Contribution to the 2nd pillar

In addition to the first pillar (AVS), the law provides for a second contribution called the 2nd compulsory pillar for all employees receiving an annual salary above CHF 21'330, this contribution is shared between the employee and the employer who must pay at least 50% of the contributions.

Self-employed persons and persons with an earning incapacity of at least 70% within the meaning of disability insurance are not subject to the obligation to be insured under the 2nd pillar (BVG), but they may subscribe to this provision on an optional basis.

If the taxpayer considers that he/she has gaps in these years of contributions linked to language studies, experience abroad, extended maternity leave, etc. for example, he/she may be able to buy back the missing 2nd pillar contribution years, which are fully tax deductible.

How do you know if you can buy back the 2nd pillar?

In order to check the right to buy back 2nd pillar contribution years, it is necessary to contact your pension fund in order to check the possible buy-back amount calculated according to your personal situation, once the fund informs you of the buy-back amount to which you are entitled, you have the possibility to make a full or partial buy-back of the 2nd pillar.

Should I use all or part of my 2nd pillar buyback right?

In general, it is more sensible to use your 2nd pillar redemption right for several years. However, we advise you, before any redemption, to make a tax estimate to determine the most appropriate amount to reduce your tax burden.