2nd pillar after death: who gets what, and in what order.
The 2nd pillar (LPP) does not follow ordinary inheritance rules. Beneficiaries set by law and fund rules, priority order, survivor pensions: here is how it works.
When an insured person dies, their 2nd pillar (LPP, Swiss occupational pension) does not fall into the ordinary estate. It has its own regime, defined by the LPP (articles 18 to 22f) and the rules of each pension fund. Spouse, registered partner, children, cohabiting partner… who gets what, and in what order? Here is the cascade.
The two types of possible benefits
| Type | Description | Beneficiaries |
|---|---|---|
| Survivor's pension | Monthly periodic payment, for life for the spouse | Spouse, registered partner, children |
| Death capital | One-off capital payment — according to fund rules | Spouse OR children OR other designated beneficiaries |
The survivor's pension is owed by every fund (LPP minimum). The death capital is optional and depends on the fund's rules — some funds pay it, others do not.
Order of beneficiaries (statutory cascade)
LPP article 20a defines the order in which beneficiaries are identified. If rank 1 exists, it takes precedence; otherwise we move to the next rank.
| Rank | Beneficiary | Conditions |
|---|---|---|
| 1 | Spouse / registered partner | Marriage or registered partnership at the time of death |
| 2 | Eligible children | Minors OR students up to age 25 inclusive OR disabled children |
| 3 | Cohabiting partner (if fund rules allow) | Joint household ≥ 5 years OR common children OR maintenance obligation — prior designation required by most funds |
| 4 | Other designated beneficiaries | Parents, siblings, legal heirs — according to fund rules |
How the spouse pension is calculated
The spouse's pension is typically 60% of the disability or retirement pension the deceased insured person would have received. Order of magnitude:
Christian has CHF 480,000 in LPP assets at the time of death. His widow Anne is 50. Standard fund, 6% conversion rate.
- LPP assets at death
- CHF 480,000
- Projected pension at 65
- CHF 36,000/year
- Spouse pension rate
- 60%
- Anne's annual pension
- CHF 21,600/year for life unless remarriage
- Anne's monthly pension
- CHF 1,800/month
- Orphan pension per child
- CHF 7,200/year 20% per child, up to 18 or 25 years
Special cases
The divorced spouse
The divorced spouse may be entitled to a survivor's pension if the marriage lasted more than 10 years AND the ex-spouse had common children to care for OR paid maintenance (LPP article 20, OPP2 article 19). This is more restrictive than the married-spouse pension.
The adult child in education
A child aged 18 to 25 is entitled to an orphan's pension only if they are in education (studies, apprenticeship). Beyond age 25, no more pension, unless the child is disabled.
The cohabiting partner without designation
If the fund allows designation but none has been made, the death capital passes to the next rank (children, other beneficiaries). The cohabiting partner has no entitlement. No remedy possible after death.
The tax impact of the death capital
The death capital received by beneficiaries is taxed under cantonal rules:
- Spouse / registered partner: generally exempt or taxed at a very reduced rate.
- Direct children: reduced rate in every canton.
- Cohabiting partner: variable rate, sometimes high (taxed at the "unrelated persons" rate in some cantons).
- Other beneficiaries: highest rate.
Tax is owed in the beneficiary's canton of residence at the time of death, unlike a lifetime LPP withdrawal which is owed in the foundation's canton.
Actions to take as an insured person (during your lifetime)
- Check your fund's rules. Not all funds offer the same survivor benefits. Read the "Death" section of the rules.
- Formally designate cohabiting beneficiaries. Fund form, signature, keep a copy.
- List all LPP assets (active fund + vested benefits + Central 2nd-Pillar Office) and share the list with a trusted relative. Without this list, heirs may miss several forgotten accounts.
- If you have a cohabiting partner with children, check that the orphan's pension is indeed provided for in the rules (not every fund recognizes cohabiting partners in the same way on this point).
Actions to take as an heir (after death)
- Notify the funds of the death. The active fund must be notified immediately by relatives.
- Conduct an exhaustive asset search. The Central 2nd-Pillar Office (Auffangeinrichtung BVG) in Berne runs free searches for entitled persons, upon presentation of the death certificate and a document attesting heir status. This does not cover private foundations — they must be queried one by one.
- Apply for the death capital. Depending on the fund, capital is not paid automatically: a formal application from beneficiaries is required.
- Calculate cantonal taxation. Tax differs depending on the beneficiary's relationship (spouse vs cohabiting partner vs other).
- 01The LPP follows its own statutory cascade (LPP art. 20a) — independent of the civil will.
- 02Spouse and dependent children are automatically beneficiaries. A cohabiting partner needs a prior written designation.
- 03Spouse pension = typically 60% of the theoretical pension. Orphan pension = 20% per child.
- 04For heirs: run an exhaustive asset search (Central office + private foundations) before any estate accounting.
For divorce (the other situation where LPP changes hands), see our dedicated article. To understand the assets before planning, read how to read your pension certificate. For the general context, see the introduction to the 2nd pillar.