Is my entire salary insured in the pension fund?

Why not all of your salary is insured – and for good reason

To understand your pension provision, it is crucial to know which portion of your salary is insured in the pension fund. It is not your entire annual salary, but this is not a disadvantage; it is a core principle of the proven Swiss 3-pillar system.

The coordinated salary: The heart of your pension plan

Occupational pensions (OPA), or pillar 2, build upon the benefits from the Old-Age and Survivors’ Insurance (OASI) of pillar 1. To prevent salary components from being insured twice, a so-called coordination deduction is subtracted from the OASI-liable annual salary. The result is the coordinated salary – the amount on which your savings contributions to the pension fund are actually calculated.

NOTE

The most important terms explained simply

Coordination deduction: A legally defined amount that is deducted from your annual salary, as this portion is already covered by OASI (pillar 1).
Coordinated salary: The portion of your salary that remains after the coordination deduction and is insured in the pension fund. It forms the basis for your savings contributions.

A simple calculation example

Imagine your annual OASI salary is CHF 85,000. The calculation would look like this (based on 2025 values):

Your annual salary: CHF 85,000
- Statutory coordination deduction: CHF 26,460
= Your insured salary (coordinated salary): CHF 58,540

Your savings contributions, as well as those of your employer, are calculated based on CHF 58,540. This is how the pension fund perfectly supplements the OASI benefits.

The most important key figures at a glance

The Federal Law on Occupational Retirement, Survivors' and Disability Pension Plans (OPA) defines clear thresholds that apply to all pension funds (as of 2025):

Term	Amount (CHF)	Brief description
Entry threshold	22,680	Minimum annual salary for mandatory insurance.
Coordination deduction	26,460	Is deducted from the annual salary (already covered by OASI).
OPA upper limit	90,720	Salary components above this are not insured under the mandatory scheme.
Max. insured salary	64,260	Results from the upper limit minus the coordination deduction.
Min. insured salary	3,780	Minimum amount if the coordinated salary is lower.

What does this mean for your pension provision?

This system ensures that you build up solid and seamless pension provision. It is especially important for part-time workers to understand the rules governing insured salary. A fixed coordination deduction can significantly reduce savings contributions in this case. Some pension funds offer pension solutions where the coordination deduction is adjusted to the level of employment. This can ensure a fairer and more attractive pension, particularly for part-time employees.

Your next steps: How to get clarity

Consult your insurance certificate: Your most important document is your insurance certificate. It shows you in black and white how high your insured salary is.
Analyse your situation: Check how your current level of employment affects your insured salary. Especially with part-time work, it is important to understand the impact of the coordination deduction.
Use a personal consultation: Every pension situation is unique. If you are unsure or have questions, we are happy to help.

TIP

Your insurance certificate provides clarity

You can find all the details about your insured salary on your insurance certificate. At Tellco, you have access to it at any time via the ePlix online portal. To help you better understand the individual items, we have prepared a simple explanation for you.

To the insurance certificate and explanation

Do you have any questions?

Occupational pensions are individual. If you have questions about your insured salary or your personal pension situation, we are here for you.

Contact us

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