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  #81  
Old 02.07.2012, 14:09
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Re: Freizuegigkeitskonto [vested benefit account]

Thanks so much for sharing your expert knowledge on this.
My previous company(X) has submitted X Value in my Previous Pension Company(X). When they have transferred the funds to Freizuegigkeitskonto(1) they transferred nearly 20 percent less money of X amount which got accumulated in Pension Account (X)

I never received any written details about this deductions and that what was told as my Age is 30 years and have no kids that's why the deductions has been done.

Now this is second time I will be facing this so I was worried whether I have to see similar deduction on whole amount. Which you confirmed will not happen this time.

Is there any formal statement I should have received from my Previous Pension company about these deductions and can I count these deductions towards my Tax deductions?
Thanks once again in advance for sharing the insight.
Best Regards.
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  #82  
Old 02.07.2012, 14:18
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Re: Freizuegigkeitskonto [vested benefit account]

Yes, you should receive at minimum annual statements from the employers pension fund, as well as a fresh statement each time there is an addition or withdrawal.

I suggest you go back to them and ask for the final statement as well as the rules of the pension fund.

It could be possible your old employer had a defined benefit/final salary scheme = 'Leistungsprimat' in German. These are quite rare in Switzerland, but in this case your transfer value is calculated based on different criteria from the 'Beitragsprimat' savings type scheme.

Dan

Last edited by dannyt986; 02.07.2012 at 14:19. Reason: Typos
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  #83  
Old 02.07.2012, 14:22
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Re: Freizuegigkeitskonto [vested benefit account]

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I did not split my Fz.. frankly at the time I made the move, I was not aware either of this possibility or of the benefits of splitting.

Anyone know if I can split now, or can that only be done at the time of opening the Fz?

I was told that moving into and out of equity funds is quick and free ("as long as you don't want to switch every week", my adviser told me in a very stern Deutsch accent). However, he also told me that the funds were no-cost, which I did not frankly believe, and later found that statement to be untrue. (the expense ratio is about 0.8% - see here)
2% is much better than UBS are offering.

Whenever the Swiss say no cost they mean direct cost, of course the underlying fund has costs, as may the units which that fund itself holds if its a fund of fund type thing.

I always avoid equity investment inside the pension pot, as i) it should be safest investment you have ii) capital gains are tax free in CH anyway so why chase them in a tax efficient wrapper.
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  #84  
Old 27.11.2012, 15:59
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Re: Vested benefits account

Has anyone experienced having to transfer their pension to a vested benefit account when leaving Swizterland? If so, any advice on providers and options?

Thanks
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  #85  
Old 27.11.2012, 16:48
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Re: Vested benefits account

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Has anyone experienced having to transfer their pension to a vested benefit account when leaving Swizterland? If so, any advice on providers and options?

Thanks
Welcome to the forum. This has been discussed quite a lot in other threads so have a look around.

In a nutshell you can leave it a vested account, either cash savings or upto c.40 equity portfolio. Pretty much all banks and institutions offer these. Use comparis.ch to research (look at the 3rd pillar rates, should give a clue who does good 2nd pillar accounts).

Or in some situations you may be able to have some or all the pension pot repaid at a fairly modest tax rate (as little as 8% with some planning).
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  #86  
Old 27.11.2012, 16:54
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Re: Vested benefits account

I noticed comparis.ch doesnt seem to bench mark 2nd pillar savings accounts.

See http://www.vorsorgeexperten.ch/anbie...gleich-zinsen/
for cash savings.

Clearly for portfolio style funds, investments may go up as well as down etc and past performance is generally no guide to future performance.
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  #87  
Old 21.06.2013, 16:17
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Re: Freizuegigkeitskonto [vested benefit account]

Just catching up here... What do we think Ana acceptable range of fees is for this.. been offered 0.2 foundation fees per year, with investment fund fees of 0.4... So 0.6 in total with the 30chf a month management. If I'm moving my whole pot that's a few thousand a year for what is essentially a tracker fund..
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  #88  
Old 10.10.2013, 22:50
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Re: Freizuegigkeitskonto [vested benefit account]

http://www.liberty-vorsorge.ch/en/ve...moving-abroad/

This looks like a good option as they are based in Canton Schwyz
with the lower tax rate when cashing in your pension on leaving Switzerland.
I am thinking of using them when I depart Switzerland.
Anyone used them before?
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  #89  
Old 12.10.2013, 11:02
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Re: Freizuegigkeitskonto [vested benefit account]

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http://www.liberty-vorsorge.ch/en/ve...moving-abroad/

This looks like a good option as they are based in Canton Schwyz
with the lower tax rate when cashing in your pension on leaving Switzerland.
I am thinking of using them when I depart Switzerland.
Anyone used them before?
Looks interesting but on the site it says that the tax on vested benefits takeout is as per the canton rates where the institution is based. I thought it was calculated as per the canton rate where you have last lived!!
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  #90  
Old 23.10.2013, 20:05
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Re: Freizuegigkeitskonto [vested benefit account]

My understanding is that, if you have left Switzerland, the tax rate for the domicile of the pension foundation applies and that it's only the rate of the canton where you live if you withdraw money while still in Switzerland. This was discussed earlier in this thread by the way. I'm also thinking of using Liberty in Schwyz. Their fees/charges appear to be competitive.
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  #91  
Old 19.08.2014, 16:29
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Re: Freizuegigkeitskonto [vested benefit account]

I'm considering my options about these accounts, I would like to have the maximum % possible invested in equities (apparently there is an upper limit by law, around 45%?)... The comparison website I found just compares the fixed interest rate versions (which all suck, best was 1%).

Does anyone one have recent opinions or information on these accounts? Are the known banks' (e.g. UBS) offers any good or they rely on being known to get clients that don't bother comparing?
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  #92  
Old 21.08.2014, 11:12
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Re: Freizuegigkeitskonto [vested benefit account]

So after some looking around I found an interesting option on Credit Suisse, investing mostly in stocks and bonds.

Went there (Spalenberg branch here in Basel) today, they told me first they only did the interest rate account for 2nd pillar, I explained I saw the investing options in the net. They called Zurich (HQ?) asked me to wait, then about 15 min later someone called them back, called me to the counter again and explained that as I will have an address outside Switzerland, I couldn't have the investment option unless I had over 1 MCHF (in the 2nd pillar? Ouch - not that I have it even if I combine all my stuff but anyway).

Now I wonder if the same will be the case for the "investment" options in UBS etc. :/
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  #93  
Old 21.08.2014, 11:23
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Re: Freizuegigkeitskonto [vested benefit account]

I have a Pictet account for the second pillar that invests in stocks, I have been quite happy with its performance vs other similar risk non pension investments I have.

They were also familiar with and were very helpful with a "DIY" QROPS transfers out of the UK which is how I found them in the first place.
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Old 21.08.2014, 11:37
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Re: Freizuegigkeitskonto [vested benefit account]

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I have a Pictet account for the second pillar that invests in stocks, I have been quite happy with its performance vs other similar risk non pension investments I have.

They were also familiar with and were very helpful with a "DIY" QROPS transfers out of the UK which is how I found them in the first place.
I have an account with Pictet, perfect English & all documentation in English.
Also no commission taken from QROPS transfers if done directly.
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  #95  
Old 21.08.2014, 11:45
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Re: Freizuegigkeitskonto [vested benefit account]

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I have a Pictet account for the second pillar that invests in stocks, I have been quite happy with its performance vs other similar risk non pension investments I have.

They were also familiar with and were very helpful with a "DIY" QROPS transfers out of the UK which is how I found them in the first place.
Thanks. I had a look and although it seems promising (and I may end up trying them), I would prefer something with a lower expense ratio (the Credit Suisse option I wanted was indexed and had 0.84% annual expense ratio, as far as I understand; whereas Pictet has 1.25% on the option I would want, plus 2% off at the start when you transfer in). I'm not on the QROPS transfer of course, just 2nd pillar.
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Old 22.08.2014, 10:18
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Re: Freizuegigkeitskonto [vested benefit account]

An update - I e-mailed the Credit Suisse 2nd pillar people (which is apparently by AXA) and apparently the info about the 1 Million CHF was incorrect. I will try to open the account and then when the funds arrive from the Pension plan, direct them into the specific investment option I wanted.

I'm a bit annoyed with the 2 ladies at the Credit Suisse branch I went to, and whoever was on the other side at the line for giving me incorrect info.
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  #97  
Old 22.08.2014, 13:41
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Re: Freizuegigkeitskonto [vested benefit account]

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An update - I e-mailed the Credit Suisse 2nd pillar people (which is apparently by AXA) and apparently the info about the 1 Million CHF was incorrect. I will try to open the account and then when the funds arrive from the Pension plan, direct them into the specific investment option I wanted.
I'm a bit confused as what you are trying to achieve... For the most part the Freizuegigkeitskonto is a holding account where pension savings are held between employments. So unless you are exiting the work force putting it into one of the 25/45 options for the short term might not work out so well.
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Old 22.08.2014, 14:52
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Re: Freizuegigkeitskonto [vested benefit account]

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I'm a bit confused as what you are trying to achieve... For the most part the Freizuegigkeitskonto is a holding account where pension savings are held between employments. So unless you are exiting the work force putting it into one of the 25/45 options for the short term might not work out so well.
Agreed the 45 option is not wise short term, but I'm leaving the country and don't foresee coming back to Switzerland for work soon. I thought of trying to withdraw it, but even if I could I would have to pay 40% tax on the amount which is highly unappealing.

If I come back to Switzerland in the short term (as I say, unlikely), it is probably because I got a rather nice job, so I won't be upset even if I take losses on the 45 fund going back to the 2nd pillar.
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Old 22.08.2014, 18:34
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Re: Freizuegigkeitskonto [vested benefit account]

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Agreed the 45 option is not wise short term, but I'm leaving the country and don't foresee coming back to Switzerland for work soon. I thought of trying to withdraw it, but even if I could I would have to pay 40% tax on the amount which is highly unappealing.



If I come back to Switzerland in the short term (as I say, unlikely), it is probably because I got a rather nice job, so I won't be upset even if I take losses on the 45 fund going back to the 2nd pillar.

Actually the 45 is the best option, if it falls you pay less tax on exit & can reinvest in equities at a lower cost , do your a net winner.
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  #100  
Old 23.10.2014, 10:46
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Re: Freizuegigkeitskonto [vested benefit account]

Would like to ask if anyone has opened a Freizügigkeitskonto (vested benefit account) lately? The interest seems very low (expected) and unfortunately comparis does not have a list for comparison. From other websites I gather Generali or Volksbank are offering the best rate of 1%?
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