(joint with Michael Siegenthaler, KOF Analysen 2021(1))
We use data from the Swiss Earnings Structure Survey (SESS) from 1994 to 2018 to document the design of employee contributions to occupational pension funds in Switzerland. We find that contribution rates increased more strongly with age in 2018 than in 1994. The old age bonuses that increase discontinuously at certain age thresholds lead to stepwise increases in contribution rates. These steps are larger in 2018 than in 1994. According to the data, at least a third of workers who earn less than the mandatory entry earnings pay non-mandatory contributions. Due to data limitations, it is more difficult to establish these magnitudes for workers aged 18 – 24. There are considerable differences in the share of employees benefiting from non-mandatory contributions across industries. The share is not systematically related to median wages in industries.
Here you can find the whole report: German.