It’s important to us to explain the complex topic of the occupational benefit scheme as comprehensibly as possible. However, sometimes we cannot get around using technical terms. In our glossary we explain these technical terms briefly and in a reader-friendly manner.
Savings premium
For capital-accumulating insurances, this is the part of the total premium which, together with the interest, determines the annual growth of the policy reserve.
In principle, with this kind of insurance, the insurer must also provide a benefit if the insurance contract is cancelled before its term, that is to say before an insurance event occurs, and provided that the minimum premium payment period is complied with.
Security fund
When they enter into business, life insurance companies are required to deposit a guarantee of SFr. 500,000. This sum is placed in a safety fund covering the rights of policyholders of life insurance contracts which they have issued. The ideal sum corresponds to the technical reserves of a life insurance company.
Single premium
A single (life) premium used to finance insurance, payment being made at the commencement of the insurance contract.
Splitting (income splitting)
Feature specific to calculating retirement pensions for married couples. For calculating the average employment income, each spouse is credited for half of the other spouse's annual income for the duration of the marriage.
Splitting pension solution
Type of organisation for non-compulsory insurance under occupational pension provision, where the BVG minimum benefits and the extra-mandatory benefits are insured separately.
Supervisory authority
Each canton appoints a body responsible for the supervision of all occupational benefit plans of companies whose head office is located within the canton. This body checks that all legal conditions are observed and keeps an occupational benefit plan register. These supervisory authorities are responsible to the Federal Council. Similar supervision is also carried out by the Federal Office of Private Insurance or the Federal Social Insurance Office.
Supplementary benefits (EL)
State pension (first pillar) benefits that are paid if a person receiving AHV or IV benefits does not have an income sufficient enough to cover basic living costs. These benefits can only be claimed by people in need.