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Hi
Would you help me answer clarify this doubt I have in my mind – does the money paid into to the pension fund (including the additional pay-in’s to reduce tax) is lost (or nor refunded) if one leaves Switzerland and work in another EU country.
Thanks & kind regards
Ashish
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There are three sections to the company pension fund contributions. These are:
Risk
Obligatory part
non-obligatory part.
The risk is there to cover the eventuality that you die and they need to pay out the death insurance part and potentially to cover permanent disability meaning early pension.
The obligatory part covers the pension contribuions made on the first 79560 of your salary.
The over obligatory part is that made on everything over the 79560 limit.
When you make your voluntary contributions this will be first used to fill holes in your obligatory pension contributions. Once this is complete it will carry over to the parts of the salary over the limit, if any.
When you leave Switzerland and move to another country within the EU, your obligatory contributions are then frozen but can be transferred to a similar fund in an EU state free of tax. Depending on the country in question you may or may not want to do this. The risk part is not paid on voluntary contributions anyway so does not apply. The over obligatory part can be paid out cash as prior to the change in law.
If you choose to freeze your fund then it is frozen until you reach 65 or whatever the official retirement age is when you get there.
Any questions?