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Old 11.06.2015, 00:18
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Re: Pension Slip for Previous Pension Fund (forwarded?)

There is loads of info on this site - just use the search.

State pension (Pillar 1)
This is (in part) what your UK national insurance payments contribute to. There is nothing to transfer. Your entitlement remains in the UK until retirement age. Assuming enough entitlement has been accrued you will claim this at retirement from UK government regardless of where you live at the time. Subject to rule changes between now and then, of course. Whilst you are employed in Switzerland you will similarly contribute to the Swiss system (AHV/IV) and accrue an entitlement, although the terms are very different. This entitlement remains in Switzerland until you retire, at which time you claim it from the Swiss government (alongside what you claim from the UK).

Company pension (Pillar 2)
This is your existing UK company pension(s). As mentioned, you do not have to transfer this to your Swiss employer. There are options to transfer to a QROPS scheme if you wish, but you would need to take advice (not sales pitch!) if considering this. Whilst working in Switzerland it is mandatory to be enrolled in your employers Pillar 2 (BVG) pension unless you work very short hours/very low earnings. Unlike the UK (where you can accrue company pensions with many companies) this is transferred to your next employer when you change jobs. Depending on the level of your contribution and your status/destination when leaving Switzerland, some or all of this can be cashed in if you leave the country. You can also draw on it for property purchase (own residence). Otherwise it will sit in a special locked account until retirement.

Additional pension savings/investments (Pillar 3)
Regulated (usually tax efficient) schemes e.g. UK ISAs. There is a similar scheme in Switzerland called Pillar 3a which is a bit like an ISA (can be cash or fund based). However, again there is no need to transfer anything from the UK. Indeed your Pillar 3a contribution is meant to come from earnings (although in reality all this means is you must earn more than you contribute). Like ISAs, you can build up many 3a accounts over time. They are intended to be drawn down as income to supplement your pension when retired, however they can be cashed in if you leave Switzerland (fewer restrictions that Pillar 2) or purchase property (own residence).
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