Contents
What is the Substitute Occupational Benefit Institution?
It is a foundation set up by the umbrella organisations of employers and employees, as mandated by law (Art. 54 and 60 BVG). It acts as the safety net of the occupational pension system. Its main tasks:
- affiliating employers that have not joined a pension fund although they are required to;
- insuring unemployed people against the risks of death and disability;
- managing vested benefits accounts, in particular for people who have not said where their termination benefit should be paid.
Why your money may be there
When you leave a job without telling your pension fund where to pay your termination benefit, it must pay it to the Substitute Institution, no earlier than six months and no later than two years after you leave (Art. 4 para. 2 FZG).
Most often, the person has moved, did not receive the letter or put it to one side. The money is not lost: it is in an account in their name. But they do not always know it.
The figures
At the end of 2025, the Substitute Institution managed CHF 21 billion in vested benefit assets, spread across 1.6 million accounts (2025 annual report, in French). At the end of 2022, accounts whose holders no longer had a valid address represented CHF 5.6 billion.
These assets earn very little interest: at the end of 2025, the interest rate was 0.1%. With inflation, money left dormant there loses real value.
Why the rate is so low
The Substitute Institution must guarantee the nominal value of vested benefits: you cannot lose money there. It therefore invests them very cautiously.
Since 2020, the law has also allowed it, on a temporary basis, to deposit part of these funds interest-free with the Federal Treasury when interest rates are negative; it did so from May 2022 to March 2023. This option ends in September 2027, and the Federal Council has proposed to Parliament that it be extended for six years, up to CHF 10 billion (FSIO, in French).
How to find out whether you have an account
The Substitute Institution refers you to the Central Office 2nd Pillar: a simple, free request tells you whether an account belongs to you, there or elsewhere (aeis.ch).
To avoid losing contact in future, tell all your pension institutions whenever you change address.
Taking back control of your assets
- You work in Switzerland: your assets must be transferred to your employer’s pension fund (Art. 4 para. 2bis FZG). Give its details to the Substitute Institution.
- You do not have a pension fund: you can transfer them to a vested benefits account or policy of your choice, for example to consolidate them with other assets or to invest them to suit your time horizon.
- You meet a condition for withdrawal (retirement, home ownership, leaving Switzerland for good, self-employment, disability): you can ask for them to be paid out.
To compare the options, read our guide Vested benefits account or policy: which should you choose?
With libre-passage.com, we find all your assets, at the Substitute Institution and elsewhere, then arrange for them to be consolidated in a single account if you wish. The search is free, with no commitment.
Start my free searchFrequently asked questions
Is my money safe with the Substitute Institution?
Yes. It guarantees the nominal value of vested benefits. The downside is a very low return.
Will the Substitute Institution contact me?
It writes to the last known address. If you moved without telling it, the letter does not reach you: this is how accounts lose contact with their holders.
Can I leave my money with the Substitute Institution?
Yes, nothing obliges you to transfer it. But it earns little there, and an account you do not keep an eye on may well be forgotten. Compare it with other vested benefits options.
What is the Central Office 2nd Pillar?
It is a service of the LOB Guarantee Fund that knows where pension assets are held. It does not manage any money, but it tells you free of charge which institutions hold assets for you.
Sources
- Substitute Occupational Benefit Institution – Vested benefits accounts
- Substitute Occupational Benefit Institution – Undeliverable vested benefits accounts
- Substitute Occupational Benefit Institution – 2025 annual report (in French)
- FSIO – Interest-free investment of the Substitute Institution’s vested benefits funds (in French)
- Federal Act on Occupational Pensions (BVG), SR 831.40
This guide provides general information and is not a substitute for personal advice. Rules can change: if in doubt, check with your pension institution.