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Old 24.10.2021, 22:07
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Pillar 2A when leaving CH residency & retain Swiss employment contract

I was wondering whenever someone has experience there and could offer some advice.

case is for LRP to move back to US while staying on Swiss contact (remote) and how does it affect pillar 2A
- continue to be pair as it's part of the Swiss-work-contract ?
- not more continued as ones physical presence is outside of CH (as it's for cross-border commutes)
- vested / locked
- cashed out?


and next questions is how would that work upon parmanent relocation back to CH in future sitn 2A ( tax free pay-in to the system with tax-free cash-out since tax is already paid at initial cash-out in case it's the option ?) - Answer : If a withdrawal is repaid, the taxes paid will be refunded without interest.

I couldn't find much around that particular subject so asking here ...

Last edited by hoover1; 24.10.2021 at 22:29. Reason: found one answer :
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Old 24.10.2021, 22:09
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Re: Pillar 2A when leaving CH residency & retain Swiss employment contract

Pillar II or pillar 3 a? There is no pillar 2a
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Old 24.10.2021, 22:38
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Re: Pillar 2A when leaving CH residency & retain Swiss employment contract

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Pillar II or pillar 3 a? There is no pillar 2a

it's about Pillar 2A .

Yes, there is 2b ... but for this case it would be no different than 3A.

This is only applicable for the mandatory portion of your company pension fund. As you may know, there is a distinction between Pillar 2a (mandatory) and Pillar 2b (not mandatory) company pensions. Many individuals with higher income will contribute to a Pillar 2b plan ("senior management plan", or similar). These funds, like Pillar 3a money, can be withdrawn, even when relocating to a EU/EFTA country.
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Old 25.10.2021, 04:59
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Re: Pillar 2A when leaving CH residency & retain Swiss employment contract

That is a Kader pillar. Never heard that described as pillar 2b.
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Old 25.10.2021, 11:10
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Re: Pillar 2A when leaving CH residency & retain Swiss employment contract

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That is a Kader pillar.
Not really. Any commoner with a salary above ca. 84-86k (which is not really much today, not Kader level) will be contributing into it. 1e plans with a freedom to choose how your money's invested, now that's where executive packages start

Quote:
case is for LRP
who?

Quote:
to move back to US while staying on Swiss contact (remote) and how does it affect pillar 2A
- continue to be pair as it's part of the Swiss-work-contract ?
I don't see how that's gonna be possible

Quote:
- vested / locked
Sure, if you're fine with near zero interest rates.

Quote:
- cashed out?
Consider US taxes, especially if you're not US citizen and so were not paying US tax on contributions already. US will tax lump sum withdrawals as income, so do it before establishing residency in the US.


Quote:

and next questions is how would that work upon parmanent relocation back to CH in future sitn 2A ( tax free pay-in to the system with tax-free cash-out since tax is already paid at initial cash-out in case it's the option ?) - Answer : If a withdrawal is repaid, the taxes paid will be refunded without interest.
No requirement to pay back in.

Last edited by kerneltrick; 25.10.2021 at 11:24.
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Old 25.10.2021, 12:43
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Re: Pillar 2A when leaving CH residency & retain Swiss employment contract

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I don't see how that's gonna be possible


Consider US taxes, especially if you're not US citizen and so were not paying US tax on contributions already. US will tax lump sum withdrawals as income, so do it before establishing residency in the US.

No requirement to pay back in.
I never said anything on US taxes so that is not the concern here .

Reading what you said I assume you wanted to say "I don't know ?"
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Old 25.10.2021, 13:01
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Re: Pillar 2A when leaving CH residency & retain Swiss employment contract

https://www.internationaltaxreview.c...remote-working
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Old 25.10.2021, 13:10
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Re: Pillar 2A when leaving CH residency & retain Swiss employment contract

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I never said anything on US taxes so that is not the concern here .

Reading what you said I assume you wanted to say "I don't know ?"
Nope, it's you


I doubt you'll be treated as a cross border worker if working from US. For a start that'd mean ~ weekly commute between CH and your residency abroad.

Working remotely for swiss employers is certainly possible but that won't be a normal swiss work contract. Probably b2b or employment through a local bodyshop - ask your employer how they want to formalize terms of your US employment.
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Old 01.11.2021, 20:14
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Re: Pillar 2A when leaving CH residency & retain Swiss employment contract

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Nope, it's you



I doubt you'll be treated as a cross border worker if working from US. For a start that'd mean ~ weekly commute between CH and your residency abroad.


I doubt you'll be treated as a cross border worker if working from US. For a start that'd mean ~ weekly commute between CH and your residency abroad.


Where did I say "cross border worker"

or you read the link. so let me encourage you to read until 2nd paragraph which may reveal something of a surprise - far as second paragraph which clearly states that Swiss distinguish between cross-border and "international worker"

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Working remotely for swiss employers is certainly possible but that won't be a normal swiss work contract. Probably b2b or employment through a local bodyshop - ask your employer how they want to formalize terms of your US employment.
really ? why would I ?
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Old 01.11.2021, 20:25
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Re: Pillar 2A when leaving CH residency & retain Swiss employment contract

For all interested : Standard Swiss contract (managerial or else) without any alternation would do for up to 2-years remote work when all remains under standard Swiss law and only agreement between employer and employee and "delegation" is necessary. Form of delegation to "daughter/sister" company is ncessary so legal related entity must exist in destination country.

All Pillar2A/Tax/Health/accident insurance is done in CH.

Of course for anyone with any type of permits - one would need to work out with Swiss immigration office likely some arrangement there but I am not able to provide any information in respect to that.

Last edited by hoover1; 01.11.2021 at 21:32.
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