What is BVG/LPP?

The BVG (Bundesgesetz über die berufliche Alters-, Hinterlassenen- und Invalidenvorsorge) in German or LPP (Loi fédérale sur la prévoyance professionnelle vieillesse, survivants et invalidité) in French is the Swiss Federal Law on Occupational Retirement, Survivors' and Disability Pension Plans.

Key Aspects:

• Mandatory occupational pension system (Pillar 2)
• Applies to employees earning above a certain threshold
• Funded by contributions from both employers and employees
• Provides retirement, disability, and survivors' benefits

Contribution Rates: Vary based on age and salary, typically ranging from 7% to 18% of the coordinated salary.                                

Benefits

• Retirement pension or lump-sum payment
• Disability pension
• Survivors' benefits for spouse and children