Hi all....

I know that the Pensionskasse rules are set to change next year regarding EU citizens moving out to an EU country and taking their personal pension contributions pot with them.

Currently I understand that it's possible to take out your personal contributions as cash, minus a certain percentage of course.

From various sources I hear that it's no longer going to be possible to do that from next Jun/Jul if you are going to live in the EU - The cash has to be transferred into another 'official' pension plan.


Does anyone have any concrete sources of info for what the rules are going to be? I've stashed quite a bit extra in my plan for reasons of tax effeciency, back in the good old days when I was contracting I definitely don't want all that cash tied up in a pension plan so I would be leaving before the deadline, no matter what.

But what if I was ever to come back to work here - I've heard that I'd need to pay it all back. Is that so, or do I just need to leave for a certain period of time eg. a year?

It'd be nice if the option was open to contract here again sometime in the future.

Also, I take it that the employer contributions can also be transferred out, into a regular pension plan?


Gav

Gav you made an interesting point when you wrote:

"I know that the Pensionskasse rules are set to change next year regarding EU citizens moving out to an EU country and taking their personal pension contributions pot with them".

We are also keeping our eye on the June deadline as we don`t want our money tied up here but we thought it was because we`re from a EU country rather than moving back to a EU country . However, your comment makes more sense.

Do you think there`ll be a big rush out of Switzerland at the March 2007 moving date?

Hi - Yes, I think this may be an issue for more people than just me.

I know that regardless of whether or not I have a job in CH at that point, I will want to get out my 'tax efficient' stash in the pension fund. There are many other EU contractors/ex-contractors and high earners who will have followed accountants advice and used the pension to minimise tax liability who will probably feel the same way.

I wouldn't be at all surprised if there's a mini Auslaender-exodus around Spring/Summer next year. Blocher and his Brownshirts shouldn't be getting too excited though as most of those who would be likely to leave are skilled, educated and dare I say it 'white Western-Europeans' who fill top-end jobs and pay lots of tax.

As far as I understand what I've heard, you can still dodge having your cash tied up here by relocating to a non-EU country which could be an option for many in banking/finance.

Does anyone have any links to hard facts though? All I've got so far is hearsay, It'd be good to see something official. I'm particularly interested to know if I would have to pay it all back if I was to ever become resident in CH again in my life.



Gav

Gav, I agree about the exodus - many expats, years and years ago when the changes were announced began planning their leaving dos

I wonder if it will make any sort of a dent on the overall PK funds? Lots of highly-paid foreign workers put many times the normal amount of cash in there and it's all going to come out around the same time.

Wouldn't it be funny if this time next year the Swiss media was full of scare stories about shortfalls in pension funds and a chronic lack of skilled IT and Banking/Financial sector staff.......

Gav

Hey, I hope so - my rates will go up

My pimp, sorry, agency only takes bare minimum BVG anyway, perhaps it aint a bad thing after all

You are right about the rules, Gav, but I do not know about moving back. One thing though, if you plan to move to Oz, be careful as Australia is negotiating with the Swiss atm about this, and it may result in the same rule as for EU states.

I would check this with an accountant who is up to date on this stuff.

Hi, this is my first post so hello everyone.

I just found this forum after reading the following article:

http://www.mercerhr.com/referencecon...ontent=1189195

Hope this is of some use

Hi I_Am_Ash,

Thanks for the link, it helped clarify the issue for me at least

If you are good are reading German Gav, here is the site with the facts

http://www.pkzh.ch/internet/pkzh/pk/..._austritt.html

I just happened upon the following document which gives some info in English.

dave

Which I think confirms what has been said before. All contributions paid into a BVG to the maximum AHV salary 79850 will stay here if you go to Europe. As I recall it is for a period of 5 years although the document does not state this. All 3rd Pillar and all contributions for salary over the 79850 are cashed in.

I like the fact that Lob is involved. Amazing where that guy gets to...

you're not the first one. That's one of my less abusive PDFs