Three Pillar System (old age, invalidity, survivors)
First Pillar
Old Age Insurance (AHV): Resident individuals who are employed in Switzerland must contribute to the State Old Age and Invalidity Insurance. Half of it is paid by the employer and the other half by the employee. On retirement, social security benefits are based on the premiums paid and on the number of years of the individual’s contributions. All those – Swiss and foreigners alike – who are required to pay contributions receive a personal in-surance number as well as a certificate upon joining the AHV. This certificate has to be carefully kept as it must be shown to each new employer. Read more... (ch.ch)
Invalidity Insurance (IV): The principal aim of invalidity insurance is to support disabled persons to the extent that they can ensure their own existence fully or at least in part, and to guarantee their independence as far as possible. The benefits of invalidity insurance therefore comprise first and foremost measures to promote social integration.
Other Benefits
Protection against the consequences of illness and accidents
Military Service (EO): Persons who are required to serve in the army, civil defence and provide other non-military services receive compensation for their periods of service. The same fund provides maternity compensation.
Second Pillar
Pension Fund: Company pension plans are compulsory under Swiss federal law for all employees aged 18 or over who pay in to the Old Age and Invalidity Insurance. On retirement, the pension paid depends on the amount of retirement credits and accumulated interest. The contributions of the employee and employer are shared equally by law. In practice, some companies make contributions that exceed the minimum required, to make the scheme more attractive. The benefits include an old age or disability pension, as well as benefits to the surviving dependants in the event of the death of the insured person.