How can employers avoid contribution gaps for employees?

The employer's dual role in contribution gaps

Pension gaps arise when no contributions, or insufficient contributions, are paid into the pension fund over a longer period. The reasons for this are varied: periods of education, stays abroad, unpaid leave, or previous jobs without a pension fund connection. For your employees, these contribution gaps mean lower benefits in old age, in the event of disability, or upon death.

As an employer, you take on a dual role here: on the one hand, you are legally obligated to prevent new gaps through clean administrative processes. On the other hand, you can position yourself as a forward-thinking partner by actively supporting your employees in closing existing gaps.

1. Legal duties: Preventing administrative gaps

Your main responsibility is to correctly and completely enroll all eligible employees with the pension institution. Administrative errors can lead to substantial back payments and interest on arrears. Pay special attention to the following important points:

• Timely registration for new entrants: Register new employees who are subject to the mandatory OPA (Federal Act on Occupational Retirement, Survivors' and Disability Pension Plans) within 30 days to avoid missing contribution months.
• Correct handling of temporary employment: In Switzerland, an employment relationship is considered permanent if no fixed term has been agreed upon – regardless of the duration. Caution is also advised in cases of multiple assignments with short interruptions to correctly assess the insurance obligation.
• Proactive reporting of work interruptions: Unpaid leave or a reduction in the level of employment can lead to contribution gaps. Report such changes to your pension fund immediately.
• Seamless transition upon departure: A timely departure notification ensures that the vested benefits are transferred smoothly to the new pension institution.

2. Additional commitment: Supporting employees

Your duty of care as an employer extends beyond mere administration. By proactively addressing the issue of pension gaps, you create added value for your employees and your company.

• Create transparency: Encourage your employees to regularly check their personal insurance certificate. This document shows the existing assets and any potential for a buy-in. Employees can find more information on our info page about the insurance certificate.
• Educate about voluntary buy-ins: A voluntary buy-in is the most important tool for insured persons to close contribution gaps. Inform your workforce about this opportunity to improve retirement benefits while saving on taxes. You do not have to provide advice, but you can act as a source of information.
• Highlight the benefits for your company: Employees with solid pension provision are more financially secure and often more loyal. Your commitment to pension matters strengthens your image as a socially responsible and attractive employer.

How Tellco supports you in ensuring seamless pension provision

As your partner in occupational pensions, we make it easy for you to fulfill your responsibility and overcome administrative hurdles.

• For all HR administration: Manage new entrants, departures, and changes such as salary adjustments quickly and securely via our online portal iTellco.
• For absence notifications: Report absences due to illness or accident easily and transparently using our digital tool eAbsence.

Would you like to review your processes and ensure you have all risks of contribution gaps under control? Our experts would be happy to analyze your situation without obligation and show you concrete solutions. Arrange a consultation now.