRO or the growth-oriented Tellco pk PULSE.

Do you have a question about your personal situation? Our experts will be happy to help you.

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