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Old 16.12.2014, 17:56
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Changing Jobs, Freizuegigkeitskonto and pension plan

I am soon starting a new job and have a question concerning my pension fund.

When I left my last job, I opened a Freizuegigkeitskonto to transfer the collected pension money. After being a few months unemployed I now found a new position. I informed the HR that I have a vested benefits account but they said they don't need it.

And I am wondering, what will happen to the amount I have in the vested benefits account? I though it would need to be somehow transferred to the pension plan of the new company...
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Old 16.12.2014, 18:18
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Re: Changing Jobs, Freizuegigkeitskonto and pension plan

Strange, as far as I know you should be able to put it back into the new pension fund. That's what we did when the OH found a new job after being laid off.

If they can't/won't take it then I assume it'll just sit in the Vested Benefits account until you reach retirement age.
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Old 16.12.2014, 19:22
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Re: Changing Jobs, Freizuegigkeitskonto and pension plan

I've not heard of people leaving it in there. Just be aware that, should you wish to purchase pension benefits, the amount in your vested benefits account will be deducted from your buying potential. It will of course also affect that amount you can withdraw to purchase a property for example. Sounds like HR don't know what they're talking about... Can you ask them for a contact person for the pension fund itself or do they run it?
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Old 16.12.2014, 23:22
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Re: Changing Jobs, Freizuegigkeitskonto and pension plan

Thanks for the reply Kamarate and Medea, I assume the HR is not running it. I wanted to get an idea of what is the normal/usual scenario as I don't have any experience with this. I will talk with them again and be more persistent this time. Doesn't sound like a good idea to keep it in the account.
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Old 17.12.2014, 09:40
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Re: Changing Jobs, Freizuegigkeitskonto and pension plan

If they refuse to take it, simply ask for the contact person for the pension fund.
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Old 17.12.2014, 10:51
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Re: Changing Jobs, Freizuegigkeitskonto and pension plan

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If they refuse to take it, simply ask for the contact person for the pension fund.
Does it actually matter? I have both a Freizegigkeitskonto & an employee's pension. I have also de registered from Switzerland just not got round to informing them.
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Old 17.12.2014, 11:36
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Re: Changing Jobs, Freizuegigkeitskonto and pension plan

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I am soon starting a new job and have a question concerning my pension fund.

When I left my last job, I opened a Freizuegigkeitskonto to transfer the collected pension money. After being a few months unemployed I now found a new position. I informed the HR that I have a vested benefits account but they said they don't need it.

And I am wondering, what will happen to the amount I have in the vested benefits account? I though it would need to be somehow transferred to the pension plan of the new company...
Technically, you are actually required to transfer your Freizügigkeitskonto balance to your new pension fund. However, this isn't closely monitored and some people prefer to keep the two "pots" separate to spread risk and to enable separate withdrawals when it comes time to draw your pension. If you take this route, just make sure you invest the Freizügigkeitskonto money wisely -- don't simply accept the bank's standard offer of 0.75% fixed interest, or whatever they're paying now.

If the amount in your Freizügigkeitskonto is not particularly significant, it's probably not really worth your while to keep it going and you'd be better off transferring it to your new pension plan.
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Old 17.12.2014, 12:13
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Re: Changing Jobs, Freizuegigkeitskonto and pension plan

You are required to transfer it to the new company's pension fund. Perhaps if you use the term "Freizügigkeitskonto", the person in HR may understand as it sounds to me as if they may have confused it with something else.
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Old 17.12.2014, 12:22
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Re: Changing Jobs, Freizuegigkeitskonto and pension plan

Not only are you obliged, the transfer is also in your own interest:
For instance amount of disability insurance paid depends on the amount in your employers' 2nd pillar account. Money in your Freizügigkeitskonto doesn't count towards that.
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Old 17.12.2014, 12:59
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Re: Changing Jobs, Freizuegigkeitskonto and pension plan

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Not only are you obliged, the transfer is also in your own interest:
For instance amount of disability insurance paid depends on the amount in your employers' 2nd pillar account. Money in your Freizügigkeitskonto doesn't count towards that.
Only obliged if it's a permanent job.
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Old 13.10.2015, 18:41
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Re: Changing Jobs, Freizuegigkeitskonto and pension plan

Hi,

This seems a fairly recent thread with the right title: what do I have to compare/pay attention to, especially regarding "small print" and Terms & Conditions? I am now having to choose a Freizuegigkeitskonto and do read all conditions, etc, but it would be helpful to know what I need to compare (beyond opening cost and interest rates), so eg maintenance fees? penalties for removing the funds? monthly maintenance? risk approach? etc.

Also, are these accounts protected against the bank failing/some of them/a percentage of the fund?

Thank you. Hoping to benefit from the knowledge of people who have been through this process!
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Old 13.10.2015, 18:45
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Re: Changing Jobs, Freizuegigkeitskonto and pension plan

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Hi,

This seems a fairly recent thread with the right title: what do I have to compare/pay attention to, especially regarding "small print" and Terms & Conditions? I am now having to choose a Freizuegigkeitskonto and do read all conditions, etc, but it would be helpful to know what I need to compare (beyond opening cost and interest rates), so eg maintenance fees? penalties for removing the funds? monthly maintenance? risk approach? etc.

Also, are these accounts protected against the bank failing/some of them/a percentage of the fund?

Thank you. Hoping to benefit from the knowledge of people who have been through this process!
They are generally quite similar.

I don't think they are protected however it's only 'cash' that is at risk as 'cash' belongs to the bank, investments are not owned by the bank so the bank failing has no consequence.
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Old 13.10.2015, 19:04
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Re: Changing Jobs, Freizuegigkeitskonto and pension plan

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They are generally quite similar.

I don't think they are protected however it's only 'cash' that is at risk as 'cash' belongs to the bank, investments are not owned by the bank so the bank failing has no consequence.
A vested benefit account is normally through a trust and not by the bank itself.
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Old 13.10.2015, 19:08
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Re: Changing Jobs, Freizuegigkeitskonto and pension plan

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A vested benefit account is normally through a trust and not by the bank itself.
Any money held as cash in a bank account, belongs to the bank, the account holder is at risk of default.
Nothing changes with a trust, assets are protected as they are held in trust, however a third party can default which is why cash in an account is always at risk.
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Old 13.10.2015, 19:15
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Re: Changing Jobs, Freizuegigkeitskonto and pension plan

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Hi,

This seems a fairly recent thread with the right title: what do I have to compare/pay attention to, especially regarding "small print" and Terms & Conditions? I am now having to choose a Freizuegigkeitskonto and do read all conditions, etc, but it would be helpful to know what I need to compare (beyond opening cost and interest rates), so eg maintenance fees? penalties for removing the funds? monthly maintenance? risk approach? etc.

Also, are these accounts protected against the bank failing/some of them/a percentage of the fund?

Thank you. Hoping to benefit from the knowledge of people who have been through this process!
There shouldn't be any maintenance fees for these accounts, they are generally free to run, and rightly so - since you are almost obliged to open one if there are gaps between jobs.

The pension fund of the company you are leaving will deposit payment into the account which you open in your own name. Whilst the money is in there, it should accrue interest. Presumably all of the money plus interest will remain there, in that account, which will stay open until you meet one of the conditions to be able to withdraw some or all funds in it, or until you start a new job and get the money paid into your new pension plan with your new company.
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Old 13.10.2015, 19:24
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Re: Changing Jobs, Freizuegigkeitskonto and pension plan

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Any money held as cash in a bank account, belongs to the bank, the account holder is at risk of default.
Nothing changes with a trust, assets are protected as they are held in trust, however a third party can default which is why cash in an account is always at risk.
True.

Nitpicking: If the trust puts the money in a bank safe, you would not be affected by the mothers bank bankruptcy.

But, as the money incurs interest, there must be one or more third party involved. So there is a risk the money or some of it may vanish. For ever. No gain w/o a possible pain.
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