PK / CP
What is PK/CP?
PK (Pensionskasse in German) or CP (Caisse de pension in French) refers to pension funds in Switzerland, which form a central part of the country’s occupational pension system, also known as Pillar 2. These funds are designed to ensure financial security for employees after retirement and are a mandatory component of Swiss social security for qualifying workers.
The PK/CP system operates as a statutory occupational pension scheme that supplements the state pension (Pillar 1) and is regulated under the BVG (German) / LPP (French) law. Contributions are jointly funded by employers and employees and are managed by registered pension institutions supervised by Swiss authorities. The system helps employees maintain their standard of living in retirement and forms a critical part of employer-provided benefits in Switzerland.
Key Features of the Swiss Pension Fund System
- Mandatory for employees earning above the annual BVG threshold
- Financed by both employer and employee contributions
- Covers retirement pensions, as well as disability and survivors' benefits
- Portable between employers within Switzerland
- Regulated under the BVG (German) / LPP (French) framework
Types of Pension Funds
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Company Pension Funds
Managed by a single company for its own employees. -
Collective Pension Funds
Serve several affiliated companies, often within the same industry or trade association. -
Common Pension Funds
Open to multiple small and medium-sized businesses and administered by a third party.
Importance for Employees and Employers
Understanding how the PK/CP system works is essential for:
- Employees: Planning long-term retirement security and evaluating total compensation
- Employers: Structuring competitive benefit packages and ensuring legal compliance
- HR & Payroll Teams: Coordinating monthly contributions and benefit reporting
Proper pension fund setup can also help companies retain talent and build financial trust with their workforce.
Need help managing pension obligations or setting up a compliant payroll structure?
SwissIncorporated helps businesses set up and manage Swiss Payroll & Swiss Accounting Services, including pension fund contributions, BVG compliance, and employee benefit coordination tailored to Swiss labor law.
