New limits for occupational and private pension plans in 2011

The Federal Council has adjusted AHV/AVS and IV/AI pensions to the increase in wages and the cost of living. At the same time, the calculation bases for occupational benefits were modified. This has implications for tied pension assets.

For compulsory benefits, the coordination deduction will increase from CHF 23,940 to CHF 24,360 for 2011, and the entry threshold from CHF 20,520 to CHF 20,880. The maximum tax deductible allowance for tied pension assets (pillar 3a) will equal CHF 6,682 (currently CHF 6,566) for persons with a 2nd pillar plan. Persons without a 2nd pillar will be allowed to contribute a tax deductible amount of CHF 33,408 (currently CHF 32,832) to their 3rd pillar.

The BVG/LPP coordination deduction of CHF 24,360 is designed to coordinate 2nd pillar and 1st pillar benefits. The coordination deduction equals 87.5% of the maximum simple AHV/AVS pension. Since the latter will be increased to CHF 2,320 in 2011, the coordination deduction will increase commensurately. For 2011, the minimum AHV/AVS//IV/AI pension will increase from CHF 1,140 to CHF 1,160 per month.

The minimum amounts for self-employed persons and for persons who are not gainfully employed will rise from CHF 460 to CHF 470 per year for AHV/AVS, IV/AI and EO/APG contributions while the minimum AHV/AVS//IV/AI voluntary contribution will increase from CHF 892 to CHF 904.