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Old 15.10.2020, 19:21
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Pension Law Changes - Unemployment at 58 and older

Effective 1 January 2021, employees, who are 58 and older and who are terminated by the employer, can remain in the employer's pension plan. This is a translation from a City of Zurich Pension Plan webpage which describes the pension law changes:

"For all insured persons from age 58

From 2021 onwards, it will be possible for all insured persons aged 58 or older to remain in the pension fund if the employment relationship is terminated by the employer.

This improvement in the occupational pension scheme for insured persons is linked to the reform of the supplementary benefits and the corresponding changes in the BVG, which will come into force on 1 January 2021.

Continued insurance as an opportunity

This is an opportunity for you as an insured person in the event of unemployment your pension will be retained. Insured persons whose employment relationship was terminated by the employer after 31.07.2020 can remain insured with the pension fund from 1 January 2021.

The new rules apply from 1 January 2021:

  • Insured persons from age 58 can voluntarily decide to remain with the pension fund if the employer terminates the employment relationship and they are not insured through a new employer.
  • The repayment of a WEF ("promotion of home ownership") advance withdrawal is also made easier: Repayments are now possible until retirement.
  • Reclaims of supplementary benefits can be offset directly against pension fund benefits."
https://www.pkzh.ch/content/pkzh/de/...020-23-07.html
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Old 15.10.2020, 19:40
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Re: Pension Law Changes - Unemployment at 58 and older

So letís get this straight. The goverment are making it more expensive for companies to fire older people and therefore they will never hire a 50 year old. Thatís the consequences

I just hope the pension funds are well capitalised and donít go bust like in the Uk
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Old 15.10.2020, 19:50
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Re: Pension Law Changes - Unemployment at 58 and older

I'm not sure it would be that much more expensive - I assume the company doesn't have to keep paying, you just don't have to go to the bureaucracy of moving the funds to another account.
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Old 15.10.2020, 20:16
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Re: Pension Law Changes - Unemployment at 58 and older

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I'm not sure it would be that much more expensive - I assume the company doesn't have to keep paying, you just don't have to go to the bureaucracy of moving the funds to another account.
Depending on ones risk profile, moving would probably be preferable. I doubled my Swiss pension in 5 years in CHF with fundsmith. What is the earliest age you can vest the benefits, 63 as pillar 1 or earlier?
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Old 15.10.2020, 22:20
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Re: Pension Law Changes - Unemployment at 58 and older

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Depending on ones risk profile, moving would probably be preferable. I doubled my Swiss pension in 5 years in CHF with fundsmith. What is the earliest age you can vest the benefits, 63 as pillar 1 or earlier?
By the time you've reached a good age it would quite possibly be financially better to retire simply so you can invest your pillar 2 properly instead of having it languish in a typical Swiss pillar 2 account.
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Old 27.11.2020, 16:35
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Re: Pension Law Changes - Unemployment at 58 and older

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By the time you've reached a good age it would quite possibly be financially better to retire simply so you can invest your pillar 2 properly instead of having it languish in a typical Swiss pillar 2 account.
Or transfer the vested fund to VIAC along with your Pillar 3, and invest in equities bundled up into various funds.
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Old 16.10.2020, 08:55
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Re: Pension Law Changes - Unemployment at 58 and older

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Depending on ones risk profile, moving would probably be preferable. I doubled my Swiss pension in 5 years in CHF with fundsmith. What is the earliest age you can vest the benefits, 63 as pillar 1 or earlier?
Can you move your Swiss funds to a non-Swiss-pension provider at that age? I didn't think so?

Obviously at retirement you can withdraw the funds and invest them wherever you like.
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Old 16.10.2020, 09:19
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Re: Pension Law Changes - Unemployment at 58 and older

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Can you move your Swiss funds to a non-Swiss-pension provider at that age? I didn't think so?

Obviously at retirement you can withdraw the funds and invest them wherever you like.
If you leave the country & not working or become 'self employed' almost certainly yes.
You are leaving the pension due to 'not working'
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Old 15.10.2020, 20:59
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Re: Pension Law Changes - Unemployment at 58 and older

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I'm not sure it would be that much more expensive - I assume the company doesn't have to keep paying, you just don't have to go to the bureaucracy of moving the funds to another account.
That's right. The company does not have to pay any further contritutions.

Contributions comprise a risk portion and a savings portion.

For the risk portion, an ex-employee who elects to remain in the company's pension plan must pay in the employee's and the employer's contribution.

If the ex-employee defaults, then the pension plan can warn and, in the absence of the ex-employee catching up those payments, the ex-employee can be excluded from the pension plan.

In other words, the way to keep the cover is to
a) make sure you don't miss the deadline to declare that you want to continue, and
b) reliably pay in the risk portion, both your own and that which was formally covered by the employer.

For the savings portion, contributions are voluntary.
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Old 15.10.2020, 21:29
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Re: Pension Law Changes - Unemployment at 58 and older

can I just ask whether there have been any scandals like big corps pensions blowing up. Similar to BHS or other Uk companies that had massive pension defecits

As more money gets stuffed in my pension I worry that my salary and pension is with one company - Hardly diverisifcation is it

Has the CH goverment ever stepped in and saved a collapsed pension scheme?
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Old 15.10.2020, 21:54
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Re: Pension Law Changes - Unemployment at 58 and older

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can I just ask whether there have been any scandals like big corps pensions blowing up. Similar to BHS or other Uk companies that had massive pension defecits
Sure: BKV ZŁrich comes to mind. https://www.handelszeitung.ch/die-bvk-affaere

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Has the CH goverment ever stepped in and saved a collapsed pension scheme?
Yepp, but it was the canton ZH goverment, or to be more precise the taxpayer. But that was because they were there own PK. Otherwise they have to get their shit together themselves.

But when private pension provider goes bankrupt some of the money is insured by the BVG-Sicherheitsfond risk.http://www.sfbvg.ch/xml_1/internet/E...cation/f68.cfm


https://www.freiburger-nachrichten.c...ht-der-konkurs
https://www.srf.ch/news/schweiz/mill...dal-verwickelt
https://www.handelszeitung.ch/untern...tos-finanziert
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Old 15.10.2020, 20:35
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Re: Pension Law Changes - Unemployment at 58 and older

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So letís get this straight. The goverment are making it more expensive for companies to fire older people and therefore they will never hire a 50 year old. Thatís the consequences
For the company it is or should not be more expensive as the pension plan itself is normally outside of the companies budget and the contributions is solely defined by the pay roll of the actual active employees.

It just means that the money remains in the pension plan. The main benefit for the employee is that the get an entitlement for a pension instead of the lumpsum once they reach the pension age.


@fatmanfilms: Depends on the pension plan. Some allow withdrawal at age of 58 to 60.
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Old 15.10.2020, 20:50
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Re: Pension Law Changes - Unemployment at 58 and older

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It just means that the money remains in the pension plan. The main benefit for the employee is that the get an entitlement for a pension instead of the lumpsum once they reach the pension age.

Depending on the size and state of the pension fund that may or may not be a good situation.
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Old 15.10.2020, 20:53
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Re: Pension Law Changes - Unemployment at 58 and older

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Depending on the size and state of the pension fund that may or may not be a good situation.
One has still the option to transfer it to an other vested benefit account with better performance or depending on the age get the money as an early lumpsum payment which would allow to freely invest the money.
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