What does the pension fund pay for disability or death?

Occupational pensions, also known as the pension fund, not only provide for employees in their old age but also in the event of disability or death. It is crucial for employers to be aware of the applicable benefits and the correct procedures. Tellco pk helps you to fulfil your responsibility and keep administrative costs to a minimum.

Benefits in case of disability: Financial security during incapacity for work

If an employee becomes unable to work due to illness or an accident, the pension fund benefits come into effect.

What benefits are provided?

• Disability pension: This compensates for the loss of income. The amount depends on the degree of disability: a full pension is paid for a degree of 70% or more. In the case of partial disability, the pension is paid on a pro-rata basis.
• Disability child’s pension: In addition to the disability pension, a child’s pension is paid for each eligible child.
• Contribution exemption: The employee and the employer are exempted from paying contributions. However, the pension cover and old-age provision continue.

The prerequisite for entitlement is an incapacity for work of at least 40% recognised by the Federal Disability Insurance (DI).

Procedure for employers: Report absences digitally

Early notification is crucial. Incapacities for work lasting longer than 60 days can be reported easily and digitally via the online tool eAbsence.

Benefits in the event of death: Security for survivors

If an insured employee passes away, the pension fund benefits provide financial security for the survivors.

Who is entitled to what benefits?

Entitlement is clearly regulated. The pension amount generally corresponds to a percentage of the insured disability pension.

• Spouses and registered partners: Receive a widow's or widower's pension.
• Children: Receive an orphan’s pension until the age of 18 (or 25 if in education or training).
• Life partners: May also be entitled to benefits under certain conditions (e.g. a domestic partnership of at least five years).
• Death benefit lump sum: If there are no persons entitled to a pension, the existing retirement savings are paid out as a one-off lump sum to the beneficiaries in accordance with the regulations.

Procedure for employers: Reporting a death

To ensure a quick and straightforward process in the event of a bereavement, the death must be reported immediately. You can find the necessary "Report of death" form directly in our Download Center. This ensures that the benefit assessment for the survivors can be initiated as quickly as possible.

Coordination with other social insurance schemes

The pension fund benefits are coordinated with other social insurance schemes (DI, accident insurance, military insurance). This ensures that the total financial benefits do not exceed 90% of the probable loss of earnings. This coordination prevents over-compensation and ensures a stable system.