Liberty News – New limits applicable as of 1 January 2019

Liberty News – New limits applicable as of 1 January 2019

As of 1 January 2019, AHV/IV//AVS/AI pensions will be adjusted to reflect current price and wage trends.

On 1 January 2019, mandatory second pillar survivors' and disability pensions in payment since 2015 will be adjusted for the first time to reflect changes in the cost of living. The increase will be of 1.5%.

In 2019, on the other hand, there will be no change in the survivors' and disability pensions which commenced in 2008 or between 2010 and 2014, and have never been adjusted because the September 2018 index was under the price index in the year they started.

The same applies to the survivors' and disability pensions that came into payment before 2010. These cases will be reviewed in the framework of the next AHV/AVS pension increase, i.e. not before 1 January 2021.

The new minimum AHV/IV//AVS/AI pension has been set at CHF 14,220 per year, and the maximum pension at CHF 28,440 per year.

Changes have also been made in second pillar and pillar 3a limits:

The BVG/LPP entry threshold has been increased to CHF 21,330 and the BVG/LPP coordination deduction has been set at CHF 24,885. The maximum insured BVG/LPP salary is henceforth CHF 60,435

As of 1 January 2019, the applicable limits for tied retirement savings plans (pillar 3a) are:

  • for gainfully employed persons who are members of a pension fund: CHF 6,826
  • for gainfully employed persons who are not members of a pension fund: 20% of their net earnings, max. CHF 34,128.