Hi,
I will be leaving the country soon and so I am thinking what will happen to the money that I have accumulated in the pension fund. Will I be able to withdraw it or do I have to leave it here till I actually reach the pansion age? I am a EU member state citizen.

Many thanks in advance for your advice.
cheerup

When you are retirement age, if you are an EU citizen.

No, if you officially leave the country with no intention of coming back you can cash out your pension and take it with you (you will pay tax on it as income for that year, however).

no you can't if your from an eu country, the law changed a couple of years ago. you can only transfer it to another pension fund.

Non eu'ers can cash it in.

Is it the same if you leave to a non-EU country?

It depends on what you are talking about and it's quite complex.

The state pension is not transferable between EU states i.e. if during your working life you work in more than one EU state and pay contributions into each states social security scheme then you get a proportionate pension from each state. The funds are not transferred between the countries.

The compulsory occupational pension cannot be paid in cash if the person is subject to the compulsory system in the new country but can be transferred to another scheme or placed into a blocked account in Switzerland (until retirement).

The occupational pension that exceeds the compulsory part can be paid out in cash if the person leave Switzerland as can the lump sum benefits (often based on pension contributions from bonuses or awards).

Simple it isn't, but luckily the Swiss Govt have produced an absolutely super document on it all and it's available in English. Isn't that nice of them?

I think if you can prove residency in a non eu then you can cash it in, there was a thread all about it quite recently

It depends on whether the Swiss have a bilateral agreement with that country - I believe Australia and New Zealand do, for example, but the uSA doesn't. Take that as hearsay though and check with the new country's social scheme (obviously not in the USA where it's practically non-existent ).

It's not as simple as you can/you can't, EU/non-EU.

Your pension *may* (depending on your contributions) have two elements within the 2 pillar.

Firstly the mandatory per-BVG regulation element. This cannot be withdrawn as cash if you are going to an EU (shorthand for places Swiss have a bilateral agreement with as previously mentioned). I believe it cannot even be transferred to another pension outside of Switzerland, certainly that is true of pillar 1 (AHV/IV etc) - i'm not sure if that also applies to the mandatory BVG element of pillar 2 - maybe that can be transferred to an approved pension scheme - sorry don't have time to check right now.

Secondly, your 2 pillar may be funded in excess of the mandatory BVG requirement (your pension company will be able to tell you). Typically if you have purchased 'additional years' voluntarily. This part may be taken out as cash even if you leave for an EU country, but is subject to taxation at withdrawal (details should be found on your cantonal tax website).

Thanks a lot for all your responses!

Cheerup

It might be worthwhile to check with the insurence company that was dealing with your contributions on behalf of your company¦

My company told me to go to the bank and open a second pillar account. The money will then be transferred there. After 5 years or so of not living/working in Switzerland I will be able to apply to get the money out.

Any chance you could link to the thread? -I have looked already but there are about 100 threads on this subject. I'm looking for info on a UK citizen moving to New Zealand being able to cash the Swiss pension.

You might find the info here:

http://xa.yimg.com/kq/groups/7323998...e%5B1%5D%2Epdf

My company pensions manager has informed me I can take part of my pension when I move back to the UK this year. The amount is two thirds of the overall pot so it can be done.

Very useful, esp- the links, thank you. I have a related question regarding the super-mandatory contributions to 2d pillar (i.e. additional purchases within the limits, for instance 20pc of insured salary in the first 5 years after entering CH).

Can they also be kept (not cashed) in CH with the mandatory contribution part in the same conditions for a departure to a EU country ? i.e., not taxed. And for how long ? until retirement, even if that takes place decades after the departure ?

For instance in the US, funds on an IRA can be kept until retirement, at which stage they can be taken out, but obviously at reduced tax rate in all likelihood as the income will have fallen (provided the overall tax rate has not gone up in the meantime, of course).

thank you for any guidance and best regards.

how do i apply for the refund

through my company or through the pension company?

I am pursuing this through my company and it seems to be working so far, but as yet no response on timing of fund release after my contract here terminates (I hope it does not take as long as it does to return tax).

My wife and I will be leaving soon to go to a non-EU country and we are looking to take out our pensions as well. So far, here is what we have found out:

1. Normally this is handled directly by your company or through the company's fund administrator.
2. If you elect to take it out, it is done by direct wire transfer to the recipient bank (no checks issued or intermediaries allowed).
3. The recipient bank cannot be located in Switzerland (which is really quite obvious given you are leaving the country). However, you can wire transfer the funds back into Switzerland at a later date (Some people value the "safety" or discretion of Swiss banks, so they might wish to do this).
4. There are some restrictions to transfers made to certain countries. It is a good idea to check with your company on if your chosen destination is okay.

Hope this helps!

Cheers,

hey cheerup,

regulations regarding your pension fund are changing constantly. It is depending on you what you want to do with it.

1. You can keep it in the fund and let it grow, it will be paid when you retire in the full
amount or as a pension every month.

2. If you intend to run your own business, you can take all of it out.

I recommend: get in touch with Swisscanto themselves and get advice. A lot of people take it out and waste it for nothing (happens to swiss citizens as well).

Hope that helps you a bit!