The amount of the contributions to be paid to the pension fund corresponds to a given percentage of the pensionable (coordinated) salary. The employer deducts the employee’s share from the salary each month and transfers it to the pension fund together with its own share.
The contributions consist of two parts:
- The retirement contribution, to make financial provision for retirement.
- The risk contribution, to finance disability and death benefits before reaching normal retirement age.
The amount of the retirement contributions is dependent on the respective age of the insured person. Regarding the Basic plan, retirement contributions amount to 40 per cent by the insured person and 60 per cent by the employer. With respect to the Plus plan, the employer makes the same level of retirement contributions as applies to the Basic plan, while the contributions paid by the insured person are increased to the same amount. This boosts savings with correspondingly higher pensions.
The risk contributions amount to 3.5 per cent of the pensionable salary and are financed, independent of the pension plan, at 40 per cent by the insured person and 60 per cent by the employer.
The approximate level of contributions to be expected can be found in the appendix to the regulations. You will find tables disaggregated by age.