Reform of the Occupational Pension System
New options for your pension provision from 2028 onwards
On September 23, the National Council approved a reform of the occupational pension system. Starting January 1, 2028, this will open up new opportunities for you and your retirement savings.
In the future, you will be able to decide for yourself how your contributions are invested. Your employer currently contributes 1.53 percent of your gross salary to a Vorsorgekasse (severance payment). Starting in 2028, you can have this money invested in what is known as a Pension Investment Pool (VVG).
The difference from the previous “Abfertigung Neu” model (severance payment NEW model), which will remain in place: The VVG offers no capital guarantee. This means the money can be invested with higher risks, but also with higher potential returns. Your money remains tied up until you begin receiving your pension, enabling long-term investment.
Your Severance Pay as a Supplementary Pension
There is also a new development regarding the future use of your severance pay entitlements: Starting in 2028, all employees will be able to transfer their severance pay entitlements to a pension fund. This allows you to convert your severance pay into a lifelong supplemental pension. Until now, this option was available to only about 25 percent of employees. The prerequisite was that the employer had voluntarily entered into a company pension agreement.
With the new standard product for the transfer of pension entitlements (SPÜV), this option will be available to all employees starting in 2028.
