No money after death Wife gives pension fund 750,000 francs - widower goes away empty-handed

After the death of his wife, a widower from Schaffhausen receives a widower's pension. But 750,000 francs that she voluntarily paid into the pension fund before her death may have been for nothing. The reason is a seemingly inconspicuous detail in the regulations.

Thinking about later sooner: To improve their financial situation in old age, many Swiss people rely on voluntary payments into their pension fund. These purchases not only increase the retirement pension, but also bring tax advantages - especially for those over the age of 50.

However, these payments have their pitfalls. As a recent case in Schaffhausen shows, it is worth studying the pension fund 's pension regulations carefully. Because in the event of death - contrary to what many insured persons expect - payment of the amount to the surviving dependants is by no means guaranteed.

Wife became unable to work due to cancer

Thomas Gisler can tell a tragic tale of this. As he told NZZ, his wife lost her battle with cancer in March 2023. Before the Canadian-born woman passed away at the age of just 43, she had put a total of CHF 750,000 into the second pillar of the Johnson & Johnson Switzerland pension fund in four stages.

As Gisler explains, his wife was diagnosed with cancer in 2019, just a few months after the birth of their child. As a result, she became 100 percent unable to work. As a result, her employment relationship with Johnson & Johnson came to an end. At this point, her pension fund assets amounted to around CHF 1.1 million.

Costs in old ageRetiring with 1.5 million francs - is that enough?

This sum was - so far, so usual - subsequently transferred to a vested benefits foundation. When his wife died, Gisler received a message telling him to transfer the money back to the pension fund. He was also promised that he would receive a refund of the voluntary purchases.

Widower complains: "The payments would be lost"

To date, however, Gisler has not seen any of the money. The application to the Board of Trustees requested by the pension fund was rejected. He was informed by e-mail that the pension fund's regulations do not provide for the payment of purchases "in the event of your wife's death as an IV pensioner".

The fact that the reimbursement was not made is due to a small but subtle detail in the regulations. Because the wife had drawn a disability pension retroactively due to her incapacity to work, she was not listed as an active insured person in the pension fund at the time of her death.

Although the widower and their child now receive widower's and orphan's pensions, the amount would have been the same as if the woman had never paid into the pension fund. "The voluntary payments of 750,000 francs would have been lost," Gisler therefore complains to NZZ.

Disability pension puts a spanner in the works for widower

His deceased wife received the preliminary decision from the Social Insurance Institution (SVA) about her disability pension two days before her death in the palliative care unit. Without the decision, she would have died as an actively insured person. In this case, the surviving dependants would have received 330,000 francs based on the risk benefits noted on her pension fund certificate.

As it is, however, Gisler is facing a financial zero round, which makes him bitter: You could "fall through the cracks with pension fund purchases in the worst-case scenario". A lawsuit is currently pending at the Schaffhausen High Court, in which he is demanding at least a payout of the voluntary purchases amounting to CHF 750,000 - the outcome is uncertain.

Pension fund keeps a low profile

Thomas Moser, spokesman for Johnson & Johnson, is keeping a low profile when asked by the NZZ: "The Johnson & Johnson pension fund recommends that all employees carefully check their individual situation and the provisions in the pension fund regulations before making voluntary purchases."

He also points out that the payment of a lump-sum death benefit is a voluntary, non-compulsory benefit. This is also confirmed by Lukas Müller-Brunner, Director of the pension fund association Asip. "A pension fund is not a welfare fund," he says in response to the sometimes excessive entitlement attitude of insured persons. A payment does not automatically entitle them to "their money".

Instead, contributors expect benefits in accordance with the law and regulations. "These payments can be higher or lower than the assets saved," Müller-Brunner clarifies.