AVS and complementary services in Canton Bern

Context

In brief

• AVS contributions 5.3% for employees (total 10.6% with employer)
• Contribution gaps reduce retirement pension amount
• Supplementary benefits supplement the minimum living standard for retirees
• Compensation fund of the Canton of Bern manages payment administration

Key facts

• What: AVS pension calculated on contributions paid + supplements from supplementary benefits
• Where: Canton of Bern with cantonal compensation fund
• Who: Employees, employers, UFAS (Federal Social Insurance Office)
• When: Payments throughout the entire working career; pension upon reaching ordinary retirement age
• Employee contribution: 5.3% on gross salary
• Total contribution: 10.6% (5.3% employee + 5.3% employer)

The first pillar in the Canton of Bern

In the Canton of Bern, as in the rest of Switzerland, the Old-Age and Survivors' Insurance (AVS) represents the first pillar of the national pension system. The mandatory contribution for employees is set at 5.3% on the salary, while the employer pays another 5.3% share, bringing the total to 10.6% of the coordinated salary. These payments feed into the calculation of the future AVS pension at the time of retirement and form the basis for access to insurance benefits.

The cantonal compensation fund of the Canton of Bern manages the administration of these payments and maintains the contribution accounting of each insured person. A crucial role to ensure that the contributions paid during the professional career are correctly recorded, accounted for, and subsequently used to calculate the pension. Without this precise administration at the cantonal level, it would not be possible to determine with certainty the amount due to each retiree.

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Operational details

How to calculate the AVS pension in the Canton of Bern

The AVS pension is determined based on the total contributions paid throughout one's working career. The more contributions accumulated and the longer the career, the higher the pension amount at the ordinary retirement age. In the Canton of Bern, as in other cantons, the calculation is made according to uniform federal formulas; you can consult the guide on AVS, LPP and pension for more details on the calculation mechanism. The local administration of the compensation fund ensures that the contribution data is accurate and up-to-date throughout one's professional life.

A continuous working career without gaps allows for the accumulation of the maximum annual contributions, thus optimizing the future pension. However, many people face interruptions in their work career: periods of unemployment, geographical transfers, sector changes, leaves for family or personal reasons, or years in which the income is below the minimum contribution threshold. Each of these situations generates a contribution gap, i.e., a year or period in which no AVS contribution is paid or the payments are below the required minimum.

Concrete Impact of Gaps on Pension Calculation

One of the critical points in the Swiss pension system is how contribution gaps are handled in the pension calculation. Unlike other systems that apply forms of automatic recovery, Switzerland considers gaps as empty periods in the computation of accumulated contributions; these remain in the accounting and reduce the total number of years with full contributions. A worker who accumulates, for example, 5 years of gaps during a 45-year career will see their AVS pension calculated on 40 years of contributions instead of 45, with a proportional reduction in the amount due.

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Key points

How to check your AVS contributions with the Bern compensation fund

To plan your retirement in the Canton of Bern, the first step is to check your contribution statement with the cantonal compensation fund. The Bern compensation fund provides contribution statements upon request, detailing the years of contributions paid and any gaps in your work history. This document is essential for calculating the estimated amount of your AVS pension at retirement.

The check can be done directly at the compensation fund offices or, in many cases, through the online portals provided by the entity itself. Insured individuals have the right to receive a statement of their contribution data regularly; consulting these statements is essential to identify any errors or omissions and to request timely corrections before retirement. It is advisable to check your salary calculator annually to ensure that your contribution data is correct and up-to-date.

Procedure to request supplementary benefits in the Canton of Bern

If the analysis of the statement shows that the future AVS pension will not be sufficient for the guaranteed minimum living standard, it is advisable to inform yourself in advance about the procedures to access supplementary benefits in the Canton of Bern. Supplementary benefits are not automatically granted but require a formal application in which you document your income, assets, and overall financial situation.

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