"OASI 21" reform. Implementation at Helvetia.

With "OASI 21", all pension funds will be obliged to enable insured persons to take early retirement from the age of 63. In Helvetia's pension solutions, women and men can already retire from the age of 58. This will not change.

In the case of early retirement, the so-called pension conversion rates – with which the existing retirement savings are converted into a retirement pension – are reduced due to the longer retirement period. The conversion rates for ordinary retirement now refer to the retirement age of 65 for men and women. Special rates apply for women whose OASI reference age is below 65 (born in 1963 and earlier).

You can find the conversion rates of the various Group Foundations for early, ordinary and deferred retirement on the respective Group Foundation website under "Conversion rates" (see at the beginning for links).

We speak of deferred retirement if an insured person continues to work beyond retirement age and either does not yet draw or defers the withdrawal of retirement benefits.

The Helvetia Group Foundations have already been offering the opportunity to continue pension insurance after reaching retirement age for some years now. The so-called "Continued insurance pursuant to Art. 33b LOB" is laid down in the General Regulation Provisions and can be used by all insured persons who continue to work, unless the pension plan expressly excludes this. Continued insurance is characterized by the fact that savings contributions are made by employers and employees even after the person reaches retirement age and the retirement savings thus continue to accrue.

With "OASI 21", a new, alternative option for deferred retirement is being introduced: "Deferral of retirement benefits pursuant to Art. 13b LOB". Under both solutions insured persons can defer the withdrawal of retirement benefits until they stop working – but no later than age 70. There are differences, for example, when it comes to retirement savings: If the retirement benefits are deferred, the savings contributions cease to apply after reaching retirement age; only interest will apply to the existing retirement savings for the duration of the deferral. Compared with continued insurance, this naturally results in somewhat lower retirement benefits. The two options are described in detail in our information sheet on deferred retirement.

Insured persons who have opted for continued insurance when they reach retirement age can later switch to deferral of retirement benefits. This also applies to persons who are already covered by continued insurance when "OASI 21" comes into effect.

Deferred retirement is possible in full or – in combination with semi-retirement – in part. The forms for applying for continued insurance pursuant to Art. 33b LOB or for deferral of retirement benefits pursuant to Art. 13b LOB can be found under "Forms".

You don't always have to retire in one single step. Sometimes it makes sense or is even necessary to reduce one’s working hours in several stages. At the insured person's request, retirement benefits can also be drawn from the pension fund in several stages – this is referred to as semi-retirement. Part of the retirement savings is paid out in the form of a retirement pension or retirement capital, while the pension assets continue to accrue on the basis of the income still being earned.

With "OASI 21", all insured persons are entitled to agree on semi-retirement with their pension fund. This has long been possible with the Helvetia Group Foundations. However, it has had to be adapted to the new legal framework.

Retirement benefits can now be drawn in up to five stages between the ages of 58 and 70. The prerequisite for the first semi-retirement stage is that at least 10% of the retirement benefits are withdrawn. There is no minimum amount for the subsequent stages.

The maximum amount of a semi-retirement stage that takes place before retirement age is regulated by law: The scope of semi-retirement may not be higher than the simultaneous reduction in salary. However, it no longer has to exactly match the reduction in salary or the degree of employment, but can be smaller. After reaching retirement age, this restriction no longer applies.

Example: First semi-retirement stage before retirement age

Maria Sample reduces her working hours at the age of 62, which reduces her annual salary from CHF 100,000 to CHF 60,000. The salary reduction therefore amounts to CHF 40,000 or 40% of the salary before the reduction in working hours. The insured person would like to take semi-retirement. She can now choose the scope of semi-retirement: between 10% (since this is the first semi-retirement stage) and 40% of the current retirement benefits. On the other hand, a higher percentage (e.g. 50%) is not permitted.

With most pension funds, retirement benefits can be taken either as a lifelong pension or as a one-off capital payment. The insured persons decide for themselves which form of benefit is right for them. With "OASI 21", this option is restricted by the legal limit on the permitted number of capital withdrawals.

Gaps in pension provision may arise due to salary increases or as a result of a lack of contribution years. Insured persons have the option of filling such gaps in whole or in part by voluntarily paying into the pension fund.

Under "OASI 21", purchases of insured persons who are receiving retirement benefits from the occupational benefit scheme (retirement pension) or have received benefits (retirement capital) are regulated by law. However, the provisions largely correspond to a practice that is already in place. Specifically, retirement benefits already drawn must be deducted from the maximum possible purchase amount in certain cases. This applies in particular in the following situations:

• An insured person who has taken early retirement resumes employment and is actively insured again in the occupational benefit scheme.
• An insured person who has partially retired increases their degree of employment again.

In order to safeguard this provision, pension funds and vested benefits institutions are now obliged to pass on information on the extent of the retirement benefits received in the event of a change of institution.

Vested benefits that are parked in a vested benefits policy or in a vested benefits account and parts of the pillar 3a assets will be taken into consideration in respect of the purchase as before. This also applies to pension assets that have remained in the previous employee benefit institution. This may be the case, for example, if an insured person remains insured pursuant to Art. 47a LOB. When joining a new employee benefit institution, part of the employee benefit assets sometimes remain in the continued insurance solution of the previous pension fund.

Assets in vested benefits accounts or in vested benefits policies may be withdrawn at the earliest five years before the reference age – in this respect, nothing changes with "OASI 21". However, due to the gradual increase in the reference age for women, the earliest possible age of receipt will shift depending on the year of birth (see table).

The insured person may continue to defer receipt of benefits for a maximum of five years after reaching the reference age. However, in future this will only be possible if the insured person is still gainfully employed. If this is not or no longer the case, the assets must be withdrawn when the reference age is reached or if, at a later date, the person ceases to work.

However, there is a generous transitional period for this change: proof of continued employment need only be provided for the first time on 1 January 2030. Persons who reach or have already exceeded the OASI reference age in 2024 can therefore leave their assets where they are without proof of gainful employment up to the age of 70 (men) or 69 (women) at the latest.