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Old 01.06.2021, 15:38
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pillar 2: missed years vs extra-mandatory to BVG / LPP

After looking at quotes from different companies, I noticed some of them offer a plan where every member pays an extra-mandatory contribution. Others offer a choice, you can pay the legal minimum, mandatory contribution and nothing more. For example, Zurich offered me four different permutations.



From an ex-pat perspective, if you have extra money, it appears better to purchase missed years than to pay over the legal minimum as a regular payroll deduction. If you use the money to purchase missed years then that part of your fund is treated as a mandatory contribution and has a higher conversion rate at the end.


I've also heard of some employers and recruitment agencies steering people into the extra-mandatory contributions. This doesn't seem like a good idea for any ex-pat who has arrived in Switzerland mid-career: it basically means you are subsidizing past employees when you could be filling your own pension shortfall with the same money.
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Old 01.06.2021, 18:04
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Re: pillar 2: missed years vs extra-mandatory to BVG / LPP

Lump sum contributions are locked up for 3 years - you can't withdraw anything, neither as cash if you emigrate nor towards house purchase. If you try, you lose all tax benefits of original contribution.

Whereas regular contribution via salary are not - so it's probably best to jack them up as much as possible in your last 3 years in CH.

Another point to consider is that depending on where you're going to after CH, you also might not be allowed to withdraw mandatory part of pillar 2, but only the extra-mandatory.
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