Research shows that the 1st BVG/LPP revision of 2005 improved coverage for only one-third of new entrants. Two-thirds did not benefit from the improvements.
The 1st revision of the Federal Law on Occupational Retirement, Survivors' and Disability Pension Plans (BVG/LPP) lowered the threshold salary and the coordination deduction with a view to ensuring that a greater number of lower-income employees, especially part-time workers, would be covered by the compulsory 2nd pillar. As a result, about 140,000 more low-income employees are now covered by occupational pension schemes. The majority are women employees with part-time jobs under 50%.
An "evaluation" study using 1st and 2nd pillar calculation models to measure the effects on pension benefits shows that lowering the threshold salary and coordination deduction only improved coverage for one-third of the new entrants. For another third, the lower limits produced no material benefits. And for the remaining third, available income after retirement will not change because any gain in occupational benefits is offset by a commensurate reduction in supplementary benefits. Nevertheless, the revision did contribute to reducing public expenditure by decreasing the amounts payable in addition to AHV/IV //AVS/AI benefits.