Unpaid leave

Unpaid leave

The two options open to you for the occupational pension plan in the case of unpaid leave

If an employee's unpaid leave lasts longer than a month, the occupational pension plan can be continued during the entire unpaid leave for up to twelve months. As an employer you are free to decide how to continue your employee's insurance during their unpaid leave. 

There is either the option of unchanged continuation of the insurance or the option of limited continuation of the risk insurance for leave that lasts longer than one month.

The best approach is for the employer and employee to discuss the various possibilities and choose the right option for them.

This is how you proceed as an employer

Option 1: Continuation of the insurance without changes

  • The insurance will continue without change during the unpaid leave.
  • All insured benefits (old age, disability and death) are calculated on the basis of the annual salary last reported.
  • The insured person bears the entire cost.
     
  1. You as the employer collect the premiums from the insured person.
  2. You transfer the premiums to us as usual.

Option 2: Continuation of risk insurance

  • Invalidity and death benefits will continue to be insured without changes.
  • The savings process is interrupted during the unpaid leave.
  • There are two possibilities for premium financing:

    Option 1:

    The financing of premiums for the risk insurance remains unchanged (allocation of employer and employee contributions).

    Option 2:

    The insured person pays the entire premium. You as the employer collect the premiums from the insured person and transfer them to the foundation; the employer remains liable towards the foundation for all premiums.
  1. Please send us the completed form Notification of unpaid leave by mail or email to:

    Zurich Insurance Company Ltd
    Help Point BVG
    P.O. Box
    8085 Zurich
    bvg@zurich.ch
  2. You transfer the premiums to us as usual. Depending on the premium financing, you will collect the premiums from the insured person beforehand.

This is how you proceed as an employee

Option 1: Continuation of the insurance without changes

  • As an insured person you do not have to do anything.
  • All benefits (old age, death and disability) will remain insured on the basis of your last reported annual salary.
  • You as the insured person bear the entire costs.
  • Your employer will collect the premiums from you and transfer them to Vita.

Option 2: Continuation of risk insurance

  • As an insured person you do not need to do anything; your employer will notify us of your unpaid leave.
  • Disability and death benefits will continue to be insured without changes.
  • The premium payments for the savings process are temporarily discontinued during the unpaid leave.
  • There are two possibilities for premium financing:

    Option 1:

    The financing of premiums for the risk insurance remains unchanged (allocation of employer and employee premiums).

    Option 2:
    You as the insured person will pay the entire premiums. Your employer will collect the premiums from you and transfer them to the foundation.

Online employee pension plan

As simple as e-banking

  • Manage your contracts and data regarding pension planning
  • Plan your liquidity on a basis of a daily updated balance
  • Calculate comfortably the contribution for new employees online

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