1e is an article in the second Federal Council ordinance on the BVG (BVV 2). The article is relevant for 2nd pillar pension schemes that exclusively insure salary components above CHF 127,980 up to a maximum of CHF 853,200. For such salaries, a company can conclude its own pension plan with a 1e collective foundation. This is called a 1e plan or 1e management plan.
The insured persons in a 1e plan can decide for themselves how their pension assets are invested. They can choose from up to ten investment strategies. The investment strategies are determined by the pension fund commission. At least one of the strategies must be low-risk. The pension fund members can benefit from a positive price performance, but must also bear any losses.
1e plans have been around for a while. However, they only became really attractive after the amendment to the Vesting Law and BVV 2 came into force on 1 October 2017. The revision of the law eliminated the systemic error of allowing beneficiaries to benefit from profits while the pension fund had to bear any losses. Since then the 1e market has been growing strongly.