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  #241  
Old 13.06.2016, 15:35
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Re: Swiss pensions consolidated summary

Hi, I'm starting a new job at a big bank HQ-ed in Zurich with salary around the 85K mark annually. I'm 30.

I'm interested in obtaining an advantageous above-legal-minimum pension BVG scheme and wonder if my thinking in the example I provide below is legit and worth negotiating with my employer.

After reading extensively the present thread and this related thread, along with the provisions published on the bsv.admin.ch/ website, this is what I consider as an advantageous above-legal-minimum pension BVG scheme in my case:

> insured salary at 60% or around the 51K mark
> total annual payable contribution of 13% or around the 6.6K mark (legal minimum for my age group is 7%)
> percentage of the annual payable contribution paid by the employer at least 75% (legal minimum is 50%) or around CHF 414 per month
> rest paid by me - or around 140 CHF per month.

What do you think? According to your experience, is the above worth fighting for, or there are major inconsistencies with regards to my age and my annual gross salary at this major bank? Could I even bring it up a level?

Thanks for all your input. I'm yet to meet with the HR dept to negotiate and sign the contract.

Last edited by hifly; 13.06.2016 at 16:35. Reason: improved precision
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  #242  
Old 13.06.2016, 20:10
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Re: Swiss pensions consolidated summary

No disrespect, but "a big bank", "salary around the 85K mark" IMHO doesn't give you much chance at "negotiating with my employer."
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  #243  
Old 13.06.2016, 22:30
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Re: Swiss pensions consolidated summary

On the contrary. I thought that exactly because it's a big company and the salary is low (position is for a marketing specialist at an associate level with at least 5 years of previous experience), that I'd have the right leverage to negotiate attractive perks outside the base remuneration.

I'd like to specify that it is not the company who proposed the salary for the position but it was me, understanding that it was a low base sum.

I'd like to get into the overall viability of the specifics - the 13% annual contribution at 60% of the gross salary and 75% taken up by the employer considering my age and position level.

Last edited by hifly; 13.06.2016 at 22:41. Reason: improved precision
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  #244  
Old 13.06.2016, 22:37
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Re: Swiss pensions consolidated summary

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On the contrary. I thought that exactly because it's a big company and the salary is low (position is for a marketing specialist at an associate level), that I'd have the right leverage to negotiate attractive perks outside the base remuneration.

I'd like to specify that it is not the company who proposed the salary for the position but it was me, understanding that it was a low base sum.

I'd like to get into the viability of the specifics - the 13% annual contribution at 60% of the gross salary and 75% taken by the employer considering my age and position.
Your asking for about 2k more than required by law. I don't think your very important to them, they might pay they might take another candidate.
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  #245  
Old 13.06.2016, 22:38
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Re: Swiss pensions consolidated summary

This isn't Portugal.
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  #246  
Old 13.06.2016, 23:07
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Re: Swiss pensions consolidated summary

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This isn't Portugal.
Could you clarify? It's surely Switzerland. In fact, I don't have experience working outside of Switzerland.
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  #247  
Old 14.06.2016, 02:21
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Re: Swiss pensions consolidated summary

Negotiations don't usually happen for low level employees in CH (or anywhere else afaik) unless you're joining a startup, you're just not that important. You can state your salary and they can take it or leave it.

Also, a company has the same pension settings for everyone and setup their IT/Payroll based on that. They most probably can't customize it for 1 person.

Focus on getting a good salary instead.
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  #248  
Old 14.06.2016, 07:11
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Re: Swiss pensions consolidated summary

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I'm interested in obtaining an advantageous above-legal-minimum pension BVG scheme and wonder if my thinking in the example I provide below is legit and worth negotiating with my employer.


> insured salary at 60% or around the 51K mark
> total annual payable contribution of 13% or around the 6.6K mark (legal minimum for my age group is 7%)
> percentage of the annual payable contribution paid by the employer at least 75% (legal minimum is 50%) or around CHF 414 per month
> rest paid by me - or around 140 CHF per month.
For that level I do not think you can negotiate much. It is not a level where companies want to negotiate. Take it or?

And if you want to top up your pillar II pension, you can do so yourself.
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  #249  
Old 14.06.2016, 10:35
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Re: Swiss pensions consolidated summary

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Focus on getting a good salary instead.
This.

Bear in mind that any perk can be taken away. It's happened at several companies in response to the economic downturn. Perks such as expense stipends, health insurance contribution, car leases, etc. have disappeared, effectively resulting in a reduction in total comp.

It's harder for your salary to be reduced (although it can be done), so negotiate your comp in cold hard cash.
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  #250  
Old 14.06.2016, 11:22
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Re: Can I get my Swiss pension paid to UK

Hi


I am a UK citizen and currently live in the UK. I lived and worked in Switzerland for 4 years and I paid into a pension while I was there and I left Switzerland 5 years ago. The money is now in 'Freizuzigskonto' in UBS and I want to know how I can get this money sent over to England. Any help or advice or would be greatly appreciated! Thanks!
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  #251  
Old 14.06.2016, 11:30
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Re: Can I get my Swiss pension paid to UK

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Hi


I am a UK citizen and currently live in the UK. I lived and worked in Switzerland for 4 years and I paid into a pension while I was there and I left Switzerland 5 years ago. The money is now in 'Freizuzigskonto' in UBS and I want to know how I can get this money sent over to England. Any help or advice or would be greatly appreciated! Thanks!
Very likely, look at a thread I started last year.
Leaving to live in the EU & cashing in a Swiss Pension
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  #252  
Old 14.06.2016, 11:36
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Re: Swiss pensions consolidated summary

Oh great. I was told that I couldn't get the money initially as I am living in an EU country, that is why I have left it. Do you know how I would go about starting this procedure and what I have to do? Thanks so much for your help!
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  #253  
Old 14.06.2016, 11:40
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Re: Swiss pensions consolidated summary

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Oh great. I was told that I couldn't get the money initially as I am living in an EU country, that is why I have left it. Do you know how I would go about starting this procedure and what I have to do? Thanks so much for your help!
It's all in my thread, everyone gets told you can't take it if leaving for the EU, total nonsense in most cases.
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  #254  
Old 28.06.2016, 00:39
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Re: Swiss pensions consolidated summary

Hi all,

UK expat, left Switzerland in 2012 for France then the UK. Thought I wouldn't be returning so pension went into a Feeizügigkeitskonto, but I managed to take half of the money with me (because I was moving to France, I presume?) and I vaguely remember the words "so long as you don't come back" or words to that effect. My situation has now changed and I'm about to sign a new contract with my previous employer but worried CH won't let me return now! Anyone ever been in this situation or can advise? I'll pay the money back into my 2. Pillar if I have to
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  #255  
Old 28.06.2016, 00:48
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Re: Swiss pensions consolidated summary

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Hi all,

UK expat, left Switzerland in 2012 for France then the UK. Thought I wouldn't be returning so pension went into a Feeizügigkeitskonto, but I managed to take half of the money with me so long as I never returned (because I was moving to France, I presume?). Situation has now changed, about to sign a new contract with my previous employer but worried CH won't let me return now? Anyone been in this situation and can advise? I'll pay the money back into my 2. Pillar if I have to
Without knowing the exact answer. It might affect your ability to get tax deductions until you have paid back in what you took out, but very unlikely to block your re-employment in CH.

Taking permanent residence elsewhere with the honest intention to remain there at the time, is totally different from now changing your mind and coming back.

At that time you would only have been allowed, assuming it was done properly, to withdraw contributions above the legal minimum on leaving to another "treaty country" such as France anyway.

Since you are going back to the same company they should be able to easily advise what they let you do then. No worries.
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  #256  
Old 01.09.2016, 21:14
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Re: Swiss pensions consolidated summary

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Just my 2 cents on this. I left Switzerland last year and had a fair bit of money in a retirement fund. I have just recently managed to get all this paid out into my UK mortgage account as I bought a new house. The steps I took were this: I contacted my pension provider (ASAG I think), well when I say contact, I sent them a form which my employer obtained for me. This form was to transfer the pension pot into a freizuegigkeitskonto with my bank. I obtained a form from my bank (BKB) which I filled in and sent to the pension provider, this form had details on what the pension provider should do with the money (what account to transfer to etc.). The money was then transferred into this account before I left. I contacted BKB when I got home and told them I was buying a new house and asked about transferring it. They then sent me forms to my UK address (in English - which was nice of them!). There were a few rules to this, either the money had to be paid out to the seller or to into the mortgage account. At this point I had not bought the house. I didn't go down the route of transferring it to the seller but opted to have it transferred to my mortgage account.

Once the house was in my name, I had to send the land registry deeds(with completed signatures),a letter from my bank stating the details of my mortgage account (along with the IBAN, BIC CODE and reference/account number)and the forms that BKB sent me. This form was quite simple tick a few boxes and sign. It was done within a matter of days once they had received the forms. They took a 200 fee out and some money for tax (around 500 CHF I think) and the money went straight into the mortgage account.

If anyone needs any more clarification then let me know and I will do my best to help.

BKB were brilliant I have to say, very helpful and made the process easy.

Cheers.
Hello,

First of all, this thread turned out to be a goldmine, great work.

Does anyone know whether this what Magrangs wrote is still possible?

I am leaving CH in the near future back to my home country, Finland (EU).
My plan is to cash out the 1st and 3rd pilar, and leave the 2nd to the vested benefits account (Credit Suisse) and use it later (within 6-12 months) for purchasing property in Finland.

Thanks in beforehand for the answers.
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  #257  
Old 14.09.2016, 11:54
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Re: Swiss pensions consolidated summary

Given a choice, which is the best approach/focus to maximize tax contributions?

1) Obligatory and Non-Obligatory and Additional Contributions for 2nd Pillar
2) 3rd Pillar contribution?
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  #258  
Old 14.09.2016, 12:21
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Re: Swiss pensions consolidated summary

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Given a choice, which is the best approach/focus to maximize tax contributions?

1) Obligatory and Non-Obligatory and Additional Contributions for 2nd Pillar
2) 3rd Pillar contribution?
2nd pillar as you can pay in more in any one year. I mane a 35k payment however return over 10 years was very poor. I would have done better myself


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  #259  
Old 14.09.2016, 13:02
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Re: Swiss pensions consolidated summary

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Given a choice, which is the best approach/focus to maximize tax contributions?

1) Obligatory and Non-Obligatory and Additional Contributions for 2nd Pillar
2) 3rd Pillar contribution?
The 3rd pillar is annual, whereas the second pillar AC's are finite. So if you have income that can be very variable from year to year (eg share participation taxed as income), I would "save" those for good years, and do the third pillar annually.

As fatmanfilms says the investments will be very conservative and may vary in quality; cannot be ignored, but you do need to compare net of tax returns, not just gross.
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Old 14.09.2016, 17:07
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Re: Swiss pensions consolidated summary

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The 3rd pillar is annual, whereas the second pillar AC's are finite. So if you have income that can be very variable from year to year (eg share participation taxed as income), I would "save" those for good years, and do the third pillar annually.

As fatmanfilms says the investments will be very conservative and may vary in quality; cannot be ignored, but you do need to compare net of tax returns, not just gross.
I am aware that some Swiss companies provide interest-free loans to help you to back-fill your 2nd pillar and is it true that the companies will also co-pay their contribution for 2nd pillar up to a certain cap.

In that case, it might be worth taking up the 2nd pillar loan, which is consider as debt to lower tax contribution and at the same time top-up 3rd pillar annually.
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