The ABB Pension Fund insures the employees of ABB’s affiliated companies in Switzerland against the financial consequences of old age, disability and death in accordance with the Swiss law on occupational pension plans (BVG), as well as providing supplementary benefits beyond the statutory minimum benefits. This website summarise the contents of the ABB Pension Fund Rules. The Pension Fund Rules, which can be found under "Documents", are the only legally binding regulations.
Membership of the Pension Fund
All employees of the affiliated employers who have entered into an employment relationship for more than three months are required to join the Pension Fund. If the employment contract lasts up to three months, employees are only required to join if the contract is extended beyond three months.
When do employees join?
Employees are insured against the risks of disability and death as of the 1st January following their 17th birthday. They are insured for retirement benefits as of the 1st January following their 20th birthday.
What is the insured salary?
The relevant annual salary is 13 times the monthly salary plus 50% of the target bonus (100% attainment level). The annual salary subject to AHV contributions must exceed the BVG entry threshold (6/8th of the maximum AHV retirement pension of CHF 30,240 = CHF 22,680, as at 1 January 2025).
The insured salary is equal to 80% of the relevant annual salary, up to a maximum of 3.6 times the maximum AHV retirement pension (3.6 x CHF 30,240 = CHF 108,864, as at 1 January 2025).
Which benefits are insured?
— Age
Retirement pension/savings assets
The savings assets are accrued by means of the annual savings contributions, contributed vested benefits, any buy-ins of pension benefits or buyins for early retirement, and interest.
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 with effect from the 1st of the following month. Higher contributions result in higher savings assets and thus a higher retirement pension. If no notification is given, members pay contributions in accordance with the Standard contributions table. Once a decision has been taken, the corresponding contributions table continues to apply until the members 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 savings assets and thus to a higher retirement pension.
The Standard Minus table involves the lowest contribution rates. As a result, the savings 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 pension 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 deferred retirement (no contributions are levied) or continued insurance with savings contributions until, and no later than, the first day of the month following their 70th birthday, if and as long as their employment continues. More information on retirement is available here.
Members must inform the Pension Fund in writing at least one month before reaching the reference age which of the above-mentioned options they intend to take. If no notification is given, retirement will be taken at the reference age.
The amount of the annual retirement pension is calculated by multiplying the savings assets accrued at the time of retirement with the conversion rate (CR) applicable at that time.
Intermediate values are interpolated to the nearest month on a linear basis.
At the time of retirement, members may withdraw all or a discretionary portion of their savings in the form of a lump sum instead of a retirement pension. Where buy-ins were made within the last 3 years before retirement, the resulting benefits may not be withdrawn in the form of a lump sum. A written declaration regarding the lump-sum withdrawal must be submitted no later than two months before the first pension payment is due. In the case of married members, the spouse must also consent to the lump-sum withdrawal.
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 early retirement benefit may not exceed the share of 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. Members may choose the portion they wish to draw as a retirement pension and the portion they wish to draw as a retirement lump sum at each partial retirement stage.
AHV bridging pension Where members retire after their 63rd birthday, they are entitled to a monthly bridging pension, from the time of retirement until they reach the reference age, provided that the contribution period has lasted for no less than five years. The amount of the bridging pension corresponds to the maximum AHV retirement pension applicable at the time of retirement (CHF 30,240, as at 1 Jan. 2025), For part-time employees, the bridging pension is reduced accordingly. The AHV bridging pension is financed by the employer.
Retired person’s child benefit Recipients of a retirement pension are entitled to a retired person’s child benefit if the Pension Fund’s retirement pension as per the Rules is less than the sum of the retirement pension and the retired person’s child benefit as set out in the BVG.
Spouse’s/partner’s pension In the event of the death of a recipient of a retirement pension, the spouse’s/partner’s pension amounts to 60% of the deceased member’s retirement pension. At the time of retirement, members have the option of raising the prospective spouse’s pension to a maximum of 100% of the retirement pension. In this case, the retirement pension is reduced individually for life in accordance with the technical principles of the Pension Fund. Partners of unmarried recipients of a retirement pension are not entitled to a partner’s pension unless the partnership was entered into before the 60th birthday of the recipient of the retirement pension.
Orphan’s pension The annual orphan’s pension in the event of the death of a recipient of a retirement pension is 20% of the retirement pension for each child under the age of 18 (or 25 if in full-time education). This amount is doubled for full orphans.
Lump-sum death benefit For recipients of a retirement pension, the amount of the lump-sum death benefit is twice the annual pension, less any retirement pensions already drawn.
— Disability
Disability pension The full annual disability pension amounts to 60% of the insured salary. After the reference age is reached, the disability pension is replaced by a retirement pension.
Disabled person’s child benefit The annual disabled person’s child benefit amounts to 20% of the disbursed disability pension for each child under the age of 18 (or 25 if in full-time education).
Exemption from contribution payments Savings assets continue to accrue during the period of disability. No savings contributions have to be paid. The exemption from contribution payments is based on the savings credits of the Standard contributions table.
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 36% of the insured salary or 60% of the disability pension. This pension is payable until the deceased member would have reached the reference age. Thereafter, it amounts to 60% of the notional retirement pension.
Orphan’s pension The annual orphan’s pension in the event of a member’s death amounts to 12% of the insured salary. 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. This amount is doubled for full orphans. Eligible children are those under the age of 18 (or 25 if in fulltime 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 net accrued savings capital (savings assets less personal buy-ins) less the costs of financing survivors’ benefits; however, at least 100% of the insured salary.
— Financing of the occupational benefit scheme
The annual contributions employers and members pay to the Pension Fund include the annual savings contributions that finance the retirement benefits. The contribution of 2.4% of the insured salary that finances disability and death benefits and the amount of 1.4% of the insured salary that finances the AHV bridging pension and retirement losses are paid solely 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 Pension Fund. The departing members are entitled to their termination benefit (vested benefit).
The termination benefit equals the savings assets accrued on the date of departure. It will be transferred in favour of the departing member to their new pension fund 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 savings assets to finance home ownership. They can do this up to, but no later than, 3 years before the reference age and 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, they can withdraw the amount of their savings capital accrued at age 50 or half of the current savings capital.
See separate information sheet under the heading “Documents”.
— Buy-in of pension benefits
Members can improve their retirement benefits by making voluntary buy-ins into the Pension Fund. This allows them to close any gaps in their pension 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. The insurance certificate states the provisional potential buy-in amount.
On request, the Pension Fund will calculate the precise maximum potential buy-in amount.
Members also have the option of buying out some or all of the pension reduction in the event of early retirement by making additional buy-ins up to a maximum of four times per calendar year. In the event of death before retirement, voluntary buy-ins to the ABB Pension Fund will be paid out as a lump-sum death benefit.
Please note: Where buy-ins have been made, these buy-ins plus any interest earned on them 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.
HV Swiss Federal Old-Age and Survivors’ Insurance BVG Federal Law on Occupational Retirement, Survivors’ and Disability Benefit Plans CR Conversion rate
— Contact
ABB Pensionskasse und Ergänzungsversicherung c/o Avadis Vorsorge AG Zollstrasse 42 Postfach 1077 8005 Zürich
