Defined contributions plan

Pension Funds Novartis 1 and 2

The transition from defined benefits to defined contributions intended to ensure that the Pension Fund can achieve its primary objective, namely that of securing a financially healthy, sustainable and flexible occupational benefits scheme for Novartis associates in Switzerland in the future. In order to implement the new pension plan, two different legal entities were established – Pension Fund 1 and 2. Each one covers a different portion of earnings. The introduction of PF2 on January 1, 2011, enables members of the fund to have a say on their investment options in respect of a certain proportion of their insured salaries.

Pension Fund Novartis 1

Pension Fund 1 basically covers annual earnings up to CHF 150 000 (including incentive/bonus, minus coordination offset). At retirement the plan provides a pension annuity with a lump sum payout option of up to 50%. In addition, there are risk benefits insured in the case of death or disability, taking into account a base salary of up to CHF 220 000 (minus coordination offset).

Pension Fund Novartis 2

Associates earning over CHF 150'000 (base salary plus incentive) are offered a choice from a number of investment strategies. Each is tailored to a different investment time horizon and level of risk tolerance. At retirement and in case of disability or death in service, the plan provides benefits in the form of lump sum payments.

Novartis Management Pension Fund

Employees with a base salary in excess of CHF 220,000 per year are insured in the Management Pension Fund. The savings process for retirement benefits here is built up as a defined contributions plan. For the investment of individual assets you have six investment strategies to choose from.

Benefits are paid out exclusively in the form of a lump sum.

In addition, there are risk benefits insured in the case of death or disability.


Am I free to choose my pension fund?

No, there is no right of choice. You have to be insured with the pension fund affiliated to your employer.

Who is my contact partner for questions concerning the occupational pension scheme?

You can turn directly to the responsible contact person at the Novartis Pension Funds.

Do I have to register with Novartis Pension Funds?

No, your employer registers you for admission to the Novartis Pension Funds. Once we have received this registration, the Novartis Pension Funds will send you a Welcome Package, which provides you with further information.

Are there any reasons why I might not be insured with the Novartis Pension Funds?

You will not be admitted to the Novartis Pension Funds if you

  • have a fixed-term employment contract of not more than three months with an affiliated company (subject to Art. 1k Occupational Pension Ordinance BVV2);
  • you are only employed part-time with an affiliated company and are already covered by compulsory insurance for a main occupation or pursue your main occupation as a self-employed person;
  • are at least 70 percent incapacitated within the meaning of the disability insurance act;
  • have reached the age of 65 years.