Contribution to the 2nd pillar
In addition to the first pillar (AVS), the law provides for a second contribution, the so-called 2nd pillar, which is compulsory for all employees with an annual salary of more than 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 the disability insurance are not subject to the obligation to take out 2nd pillar insurance (BVG), but they may take out this insurance on a voluntary basis.
If the taxpayer feels that there are gaps in his or her contribution years, e.g. due to language studies, experience abroad, a long maternity leave, etc., the taxpayer can take out a voluntary pension plan. If the taxpayer feels that he/she has gaps in these years of contributions, e.g. due to language studies, experience abroad, a prolonged maternity leave, etc., he/she may be able to buy back the missing years of 2nd pillar contributions, which are fully tax-deductible.
How do you know if you can buy back the 2nd pillar?
To check whether you are entitled to buy back years of 2nd pillar contributions, you should contact your pension fund in order to check the amount of the possible buy-back calculated Once the fund has informed you of the amount you are entitled to buy back, you can proceed with the total or partial purchase of the 2nd pillar.
Should I use my 2nd pillar purchase entitlement in full or in part?
In general, it makes more sense to use your 2nd pillar purchase entitlement over several years. However, we advise you to make a tax assessment before making any purchases in order to determine the most appropriate amount to reduce your tax burden.