Reducing your working hours
The reasons for reducing your working hours are usually positive: entering continuing education, making more time for leisure pursuits or to look after children. Even so, you need to be aware of the implications for your personal retirement provision: less income usually also means a smaller pension.
Retaining good coverage from PUBLICA while working part time
The occupational pension is geared to people working full time with no gaps in their contribution record. Employers are already able to compensate part-time workers to some extent by reducing the coordination offset or entry threshold. This is already standard procedure for PUBLICA’s pension plans.
Coordination offset
Under the Occupational Pensions Act (OPA), the component of the annual salary that is covered by OASI benefits does not also need to be insured by the pension fund. This deductible amount is known as the coordination offset. At PUBLICA, it is 30% of the salary but no more than the coordination offset under the OPA.
Entry threshold
Under the OPA, there is an entry threshold of CHF 22,050. Incomes below this figure are not insured by the pension fund. The threshold does not apply across the board. The Confederation pension plan – the largest within PUBLICA – has no entry threshold at all, which means that incomes below CHF 22,050 are fully insured too. Check the entry threshold in your pension plan’s regulations so you can take it into account if reducing your working hours.
Use your buy-in potential
Check your buy-in potential on the myPublica online portal or your pension certificate. Discuss with your partner how you can close your future pension gap.
Top up your savings with voluntary/additional savings contributions
You can still save towards your personal retirement pension while working part time. The easiest way to do this is to make voluntary/additional savings contributions. These are deducted from your salary each month and added to your retirement savings.
Take out a private pension too
Employees who are members of a pension fund can also make their own private pension arrangements. Enquire about a pillar 3a plan as an additional way of saving for retirement while also cutting your tax bill.