The ABB Supplementary Insurance Plan insures the employees of ABB’s affiliated companies in Switzerland against the financial consequences of old age, disability and death as part of the supplementary occupational benefit scheme that goes beyond the statutory minimum benefits (BVG). This website summarise the contents of the full Rules. The full Rules of the Supplementary Insurance Plan, which can be obtained from the employers, are the only legally binding regulations.
Who can join the Supplementary Insurance Plan?
The Supplementary Insurance Plan no longer admits new members. Insurance is only provided to members who were already insured with the Supplementary Insurance Plan as at 31 December 2023 and have not transferred to the 1e Foundation with effect from 1 January 2024.
What is the insured salary?
The annual salary relevant for the retirement savings is equal to 13 times the monthly salary plus 50% of the target bonus (100% attainment level). The insured salary available for 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 salary insured for the risks of death and disability corresponds to the portion of the 13-month salary that exceeds 4.5 times the maximum AHV retirement pension.
Which benefits are insured?
— Age
Retirement capital The savings assets are accrued by means of the annual savings contributions, contributed vested benefits, any buy-ins of pension benefits or buy-ins 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 higher retirement benefits. 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 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 midrange option that provides the defined 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 higher retirement benefits.
The Standard Minus table involves the lowest contribution rates. As a result, the savings assets increase at a slower rate, leading to lower retirement benefits. 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:
The entitlement to a retirement benefit (retirement capital) arises when members reach the reference age (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 Supplementary Insurance Plan in writing at least one month before reaching the reference age which of the abovementioned options they intend to take. If no notification is given, retirement will be taken at the reference age.
Percentage savings contribution depending on age and selected contributions table 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.
— 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 the retirement capital.
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 39% of the insured salary or 60% of the disability pension. This pension is payable until the deceased member would have reached the reference age. The reafter, an entitlement to a lump-sum settlement arises.
Orphan’s pension The annual orphan’s pension in the event of a member’s death amounts to 13% 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 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 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 Supplementary Insurance Plan include the annual savings contributions that finance the retirement benefits. The contribution of 3.5% of the insured salary that finances disability and death benefits are paid solely by the employers.
— 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 Supplementary Insurance Plan. 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 Supplementary Insurance Plan. 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 buyin amount. On request, the Supplementary Insurance Plan will calculate the precise maximum potential buy-in amount.
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 up to a maximum of four times per calendar year. In the event of death before retirement, voluntary buy-ins to the ABB Supplementary Insurance Plan 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.
