At its meeting held in Bern on 12 June 2026, the Swiss Federal Council approved a series of amendments to two ordinances governing the third pillar and mandatory occupational pensions: OPO 2 (Occupational Pension Ordinance) and OPO 3 (Ordinance on Tied Individual Pension Provision, commonly known as Pillar 3a). The new provisions provide greater flexibility in estate planning, redefine how pension adequacy is calculated in light of the introduction of the 13th AHV pension payment, and expand—within prudent limits—the tools available to pension funds for managing foreign exchange risk. Here is what will change and when.
Pillar 3a: Greater Freedom in Choosing Beneficiaries from 1 January 2027
Under the current rules, the order of beneficiaries in tied individual pension provision (Pillar 3a) is relatively rigid. It gives priority to the surviving spouse or registered partner while limiting the rights of direct descendants and other second-ranking beneficiaries. This rigidity becomes particularly problematic for blended families: individuals with children from previous relationships are currently unable to designate those children as beneficiaries of their Pillar 3a assets.
1 January 2027, following amendments to paragraphs 2 and 3 of Article 2 of OPO 3, account holders will enjoy greater flexibility in estate planning. They will be allowed to redefine the order of beneficiaries between the first and second beneficiary groups—a flexibility that already exists within the second pillar and vested benefits legislation.
Those who choose not to make any changes will not be affected, and the current statutory order of beneficiaries will remain in place.
The Impact on Pension Institutions and Beneficiaries
The Pillar 3a reform also creates new operational obligations for pension institutions. They will be required to update their pension regulations, obtain approval from the competent supervisory authority, and inform account holders about the new planning options.
Beneficiaries may also be affected. Depending on the account holder’s decisions, someone who is currently the sole beneficiary may have to share the pension assets with others in the future, while individuals who were previously excluded may become beneficiaries. This makes it particularly important to review existing beneficiary designations with a financial advisor.
OPO 2: The 13th AHV Pension Payment Excluded from the Pension Adequacy Calculation from 1 August 2026
The amendments to the Occupational Pension Ordinance (OPO 2) will enter into force on 1 August 2026, ahead of the first payment of the new 13th AHV pension, scheduled for December 2026.
Article 1 of OPO 2 establishes the limits used to determine whether an occupational pension plan is considered adequate, taking into account benefits provided by the AHV. Paragraph 3 specifies that, for annual salaries exceeding CHF 90,720, the combined benefits from the occupational pension and the first pillar (AHV) may not exceed 85% of the employee’s final salary before retirement.
The amendment introduces an important clarification: the new 13th AHV pension payment will be explicitly excluded from this adequacy calculation.
The rationale is straightforward. If pension funds were required to include the additional AHV payment and this resulted in the 85% threshold being exceeded, they would have to reduce occupational pension benefits—but only for future retirees, since pensions already in payment are protected by acquired rights. This would create unequal treatment between current and future pensioners, undermining the very purpose of the 13th AHV payment, which is to increase overall retirement income and strengthen pensioners’ purchasing power.
Foreign Exchange Risk Hedging: More Flexibility for Pension Funds
Another amendment to OPO 2 allows pension funds to hedge foreign exchange risk by temporarily using repurchase agreements (repos).
To meet liquidity requirements arising from these hedging operations, pension institutions may obtain financing through repos of up to 3% of their total assets.
This limit is deliberate. Repurchase agreements create leverage and therefore involve higher financial risks. For this reason, lawmakers permit their use only within clearly defined limits and require pension institutions to consider alternative liquidity measures whenever financing needs become significant.
Why Now Is the Right Time to Review Your Pension Planning
The amendments to OPO 2 and OPO 3 introduce significant changes to Switzerland’s occupational pension system. Individuals with blended families, children from previous relationships, or those who have never reviewed the beneficiary designation of their Pillar 3a account should take this opportunity to reassess their arrangements. Likewise, anyone approaching retirement should understand how the new 13th AHV pension payment will affect the calculation of their retirement benefits.
The BIG Insurance Brokers team supports both private individuals and businesses in estate and retirement planning, providing tailored solutions designed around each client’s specific needs. Contact us for a personalized consultation to review your pension situation.
