What is a management pension?
A management pension – also known as a management pension solution or supplementary management pension provision – is a voluntary supplement to the standard occupational benefits insurance for executives and key employees. It goes beyond basic mandatory occupational pension provision, thereby covering salary components that exceed the statutory salary limits. This provides enhanced risk protection in the event of death or disability and offers the opportunity to accumulate additional retirement savings.
The employees eligible for management pension solutions must be determined based on clear, objective criteria. The employees identified through these criteria constitute the so-called “collective.” Participation in the designated supplementary benefits solution is mandatory for all employees within this collective. Criteria may include, for example, job function, hierarchical position, or salary level.
Why might a supplementary management pension solution be beneficial?
Mandatory occupational benefits insurance (the statutory OPA scheme) covers salary components only up to the legally defined maximum of CHF 90,720 (as of 2026). For earnings exceeding this limit, pension gaps can arise because the excess salary components are not taken into account under the statutory scheme. Legislators therefore allow for pension solutions covering salary components above this threshold. Many companies take advantage of this option to tailor occupational pension provision to the specific needs of the relevant employee groups. In doing so, they improve these employees’ pension coverage while simultaneously enhancing their own appeal as employers – both in attracting new talent and in retaining existing staff for the long term.
When designing such extra-mandatory pension solutions, it is important to carefully assess the needs of the specific employee group and align the plan with the company’s existing pension fund arrangement. Particular care must be taken to ensure compliance with the fundamental principles of occupational benefits insurance – namely suitability, the insurance principle, equal treatment, and systematic planning. This approach enables the creation of an attractive, comprehensive pension fund solution.
What are the key features of management pensions?
Flexibility
Since statutory minimum benefits are already covered by the so-called “basic solution,” supplementary solutions for management offer great flexibility in the design of insured benefits. For instance, not only the level of insured salary, but also the amount of savings contributions or the scope of additional risk benefits, covering death and disability, can be flexibly determined and optimally tailored to the specific group of insured employees.
Supplementary risk benefits
Management pensions can be structured to provide not only for the accumulation of additional retirement capital, but also for extended benefits in the event of death or disability. This allows existing pension gaps to be specifically reduced, particularly for higher income levels.
Targeted enhancement of employer appeal
With a management pension solution, companies can add an attractive benefit to their compensation package, as the employer covers at least half of the resulting costs here too. This allows you to position yourself more effectively as an employer and offer qualified staff additional financial value. It helps you attract executives and key personnel, and retain them for the long term.
Tax advantages
As with basic pension provision, employers can book contributions to management pension solutions as business expenses, provided the aforementioned principle of collectivity is upheld and statutory minimum requirements regarding insurance principles and suitability are met.
Employees also derive tax benefits from management pension solutions. On the one hand, the contributions they make reduce their taxable salary. On the other, any additional voluntary purchases of benefits can be deducted from taxable income, provided the statutory conditions are met.
Reduction of redistribution within the pension fund
Dedicated management pension solutions offer the advantage of largely avoiding redistribution between different groups of insureds within the pension fund. Since these solutions are not required to finance statutory minimum benefits under OPA, the contributions and benefits directly benefit the specific group of individuals defined for the plan.
Our solutions at a glance
AXA offers two tailored solutions for management pension provision: Top Invest and 1e Invest. The two solutions differ primarily in how the accumulated retirement capital is invested and the form in which it can be drawn upon reaching retirement age.
The solution that suits your company depends on how you wish to structure pension provision for your executives and key employees. Key similarities and differences between Top Invest and 1e Invest:
What is the difference between Top Invest and 1e invest?
| Comparison criteria | Top Invest | 1e Invest |
| Insured salary components | Salary components exceeding mandatory limits (salary portions above three times the maximum OASI old-age pension; currently CHF 90,720) | Salary components above the statutory threshold for 1e pension plans (1.5 times the upper OPA limit; currently CHF 136,080) |
| Investment principle | Collective, pooled investment of retirement assets | Individual investment of personal retirement assets for each insured. |
| Investment strategy | The Foundation Board determines the investment strategy. | The insured selects individually from the investment strategies defined by the Foundation Board. |
| Investment risk | The Foundation bears the investment risk. Any investment losses affect the funding ratio, meaning that a funding shortfall is possible. | The insured bears the investment risk personally. As such. any market losses directly affect the amount of the personal retirement savings. |
| Interest / investment performance | Der Stiftungsrat legt die Verzinsung jährlich auf Grundlage der erzielten Anlagerendite und der finanziellen Situation der Stiftung fest. | The individual net investment performance or market gain is credited to the personal retirement savings. |
| Receipt of benefits upon retirement | Lump sum, annuity, or a combination of both | Payment of retirement savings capital exclusively as a lump sum; no annuity option available |
| Death and disability | Benefits due if an insured becomes disabled or dies are defined in the benefits plan and are reinsured with AXA Life Ltd. | Benefits due if an insured becomes disabled or dies are defined in the benefits plan and are reinsured with AXA Life Ltd. |
| Digital features | Direct online access for information, simulations, and changes. | Direct online access for information, simulations, and changes, as well as the option to digitally select and modify the investment strategy. |
Tailoring occupational benefits insurance to the company
To find the right management pension solution for your company, the needs of the relevant employee group should be carefully examined, and the management pension solution aligned with the existing pension fund arrangement.
Frequently asked questions about management pensions
Are management pensions mandatory?
No. It is voluntary for a company to offer a management pension solution. However, if a specific group (referred to as a "collective") is defined based on objective criteria, all employees meeting those criteria must be included in the corresponding pension plan.
How can a management collective be defined?
Affiliation must be determined based on objective criteria, such as job function, hierarchical position, or salary level. All employees meeting these criteria must be included in the collective. The same plan regulations apply to them.
Is a 1e pension solution the same as management pension plan?
A 1e pension solution is a special form of management pension covering insurable salary portions exceeding 1.5 times the upper OPA limit (CHF 136,080 as of 2026). Insureds choose their own investment strategy and bear the associated investment risk.
Services for AXA occupational benefits customers
Your SME or startup can take advantage of a complete range of services covering administration of occupational benefits as well as employee health and attractive fringe benefits – allowing you to focus on your core business.
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