2nd and 3rd pillar: what changes with the Federal Council's new ordinances

More freedom in choosing the beneficiaries of pillar 3a and additional protection for 2nd pillar pensions with the arrival of the 13th AHV/AVS pension. Here are the changes approved on 12 June 2026 and what they mean for your pension provision.
On 12 June 2026, the Federal Council approved a series of amendments to the ordinances governing the 2nd and 3rd pillars. The changes affect two distinct areas: greater flexibility in designating pillar 3a beneficiaries, in force from 1 June 2027, and the adjustment of the 2nd pillar to the introduction of the 13th Old-Age and Survivors’ Insurance (AHV/AVS) pension, in force from 1 August 2026. Below we explain what is changing and the practical consequences for anyone planning their pension provision.

Pillar 3a: more freedom in choosing beneficiaries

Today, the order of beneficiaries for pillar 3a is largely rigid. In the event of death, the surviving spouse or registered partner has priority, while children and other entitled persons come second. For people living in a blended family, this rigidity is often a real problem: a married account holder currently cannot make their children (including children from a previous relationship) beneficiaries of their restricted 3rd pillar (3a)
With the amendment of the BVV 3/OPP 3 — the ordinance on tax deductibility of contributions to recognised forms of pension provision — this logic becomes more flexible. From 1 June 2027, the account holder will be able to move one or more second-rank beneficiaries up to the first rank (for example their own children, including those from a first marriage) and freely decide how to divide the capital among the designated persons.

Here is a comparison of the main changes between the current system and the new rules:

Order of beneficiaries

Current rules: Spouse or registered partner in 1st rank; children and others in 2nd rank.
From 1 June 2027: The account holder can move 2nd-rank beneficiaries (children, cohabiting partner, etc.) up to the 1st rank

Children from a first marriage

Current rules: Cannot be designated as priority beneficiaries if the policyholder is married.
From 1 June 2027: Can be designated as priority beneficiaries together with the spouse.

Allocation of capital

Current rules: Limited scope for customisation.
From 1 June 2027: Shares can be customised among the designated beneficiaries.

Minimum share

Current rules: No minimum share.
From 1 June 2027: No 1st- or 2nd-rank beneficiary may receive less than 10%.

The new 10% minimum threshold

Greater freedom does not mean being able to effectively exclude a beneficiary. The amendment introduces a minimum share of 10% of the pension capital for each first- or second-rank beneficiary: it will therefore not be possible to allocate token shares (such as 0.1% or 1%) that would amount to exclusion. The same protection is also introduced in the Vested Benefits Ordinance (FZV/OLP), to ensure consistency with the 2nd pillar.
This protection is far from theoretical. According to data cited by the Confederation, in 2023 the median amount of 3rd pillar capital withdrawn at retirement was CHF 49 381 for men and CHF 41 772 for women (source: Federal Statistical Office), and the amounts paid out in the event of death before reference age were even lower. Moreover, for many self-employed people the 3rd pillar is their only form of pension provision: one more reason to guarantee a minimum share to those who were financially dependent on the account holder.

Who benefits most

Blended families are the first to be affected: the reform makes it possible to take into account a family situation in which a new spouse and children from previous relationships live side by side. Self-employed people also benefit, as pillar 3a is often their main pension instrument and they thus gain real room for manoeuvre in estate planning.

2nd pillar: the 13th AHV/AVS pension will not reduce pensions

The second set of amendments concerns the 2nd pillar and accompanies the introduction of the 13th AHV/AVS old-age pension, which will be paid for the first time in December 2026.

The BVV 2/OPP 2 ordinance provides that the sum of the pension fund pension and the AHV/AVS pension may not exceed 85% of the last salary subject to AHV/AVS. Also counting the 13th monthly payment could have pushed some insured persons above this threshold, resulting in a reduction in benefits: an effect contrary to the very purpose of the 13th AHV/AVS pension. To prevent this, the Federal Council decided to explicitly exclude the 13th monthly payment from this calculation. The amendment comes into force on 1 August 2026, before the first payment.
A further, more technical amendment to the BVV 2/OPP 2 will allow pension institutions to hedge their currency risks by using repurchase agreements (repos) on a temporary and limited basis. The aim is to enable pension funds to obtain liquidity quickly when needed.

What this means for you in practice

For most insured persons, no immediate action is required: if you do nothing, the order of beneficiaries remains unchanged. The changes become relevant when you wish to review your planning, and that is when it is worth stopping to think.
If you live in a blended family or wish to allocate your 3a capital differently, from 1 June 2027 you will be able to do so by notifying your pension institution of the new arrangements in writing.

Note one practical aspect: what matters is when you specify the beneficiaries’ entitlements. An allocation amended after the new rules come into force will have to comply with them, including the 10% minimum threshold. Arrangements already made under current law, on the other hand, remain valid until they are amended.

Finally, for those receiving or soon to receive a pension, excluding the 13th AHV/AVS pension from the 85% calculation is an additional safeguard: 2nd pillar benefits will not be reduced because of the extra monthly payment.
As an independent broker specialising in pension advice, we support private individuals, self-employed people and companies in reviewing beneficiary clauses and in estate planning. Checking today how your designations are set up — and understanding which options will become available — is the best way to be prepared for the 2026 and 2027 deadlines.

Frequently asked questions

From when can I designate my children as priority beneficiaries of the 3rd pillar? From 1 June 2027, the date on which the amendment to the BVV 3/OPP 3 comes into force. From then on, you will be able to move one or more second-rank beneficiaries up to the first rank, including children from a previous relationship, even if you are married or in a registered partnership.

Can I leave a beneficiary just a token share? No. The new rules set a minimum share of 10% of the pension capital for each first- or second-rank beneficiary. Lower shares, which would amount to exclusion, are not permitted.

Do I need to do anything right away? No action is needed to keep the current order of beneficiaries. If, however, you wish to change it, you will be able to do so once the new provisions come into force, by notifying the pension institution of your choices in writing.

Remember that occupational pension institutions under the BVG/LPP (second pillar) also allow a certain freedom in defining the beneficiary clause for any capital payable on death. It is therefore essential to check that the arrangements applied match your needs.
Will the 13th AHV/AVS pension reduce my pension fund pension? No. The Federal Council has decided to exclude the 13th AHV/AVS monthly payment from the calculation of the 85% limit of the last salary, so as to avoid reductions in 2nd pillar benefits. The measure has been in force since 1 August 2026.

Do these rules also apply to pillar 3b? No. The changes concern pillar 3a (restricted pension provision) and the 2nd pillar. Unrestricted pension provision (3b) follows different rules, in particular those of ordinary inheritance law.

Want to understand what changes in your situation?

Our advisors are available to review your pension and estate planning, from choosing your 3rd pillar to designating beneficiaries. Contact us for a no-obligation consultation.

Source: Federal Council press release of 12 June 2026 (Federal Social Insurance Office). Last updated: June 2026. This article is for information purposes only and is no substitute for personalised pension advice.