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Old 29.09.2015, 20:21
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Complicated pension question

So I am getting divorced but still married, so for tax purposes, married. I am self employed and ex has a reg contract where they will be paying into a pension for him. Now I have zero pension, can I start my own and pay in with pre-tax money? Is there a limit on what can be put in?

Any links are appreciated
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Old 29.09.2015, 20:40
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Re: Complicated pension question

Self-employed persons without an occupational pension plan can pay in up to 20 % of their annual earned income into a Pillar 3, but a maximum of CHF 33'840.

https://www.ch.ch/en/3rd-pillar/

Also, if you are a US citizen, you might wish to review whether this would be worthwhile with a knowledgeable tax advisor.
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Old 29.09.2015, 20:42
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Re: Complicated pension question

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Self-employed persons without an occupational pension plan can pay in up to 20 % of their annual earned income into a Pillar 3, but a maximum of CHF 33'840.

https://www.ch.ch/en/3rd-pillar/

Also, if you are a US citizen, you might wish to review whether this would be worthwhile with a knowledgeable tax advisor.
I'm british

I just am reminded I have zero pension and if he's going to be getting one maybe it's time I have one too
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Old 29.09.2015, 20:47
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Re: Complicated pension question

the 20% may be an issue if it takes a little while to build up business. the 3b though there isn't the same limit?
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Old 29.09.2015, 21:30
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Re: Complicated pension question

All the SAHMs here should realise they are non-persons as far as pension is concerned from what I have read so far. Please correct me if I am wrong.
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Old 29.09.2015, 21:32
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Re: Complicated pension question

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All the SAHMs here should realise they are non-persons as far as pension is concerned from what I have read so far. Please correct me if I am wrong.
I was told the UK would pay mine in while I wasn't working and raising kids, now if this is true who knows. I just know if he is going to start to have one, I should have one too
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Old 29.09.2015, 23:42
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Re: Complicated pension question

The usual thing..'pension'...you mean state, company or private (Pillars 1, 2 and 3) ?

1. State pension, will be based on National Insurance contributions you have / have not made

2. Company, will be based on contributions to your employers pension scheme

3. Private, like ISA in UK, or just called Pillar 3a here.

You say "I was told the UK would pay mine in while I wasn't working and raising kids" - that implies Pillar 1 (state). I don't know how 'NI stamps' (AHV) are accrued these days for married 'non-working' women, but it used to be that you would accrue none/very little in that situation (at least in UK). Maybe there is something fairer in Switzerland, which appears to provide some protection to SAHMs (see below, pillar 2). Maybe your husbands AHV contributions accrue you some benefit in Pillar 1 also. But I doubt very much the UK would be paying NI/AHV contributions on your behalf whilst your husband and you are non-resident and paying into the Swiss system. Unless you've been voluntarily buying class 3 (?) NI during that period.

Regarding Pillar 2, company pension, AFAIK in Switzerland you can only pay this if actually employed. Your 'ex' has been contributing via his employment, but the good news for you (as I understand it) is that those contributions (during the period he is married to you) accrue to you as a couple. On divorce a calculation would be made to split the assets and I assume your portion transferred to a blocked pillar 2 account. Anything your ex had accrued before marriage would be excluded from this.

Regarding Pillar 3, as a self employed person without contributing to Pillar 2, you can contribute as mentioned by Mullhollander each tax year (see the link already provided). I assume this is protected from being split on divorce in the way Pillar 2 is, but I don't know. The main benefit is the tax relief you achieve (contribution is deducted before tax applied to earnings).
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Old 30.09.2015, 00:22
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Re: Complicated pension question

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I'm british

I just am reminded I have zero pension and if he's going to be getting one maybe it's time I have one too
You are probably entitled to half of his......
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Old 30.09.2015, 11:01
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Re: Complicated pension question

High level overview of Swiss pensions in the event of divorce:
1) Pillar 2: company pension assets built during the marriage are generally split 50/50 upon divorce.
2) Pillar 3: same split as Pillar 2 but there can be exceptions.
3) Pillar 1 (AHV state pension): the non-working divorced spouse is entitled to part of the Pillar 1 at retirement and you will need to register the divorce with the authoritie. This is the form to do so in English:

https://www.ahv-iv.ch/en/Leaflets-fo...g-upon-divorce

More information on pensions and divorces is available at this Beobachter article:

http://www.beobachter.ch/familie/tre...ge-aufgeteilt/
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Old 30.09.2015, 13:16
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Re: Complicated pension question

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You are probably entitled to half of his......
he is only just starting, now

So it will be half of nothing
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