Multiple employers - disadvantageous from a pension perspective?

Let us take a closer look at a

comparative example:

Variant A: A person earns a gross annual salary of CHF 84,500 (employment level 100%) with one employer.

Variant B: A person earns a gross annual salary of CHF 42,250 with three employers plus CHF 25,350 plus CHF 16,900 (degree of employment 50%; 30%; 20%).

The gross annual income is therefore the same in both variants. But what are the consequences for the pension plan?

AHV/IV

All wages are subject to AHV, regardless of whether variant A or B is used. Thus, this has no influence on the amount of the total contributions and also the resulting benefits. 

Accident insurance UVG

The salary subject to AHV is insured. The earnings that are decisive for a pension are the wages that the insured person received from one or more employers in the year before the accident. Thus, working for several employers has no influence on the possible UVG benefits. However, it will be important that the working time of 20% is at least 8 hours per week. This is the case if the weekly working time for a full employment with this employer is 40 or more hours. If the working time of 8 hours is not reached, the insured person would only be insured for occupational accidents with this employer, but not for non-occupational accidents. 

Daily sickness benefit insurance

This insurance is not a social insurance. Here it depends on the insurance contracts agreed upon by the employers. This can be advantageous or disadvantageous if you work for several employers. 

Pension fund

When working for several employers, attention must be paid to the pension fund benefits. This can result in significant disadvantages. In the case of the pension fund, a coordination deduction is generally made from the salary subject to AHV (corresponds to 7/8 of the maximum AHV pension). According to the BVG, this is currently CHF 25,095. If in variant B the employers do not provide any special regulations for part-time employment, the situation is as follows (assumption: all pension funds make the coordination deduction according to the BVG):

Variant A:

Insured salary: CHF 59,405 (84,500 - 25,095).

Variant B:

AG1; insured salary CHF 17,155 (42,250 - 25,095)

AG2; insured salary CHF 3'585 (minimum insured salary according to BVG, since after coordination below)

AG3; no insurance, since annual salary is lower than entry salary according to BVG (CHF 21,510)

In variant B, the total insured salary is therefore only CHF 20,740, which is around 65% lower than in variant A. The insured salary is also lower in variant A. Accordingly, the benefits to be expected are also massively lower; especially in the old-age pension. The insured person could voluntarily take out BVG insurance for all three jobs (Art. 46 BVG) with the supplementary institution or with one of the pension funds - if this is permitted (which is almost never the case). From the employee's point of view, it would therefore be crucial in variant B that the coordination deduction is adjusted to the part-time work (coordination deduction AG1: 50% of CHF 25,095; AG2 30% and AG3 20%). Several pension funds have this in their regulations, but by no means all.

Source: Mendo AG; Info 8/22