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-   -   pillar 1 and Pillar 2 related questions (https://www.englishforum.ch/finance-banking-taxation/223685-pillar-1-pillar-2-related-questions.html)

Kewlswiss 07.12.2014 16:54

pillar 1 and Pillar 2 related questions
 
1) Is there any website, which helps to see the balance on Pillar 1 a.k.a AVH ?

2) When any one changes the job, and tranfers from one pension fund to other pension fund (within switzerland), does it lead to reduction of money ?

cheers

Lakeside 07.12.2014 17:19

Re: pillar 1 and Pillar 2 related questions
 
For the AHV (pillar 1), you have to write to the specific "Kasse" with whom you are registered to know whether all payments are up to date - you can identify the Kasse by the number. There is no loss of funds when you change jobs. (no website to check as this is individual for each person)

For the second pillar, all you and your employer have paid in (minus the risk* contribution) gets transferred to the pension fund of your new employer or if you do not have one right away into a Freizügigkeitskonto at a bank or insurance company (you can choose one) or into the "Zentrale Auffangeinrichtung BVG" (currently the interest rate is better there than the banks who are currently all under 1%!)

Part of what you pay covers accident risk etc., so not all is saved towards your pension.

Brass427 07.12.2014 19:33

Re: pillar 1 and Pillar 2 related questions
 
If I remember correctly, the Freizügigkeitskonto is better if you're tranferring directly into a new job (ie with no interruption) but the Auffangeinrichtung is preferable if you are unemployed for a while, but I could be wrong.

Kewlswiss 07.12.2014 22:22

Re: pillar 1 and Pillar 2 related questions
 
Thank you Lakeside and Brass427.

If I understand correctly, the Pension Amount - Risk premium can be 100% transferrable to the new company's pension fund.

The Risk Premium can be transferred to the personal "Freizügigkeitskonto" eg: MY Bank - UBS
(https://www.ubs.com/ch/en/swissbank/...s/account.html) ?

Is that correct ?

cheers

Kewlswiss 07.12.2014 23:16

Re: pillar 1 and Pillar 2 related questions
 
BTW, I have new pension fund from the new employer.

so, does it mean Risk Premium from my old employer cannot be reimbursed at all ?

jjake 08.12.2014 09:10

Re: pillar 1 and Pillar 2 related questions
 
That's correct - the risk premium is the same as an insurance premium ... it is not saved up anywhere. It is calculated and paid to provide you cover in case of disability or death ...

Mica 08.12.2014 10:44

Re: pillar 1 and Pillar 2 related questions
 
Quote:

Originally Posted by Kewlswiss (Post 2297936)
1) Is there any website, which helps to see the balance on Pillar 1 a.k.a AVH ?

Order a statement of your individual account (also helpful to check whether you have any gaps in payments, which would lead to a reduction of your AHV-pension):
https://www.ahv-iv.ch/en/Leaflets-fo...vidual-account

DantesDame 19.12.2017 16:27

Re: pillar 1 and Pillar 2 related questions
 
Dredging up an old thread to add to it:

I am recently unemployed and have moved my 3a Fund to a separate bank account, so I think I have that bit taken care of. I also determined that it is not possible to contribute to it without being employed, so I guess it will just sit there for a while... :msncrazy:

However, for the AHV: should I be contributing to that? It is unclear if that is a fund that I can pay into regardless of my employment status.


This whole Pillar thing goes over my head, I'm afraid :msnblush:

ivank 19.12.2017 16:55

Re: pillar 1 and Pillar 2 related questions
 
Quote:

I also determined that it is not possible to contribute to it without being employed, so I guess it will just sit there for a while... :msncrazy:
It wouldn't make much sense to contribute to it anyway with a low income

Quote:

However, for the AHV: should I be contributing to that? It is unclear if that is a fund that I can pay into regardless of my employment status.
You're obliged to pay some minimums into it in any case
https://www.svazurich.ch/ne

It's not a fund, it doesn't work like a bank account. They spend your money right away on current pensions rather than invest in something. What you can get eventually paid out is determined by law, can change any time and it ain't much. Only the AHV you've paid on first 86400 Fr of your salary per year for example goes towards building out the pension benefit. With everything above you're essentially sponsoring swiss retirees for free with nothing in return

st2lemans 19.12.2017 17:13

Re: pillar 1 and Pillar 2 related questions
 
Quote:

Originally Posted by DantesDame (Post 2887548)
However, for the AHV: should I be contributing to that?

Only if you are single, or your spouse pays less than CHF 960/year into it.

Tom

DantesDame 19.12.2017 18:47

Re: pillar 1 and Pillar 2 related questions
 
Quote:

Originally Posted by ivank (Post 2887555)
It wouldn't make much sense to contribute to it anyway with a low income

Mine wasn't the only income in the household, so having a way of storing away money in that account would be nice.

Quote:

Originally Posted by ivank (Post 2887555)
You're obliged to pay some minimums into it in any case
https://www.svazurich.ch/ne

It's not a fund, it doesn't work like a bank account. They spend your money right away on current pensions rather than invest in something. What you can get eventually paid out is determined by law, can change any time and it ain't much. Only the AHV you've paid on first 86400 Fr of your salary per year for example goes towards building out the pension benefit. With everything above you're essentially sponsoring swiss retirees for free with nothing in return

Good to know, thank you :)

peaky 20.12.2017 09:09

Re: pillar 1 and Pillar 2 related questions
 
For your 3a, you should be able to contribute. Depending how long you are unemployed for, depends if it has any tax benefits or not. But As far as I know its not employment related.

For the AHV pension. If you are claiming RAV/Chomage, you will still be paying into the AHV. Depending how much your unemployed benefit is, depends if you are paying the same bracket as you were employed (again depending how long you're unemployed, this could affect the amount you are entitled to at retirement, I wouldnt worry so much about it)

Your company pension, 2nd pillar, this needs moving to a libre passage or vested benefit account. Your company will move this to theirs, which may not pay best interest, so you should look into it. WIR I found to be one of the best. The total amount will be moved and held. On employment again you are obliged to move this into the new pension fund. There is no fees for having the account, opening or closing it. This one is employment related and you cant pay into it unless employed

venetian 25.11.2019 21:46

Re: pillar 1 and Pillar 2 related questions
 
Hi everybody,

let me resume again this old thread with a couple question about 1st pillar...

- I came to Switzerland at the beginning of 2016. Can I pay AHV contributions before that?
- I am unemployed since end of March, and at the beginning of december (next week) I will start a new job. I have not applied to unemployment benefits. I assume I should pay the contributions for the missing 8 months... should I do it before the end of the year? Should I do it next year?

And, in general... how do I make these payments? I am navigating through a couple of sites in German (e.g. https://www.svazurich.ch/ne) but it would be nice to have some summary here :)

venetian 28.11.2019 20:09

Re: pillar 1 and Pillar 2 related questions
 
I'll reply to myself, after going to the AHV offices in Zurich.

First, if you are not resident in Switzerland you are not forced to pay the pillar 1, of course, but neither can you do it afterwards. The years before your moving are lost, contrarily to pillar 2.

Second, if you stop working for a while and you are still resident in CH, you can pay the missing contributions later; you don't need to if
- they are paid by unemployment insurance or other similar service
- your spouse is already paying at least twice the minimum
- you already contributed the minimum even without working the entire year
I've been told to worry about it next year, after 2019 calculations are complete, and to talk to my current AHV kasse at the time.

Cheers :)


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