Periods without employment: what happens to your 2nd pillar.
Unemployment, maternity, sabbatical, long-term illness: your LPP does not stop but is not fed either. Here is how each period is treated and the risks to anticipate.
A career is almost never linear. Unemployment, maternity leave, sabbatical, long-term illness, transition between two roles — each interruption affects your 2nd pillar. Not usually dramatic, but worth knowing to avoid losing or leaving assets to sleep.
Case 1 — Unemployment
You are registered with unemployment insurance and receive benefits. Your LPP is treated in two ways depending on the benefit level:
| Situation | LPP contribution? | Risk coverage? |
|---|---|---|
| Benefits > CHF 22,680/year (LPP 2025 threshold) | Yes — contributions paid by the unemployment fund to the Supplementary Institution LPP | Yes (death, disability) |
| Benefits < CHF 22,680/year or internship / training | No — no mandatory contribution | Often suspended |
| Without unemployment benefits (entitlement ended) | No | Suspended — assets transferred to vested benefits |
Case 2 — Maternity leave
In Switzerland, statutory maternity leave lasts 14 weeks minimum (16 in some cantons). During this leave:
- You receive the maternity allowance (80% of salary, capped at CHF 220/day in 2024).
- Your employment contract is maintained — you remain insured under your employer's pension fund.
- The LPP contributions continue (often calculated on the allowance, sometimes on the full salary depending on the rules).
- Risk coverage (death, disability) remains active.
Beyond statutory leave, if you take additional unpaid leave, maintaining LPP becomes a subject to negotiate with the employer (often with voluntary continuation — see case 4).
Case 3 — Sabbatical leave
No legal framework in Switzerland — it is a free agreement between employer and employee. Three common configurations:
| Sabbatical type | LPP status |
|---|---|
| Short unpaid leave (≤ 1 month) | Often maintained without interruption (employer's HR policy) |
| Medium unpaid leave (1-3 months) | Often suspended. Continuation possible via voluntary contribution (employee pays own share + employer share) |
| Long leave (3-12 months) | Removed from headcount, transfer to vested benefits. Reintegration on return if the employer holds the post |
Case 4 — Long-term illness
In case of prolonged incapacity for work, two mechanisms protect your LPP:
- During partial or temporary incapacity (under daily sickness or loss-of-earnings benefits): LPP contribution continues, generally with premium waiver via the employer's loss-of-earnings insurance. Free for you.
- In case of disability recognized by AI (degree ≥ 40%): the fund pays you a LPP disability pension, complementary to the AI pension. The calculation depends on your assets and the fund rules.
Important: risk coverage remains active during illness. If you die while on sick leave, your family receives the normal survivor's pension.
The specific case of a transition between two jobs
When you leave one job for another, two scenarios:
Marie has 3 months without employment between the two roles. LPP assets at exit: CHF 145,000.
- LPP assets at exit
- CHF 145,000
- Transition duration
- 3 months
- No unemployment registration
- Personal choice
- Step 1: transfer to vested benefits
- Mandatory within 6 months after exit
- Step 2: transfer to new fund
- At start of new job after communicating the new fund
- Risk coverage during the 3 months
- Often suspended unless temporary private insurance
Long-term consequences
Each period without contribution creates a pension gap. Over 35 years of career, 3-5 cumulative years without contribution typically represent 10-15% less retirement assets. Two ways to close the gap:
- LPP buy-backs — fully tax-deductible. See our dedicated article.
- 3rd pillar 3a — individual complementary savings, capped but cumulative.
The checklist after every interruption
- Check the final statement from your former fund at the end of employment (amount transferred, date, recipient).
- Give transfer instruction to the vested benefits foundation of your choice within 6 months — otherwise the supplementary institution takes over by default.
- Keep the correspondence and account numbers (even old forgotten accounts can resurface).
- On return to employment, ask for the transfer of vested benefits to the new pension fund — not automatic.
- Anticipate buy-backs in the following years to close the gap.
- 01During unemployment with benefits > LPP threshold: contribution maintained via the supplementary institution.
- 02Statutory maternity: LPP coverage continues without break thanks to the maintained employment contract.
- 03Sabbatical with no legal framework: voluntary continuation possible (LPP art. 47), to negotiate with the fund.
- 04Each interruption creates a gap — recoverable via tax-deductible buy-backs.
To understand vested benefits in detail, see our guide. For buy-backs that close gaps, the dedicated article. For the system's actors (foundations, supplementary), the institution panorama.