The finpension 1e Collective Foundation insures the employees of ABB’s affiliated companies in Switzerland against the financial consequences of old age, disability and death, providing supplementary employee benefits beyond the statutory minimum benefits according to the Swiss law on occupational pension plans (BVG). This website summarise the content of the Rules and the pension plan. The only legally binding documents are the Rules and the pension plan of the finpension 1e Collective Foundation.
Who can join the pension plan? All employees of the affiliated employers whose monthly salary times 13 exceeds 4.5 times the maximum AHV individual pension are required to join the pension plan. Employees who are already insured by the ABB Supplementary Insurance Plan are not eligible.
What are 1e plans? The term “1e” refers to Article 1e of the Ordinance on Occupational Retirement, Survivors’ and Disability Pension Plans (BVV 2). Under 1e plans, such as the pension plan of ABB Switzerland Ltd. operated by the finpension 1e Collective Foundation, members are free to choose the investment strategy for their retirement assets.
Members fully participate in the investment returns generated by the selected investment strategy, i.e. both positive and negative returns. In contrast to employee benefits institutions that do not take advantage of the option under Art. 1e BVV 2, there is no capital guarantee. There is, however, a chance of higher returns.
You can select the investment strategy online at any time via the finpension 1e Collective Foundation login. The investment strategy is effectively adjusted on the second banking day of the week.
What is the insured salary?
The annual salary relevant for the retirement savings corresponds to 13 times the monthly salary plus 50% of the target bonus (100% attainment level), but no more than 30 times the maximum AHV retirement pension (30 x CHF 30,240 = CHF 907,200, as at 1 January 2025).
The insured salary in terms of retirement savings is equal to the portion of the relevant annual salary that exceeds 4.5 times the maximum AHV retirement pension (4.5 x CHF 30,240 = CHF 136,080, as at 1 January 2025).
The insured salary in terms of the risks of death and disability is equal to the portion of 13 times the monthly salary that exceeds 4.5 times the maximum AHV retirement pension.
Which benefits are insured?
— Age
Retirement capital The retirement assets are accrued through annual savings contributions, vested benefits brought in, any buy-ins of retirement benefits or for early retirement and the investment income or loss from the selected investment strategy. The retirement capital equals the market value of the retirement assets at the time of retirement.
Members can choose between three different savings plans. This means that they decide for themselves how much they want to contribute to their savings. The contributions table can be changed every month with effect from the first day of the following month. Higher contributions result in higher retirement assets and thus a higher retirement benefit. If no notification is given, members pay contributions in accordance with the Standard Minus contributions table.
Once a decision has been taken, the corresponding contributions table continues to apply until the member reverses the decision. The level of the employer’s savings contribution is fixed no matter which table the member chooses.
The Standard contributions table is the mid-range option that provides the benefit target.
Under the Standard Plus table, members voluntarily pay higher savings contributions than under the Standard contributions table. The higher savings contributions lead to higher retirement assets and thus to a higher retirement benefit.
The Standard Minus table involves the lowest contribution rates. As a result, the retirement assets increase at a slower rate, leading to a lower retirement benefit. These losses can be offset by switching to the Standard Plus table at a later date.
The savings contributions are calculated as a percentage of the insured salary as follows:
Members are entitled to a retirement benefit (retirement capital) when they reach the reference age (starting on the first day of the month following their 65th birthday). Early retirement can be taken no earlier than the first day of the month following the 58th birthday. Members may opt for continued insurance until, and no later than, the first day of the month following their 70th birthday, if and as long as their employment continues. Members can also opt for flexible retirement. From the age of 58, retirement can be taken in several stages (partial retirement) provided the employer agrees. The percentage of the retirement benefit is equal to the salary reduction, and the first partial withdrawal must amount to at least 20% of the retirement benefit. A maximum of three partial retirement stages are permitted. More information on retirement is available here.
— Disability
Disability pension The full annual disability pension amounts to 65% of the insured salary. After the reference age is reached, the disability pension is replaced by retirement capital.
Disabled person’s child benefit The annual disabled person’s child benefit amounts to 13% of the insured salary for each child under the age of 20 (or 25 if in full-time education).
Exemption from contribution payments Retirement assets continue to accrue during the period of disability. No savings contributions have to be paid. The waiting period for an exemption from contributions is 24 months.
In the case of partial disability, the amount of the disability benefits is determined in consideration of the degree of disability.
— What happens when a member or a recipient of a disability pension dies?
Spouse’s pension/partner’s pension The annual spouse’s pension/partner’s pension in the event of the death of a member or a recipient of a disability pension before the reference age is reached is 39% of the insured salary or 60% of the disability pension. This pension is payable until the death of the surviving spouse/partner.
Orphan’s pension The annual orphan’s pension in the event of a member’s death amounts to 13% of the insured salary for each child. In the event of the death of a recipient of a disability pension, the orphan’s pension amounts to 20% of the disbursed disability pension. Eligible children are those under the age of 20 (or 25 if in full-time education).
Lump-sum death benefit For members and recipients of a disability pension, the amount of the lump-sum death benefit in the event of death before retirement corresponds to the market value of the retirement assets, less the costs of financing the survivors’ benefits. In addition, a lump-sum death benefit amounting to 100% of the insured salary and the voluntary buyins made at the finpension 1e Collective Foundation are disbursed.
— Financing of the occupational benefit scheme
The annual contributions employers and members pay to the finpension 1e Collective Foundation include the annual savings contributions that finance the retirement benefits. The risk contribution for the financing of disability and death benefits and the administrative costs are fully financed by the employer.
— Benefits paid on termination of employment before reaching the retirement age
If a member’s employment contract ends before any benefits become due, such members will leave the finpension 1e Collective Foundation. The departing members are entitled to their termination benefit (vested benefit).
The termination benefit equals the market value of the retirement assets accrued on the date of departure. It will be transferred in favour of the departing member to their new employee benefits institution in Switzerland or Liechtenstein. If members do not join a new employee benefits institution, the termination benefit must be used to open a vested benefits account at a vested benefits institution or to take out a vested benefits policy with an insurance institution in Switzerland.
— Promotion of home ownership
Members can use their retirement assets to finance home ownership. They can do this at most every 5 years. The minimum withdrawal is CHF 20,000. Up to the age of 50, members can withdraw their entire savings capital. After the age of 50, the maximum withdrawal is the amount of the retirement assets at the age of 50 or half of the retirement assets actually accrued.
— Buy-in of retirement benefits
Members can improve their retirement benefits by making voluntary buy-ins into the finpension 1e Collective Foundation. This allows them to close any gaps in their retirement assets that may have arisen due to career breaks, salary increases or other reasons. At the same time, they reduce their taxes, since voluntary buy-ins can be deducted from income in their tax return. Members can calculate the potential buy-in amount online at any time via the finpension 1e Collective Foundation login.
Members also have the option of buying out some or all of the benefit reduction in the event of early retirement by making additional buy-ins.
In the event of death before retirement, voluntary buy-ins to the finpension 1e Collective Foundation will be paid out as a lump-sum death benefit.
Please note: Where buy-ins have been made, the resulting benefits may not be withdrawn as a lump sum for a period of three years. Any lump-sum withdrawal made within three years of a buy-in may affect the member’s tax situation. Members are responsible for clarifying the tax consequences.
If members are not eligible to buy into the ABB Pension Fund, they are responsible for contacting the ABB Pension Fund to clarify whether they hold any assets that exceed the maximum. Such assets reduce the buy-in potential in the 1e Collective Foundation. They must be listed in the application for the buy-in and reported to finpension.
— Abbreviations
AHV Swiss Federal Old-Age and Survivors’ Insurance BVG Federal Law on Occupational Retirement, Survivors’ and Disability Benefit Plans
