For many insured persons this is a worrying thought, after all it concerns the retirement capital saved up over decades. But the Swiss system has built in a safety net for precisely this case.
If a pension institution runs into financial difficulty and can no longer meet its obligations, the BVG Guarantee Fund steps in. This nationwide institution ensures that the statutory benefits are guaranteed up to a certain amount even when one's own pension fund becomes insolvent. The Guarantee Fund is financed through contributions from all affiliated pension institutions, a principle of solidarity in which everyone provides jointly for the worst case. Not the federal government's pension fund, not that of the railways and not that of the postal service take on this task, but the BVG Guarantee Fund.
This safety net is an important reason for the great trust in the second pillar. It shows that the system is designed not only for good times but also provides for the unlikely but possible case of insolvency. For the insured, this means a considerable degree of security.