What does your pension fund pay if you are unable to work?

What does your pension fund pay in case of incapacity for work?

An incapacity for work due to health reasons can be a great burden. We want to provide you with security in this challenging situation. Here, you can learn in detail which conditions apply and how your benefits are structured.

Requirements for benefits from the pension fund

The entitlement to benefits from occupational pensions is closely linked to the Swiss Federal Disability Insurance (IV). The basic requirement is that the IV recognises a disability level of at least 40%. Additionally, you must have been insured with a pension fund at the time the incapacity for work began.

What benefits can you expect?

If the requirements are met, your pension fund will provide you with the following benefits:

• Disability pension: This is the main benefit. You receive a monthly pension that helps compensate for the loss of income and secure your standard of living as much as possible.
• Child’s disability pension: Do you have children who are legally entitled to benefits? You will receive an additional pension for each child. Children are entitled until their 18th birthday or until they complete their education (until their 25th birthday at the latest). This benefit helps you bear the financial responsibility for your family even while you are unable to work.
• Contribution exemption: A significant advantage is that you and your employer no longer have to pay savings contributions. We will continue to credit the contributions to your account as if you were working normally. This allows your retirement savings to grow without interruption, preventing any gaps in your pension provision for retirement.

How is the pension amount calculated?

The amount of your disability pension depends on your pension plan. It is based on your "projected retirement savings". This may sound complicated, but it’s simple to explain: We take the savings you have accumulated up to the start of your incapacity for work and add the future savings contributions you would have paid until retirement (without interest).

A simple example:

• Your current retirement savings: CHF 150,000
• Future savings contributions until retirement: CHF 100,000
• Projected retirement savings: CHF 250,000

Your annual pension is calculated from this amount. The final amount also depends on the degree of disability determined by the IV.

What are the next steps?

A transparent process is important to us. The following steps will guide you:

The first steps

• Step 1: Inform your employer: Report your incapacity for work to your employer as soon as possible. They will forward the notification to us and other insurance providers.
• Step 2: Register with the IV: Registering with the Disability Insurance (IV) is crucial, as their decision forms the basis for our benefit assessment. This is usually done through your employer or the daily sickness benefits insurance.
• Step 3: Let us handle the coordination: Once we are informed, our Case Management team will support you. To ensure we can assist you in the best possible way and take over the complex coordination with doctors and insurance companies on your behalf, we require a power of attorney. This allows us to act on your behalf and simplify the process for you – naturally, in strict compliance with data protection regulations.

An incapacity for work raises many questions. Please do not hesitate to contact us if you need personal support. We are here for you and happy to help. Simply use our contact form.