Better Occupational Pension Provision for People with Multiple Employers

However, those who distribute their income across several jobs are often disadvantaged in occupational pension schemes. In many cases, only the main employment is insured, while income from secondary jobs remains below the entry threshold. This currently stands at CHF 22,680 per year. If this amount is not reached in a single employment, there is no compulsory BVG affiliation, even if the total income exceeds it.

From my experience as Head of Pension Solutions at Tellco, it becomes evident that many multiple-job holders earn enough to build a solid pension but are only partially or not at all insured. The reasons lie in the legal framework of occupational pensions. It only takes multiple employment situations into account to a limited extent, which means that income from individual employments below the entry threshold is not compulsorily insured.

Unequal Protection Particularly Affects Women and Part-Time Employees

Part-time employees, women, and people in low-wage sectors are particularly affected. These groups face a higher risk of being insufficiently covered in old age.

The recently published report by the Federal Council makes it clear that multiple employment is no longer an exception today. The diversity of working models is increasing, and with it, the importance of pension provision that meets the needs of different employment situations.

What the Federal Council Proposes

To improve pension provision for people with multiple jobs, the Federal Council examined various options. It considers the following adjustments to be the most effective:

• Lowering the entry threshold: More employees would be compulsorily insured, even at lower incomes.
• Reducing the coordination deduction: A larger share of income would flow into pension provision, thereby increasing future pensions.
• Abolishing the distinction between main and secondary employment: All employment income would be treated equally.

According to the report, these measures could expand access to the second pillar and make pension provision fairer.

Opportunities and Implications

The proposed adjustments could significantly improve the financial security of many workers. At the same time, they would have implications for employers and pension institutions, as additional insured persons would mean higher contributions and greater administrative effort.

To ensure financial stability in the compulsory system, the Federal Council emphasises that any adjustments should be coordinated with further reform steps – for instance, in determining the minimum conversion rate – and should be sustainable in the long term. The goal is a balanced solution between social security and financial stability.

Flexible Solutions for Employees with Multiple Jobs

At Tellco, we place great importance on ensuring that pension solutions fit today’s employment situations. Thanks to solutions in which the coordination deduction is reduced or eliminated entirely, employees with multiple jobs can insure their full income in the second pillar.

Our solutions are also designed to take hourly wages and part-time workloads into account. The aim is to enable all employees – regardless of the number of employers or workload – to build a solid pension.

The Federal Council’s report provides an important basis for discussion on the further development of the second pillar. It shows that occupational pension provision can be designed to reflect the reality of an increasingly flexible working world.