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← Overview Database of Innovative Social Policies in Europe

1st revision of the federal law on occupational pensions (BVG/LPP)

Country of implementation
Switzerland
General short description of the innovation
The objective of the 1st BVG/LPP revision was to adapt the law on occupational pensions to increasing life expectancy and to improve coverage of atypical workers, especially part-time employees. Because of an access threshold to compulsory affiliation for second pillar pensions, many part-time workers, mostly women with children, were excluded from compulsory occupational pension coverage. / The access threshold was reduced form approx. 24,000 CHF ? 19?745 Euros - to approx. 18,000 CHF- 14?809 Euros - per year. This allowed the inclusion in the system of many part-time workers. / At the same time, the conversion rate (rate used to convert the accumulated capital into an annuity) was lowered from 7.2% to 6.8%. /
Target group
Total Population
Policy Field
  • pension
Type of Policy
  • public
Duration of the policy
In force since 1st of January 2006.
Scope of innovation
  • Scope: structural
  • Budgets: unknown. Additional costs are borne by employers and insured persons
  • Number of intended beneficiaries: unknown
  • Spatial coverage: national
General description of (intended) objectives and strategies
The objective of the 1st BVG/LPP revision was to adapt the law on occupational pensions to increasing life expectancy and to improve coverage of atypical workers, especially part-time employees.
Nature of the innovation-short-term perspective
moderate
Nature of the innovation-long-term perspective
moderate
Type of ideal-typical strategy for the innovation
  • encompassing security
  • others (moderate extension of coverage to outsiders)
Type of innovation
  • retrenchment or expansion of an existing/earlier policy
New outputs
  • benefit eligibility (Workers who because of their low earnigs were excluded form occupational pension coverage are now included)
Intended target group
Part-time workers, particularly women with young children
Working age population
  • main source of income: social protection (objective was to improve pension coverage for the target group)
Actors involved in policy-making/implementation and/or evaluation
  • central state
Intended output
  • benefit eligibility
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