The regulatory framework for occupational pensions

The Swiss occupational pension system is governed by a legal framework that is at once strict and flexible. It is built on two cornerstone texts:

  • LPPFEDERAL ACT ON OCCUPATIONAL OLD-AGE, SURVIVORS' AND INVALIDITY PENSION PROVISION
  • OPP2ORDINANCE ON OCCUPATIONAL PENSION PROVISION

Together, they set out the investment rules, the duties of governing bodies and the rights of insured members.

View the LPP on Fedlex

Key principles of OPP2

Article 51 OPP2

Returns in line with the market

Article 51 OPP2 requires pension institutions to aim for a return in line with what the market offers, while safeguarding the security and diversification of their investments.

Article 55 OPP2

Fiduciary duty

Article 55 OPP2 sets out the fiduciary duty of governing bodies: every investment decision must be taken in the exclusive interest of insured members, with loyalty and transparency.

View the full OPP2

Integrating ESG criteria into governance

In July 2022, ASIP (the Swiss Pension Fund Association) published industry recommendations on integrating ESG (environmental, social and governance) criteria into the governance of pension institutions.

These recommendations follow the “comply or explain” principle:

  • If the fund integrates ESG criteria, it must explain how they are implemented.
  • If not, it must justify the decision in its annual report.

Canopia partnership

To support institutions in this process, Canopia is QualiPension's partner for analysing and implementing ESG strategies — in particular, measuring carbon footprints and aligning governance with sustainability objectives.

E

Environment

Climate change, CO2 emissions, biodiversity, resource management

S

Social

Working conditions, human rights, diversity, health and safety

G

Governance

Business ethics, board independence, transparency, remuneration

Transparency and information for insured members

Pension institutions must be fully transparent with their insured members, employers and the supervisory authorities. This includes:

Annual report

An annual report on the fund's financial position and investments

Management fees

Disclosure of management fees (TER)

Access to documents

Access to pension certificates and fund regulations

These rules are set by the Occupational Pension Supervisory Commission (CHS PP) to ensure trust and comparability between institutions.