In a 1e plan, the employee no longer benefits from a capital guarantee: if the markets fall by 10%, the employee bears the full loss. In return, insurance premiums are generally lower. All 1e plans fall under the LPP’s non-mandatory portion, but the reverse is not true.
What are the disadvantages of a 1e plan compared to the standard supplementary pension plan?
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About the Author: Attorney Cedric PANCHAUD
Cédric Panchaud is an attorney, holds a doctorate in law, is a licensed notary, and is a certified tax expert. He heads PANCHAUD Tax & Legal SA, an independent firm in Geneva specializing in taxation of individuals and corporations, real estate taxation, occupational pension plans, and corporate restructuring. He regularly serves as a speaker at continuing education seminars (ISIS, OREF/EXPERTsuisse).