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What is the pension fund coordination deduction?
The coordination deduction is a key component of occupational pensions. It ensures that benefits from the pension fund (pillar 2) are optimally aligned with those from the OASI/DI (pillar 1). This means only the portion of your salary not already covered by the OASI is insured, preventing double insurance and ensuring fair, efficient retirement savings.
What is the purpose of the coordination deduction?
The Swiss pension system is based on three pillars that build on one another. Pillar 1 (Old-Age and Survivors' Insurance, OASI / Disability Insurance, DI) covers basic needs. Pillar 2, the occupational pension (OPA), builds on this and is intended to enable you to maintain your accustomed standard of living.
The coordination deduction exists to prevent salary components already covered by OASI/DI from being insured twice. This amount is subtracted from your gross annual salary. The result is the coordinated salary – the portion of your salary on which you and your employer pay pension fund contributions.
NOTE
Key terms explained simply
- Entry threshold: The minimum annual salary from which insurance in the pension fund is mandatory.
- Coordination deduction: The amount deducted from your annual salary to avoid double insurance on the portion already covered by OASI.
- Insured salary: The portion of your salary that remains after the coordination deduction, on which your contributions are calculated.
- OPA upper limit: The maximum salary component insured under the mandatory scheme.
How is the insured salary calculated?
The calculation follows a clear formula based on legally defined key figures, which are reviewed annually by the Federal Council (as of 2025):
- Entry threshold: CHF 22,050
- Coordination deduction: CHF 25,725
- OPA upper limit: CHF 88,200
- Minimum insured salary: CHF 3,675
Calculation examples:
| Your annual salary | Employment level | Calculation | Your insured salary |
|
CHF 85,000 |
100% |
CHF 85,000 - CHF 25,725 |
CHF 59,275 |
|
CHF 50,000 |
80% |
CHF 50,000 - CHF 25,725 |
CHF 24,275 |
|
CHF 35,000 |
50% |
CHF 35,000 - CHF 25,725 |
CHF 9,275 |
Your savings contributions for retirement, as well as the premiums for risk insurance (death and disability), are calculated based on this insured salary.
The fair solution for part-time work
A fixed coordination deduction can be disadvantageous for part-time employees, as it significantly reduces their insured salary. To ensure fair pension provision for all employment models, many modern pension funds adjust the coordination deduction according to the employment level. For example, if a person works 50%, the coordination deduction in the pension plan can be reduced accordingly. This results in a higher insured salary and thus better retirement benefits.
TIP
Check your personal figures now
You can find your individually insured salary and all details about your pension situation in your insurance certificate. With Tellco, you have digital access at any time via the ePlix online portal. Detailed explanations of all the information can also be found on our information page about the insurance certificate.
What you should look out for
Would you like to review or optimise your pension situation? These points will help you:
- Check your insurance certificate: Verify your currently insured salary.
- Compare your employment level: Ensure that the employment level recorded in your pension plan is correct.
- Analyse your pension plan: Check whether your pension fund adjusts the coordination deduction for part-time work.
- Seek advice: If anything is unclear or if you want to optimise your pension, it is worth talking to your HR department or directly with your pension fund.
Do you have any further questions?
The occupational pension is individual. If you have questions about your specific situation or would like personal advice, we are here for you. 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.
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