Glossary
Pay-as-you-go system
A system of financing ongoing benefits out of the contributions collected in the same period (e.g. OASI/InvI).
Pension fund
Term used for an occupational benefits scheme that pays out recurring benefits (pensions) in old age, disability and death. Today a colloquial expression for an occupational benefits scheme.
Pension insurance expert
A title protected by the Federal Office for Industry and Labor for persons whose training and professional qualifications meet the legal requirements of an (actuarial) expert for occupational benefit schemes.
Pension value system
Method of structuring the financing of benefits according to the capital cover principle. The funding is defined in such a way that the cover capital can be provided for all pensions in the period.
Pillar 2
Name and umbrella term for the systems of occupational benefit schemes in Switzerland. In combination with Pillar 1, it is intended to allow the accustomed way of life to be continued in cases of old age, disability or death to a reasonable degree.
Portability of Pensions Act
Federal Act on the Portability of Pensions (“Freizügigkeitsgesetz”)
Portable sum
The sum of money that is payable to an insured person on leaving the benefits scheme (also known as “vested benefits”). In the case of funds with defined benefits plans, it corresponds to the cash value of the acquired benefits; In the case of funds with defined contributions plans, it corresponds to existing retirement assets.
Promotion of home ownership
Use of funds from the occupational benefits scheme to finance ownership of a home for use by the insured person (earl withdrawal or pledging of pension benefits).
Purchase
Voluntary extra contribution paid in by an insured person for financing any gaps in contributions with the purpose of acquiring the full scope of benefits provided by his or her benefits scheme as laid down in the regulations (within certain legally defined limits or “purchase restrictions”)