Changing occupational pension institution (BVG/LPP)

Good reasons to consider a change

• A plan that no longer matches company policy.
• Costs or governance considered insufficiently transparent.
• A significant change in the workforce.
• Inadequate administration services.

Employees' prior agreement

Terminating the affiliation agreement and joining a new institution require the agreement of employees or, where applicable, their representatives. This agreement must be obtained before termination: simply informing them afterwards is not sufficient.

For their agreement to be informed, employees must have understandable information about the options being compared. The practical arrangements — who represents employees and how agreement is obtained and documented — depend on each business and must be examined.

The parties involved

• Management, which prepares the proposal.
• Employees or their representatives, whose prior agreement is required.
• The current institution, for the conditions of departure.
• The future institution, for affiliation and the transfer of insured members.
• Pension recipients and people with an incapacity for work, whose position must be clarified.

The steps

• Analyse the current plan and the reasons for changing.
• Compare quotations on a like-for-like basis.
• Inform employees and obtain their prior agreement, documented in writing.
• Terminate the affiliation within the notice period and in the form required by the contract.
• Conclude the new affiliation agreement and organise the transfer.

Points requiring attention

The treatment of pension recipients and ongoing incapacity cases is a central point to negotiate. The financial conditions of departure must be understood before the decision, not afterwards. Each individual situation warrants analysis.

We support the process on the business's side; we do not give employees individual advice on their personal pension arrangements.