Coordination deduction
The amount subtracted from your salary to find the coordinated salary on which mandatory pension-fund contributions are paid.
It exists because AHV already covers part of income. The deduction is set every two years with the AHV pensions. Many pension plans insure more than the legal minimum and use a smaller deduction.
Tools that use it
Related terms
- BVG (pension fund)The second pillar, the occupational pension fund that employees and employers pay into, paid out as a pension, a lump sum or both.
- Pension certificate (Vorsorgeausweis)The yearly statement from your pension fund showing your balance, credits, projected pension and buy-in potential.
- Conversion rateThe percentage of your pension-fund balance paid each year as a lifelong pension.
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Swiss pensions
Your pension fund before 65: annuity, lump sum or leave it
What you can do with second-pillar money if you stop working early: early retirement, a vested benefits account, a lump sum, and the tax and risk trade-offs.