Pillar 2 Vested Benefits: Who Qualifies and What You Get

This scheme allows you to move your accumulated pension capital from one employer to another when you change jobs, ensuring your retirement savings remain continuous.

👤Who it's for

This scheme is designed specifically for employees who are changing jobs. When you leave a position, the pension capital you have built up must be managed so that it is not lost during your transition to a new role.

🎁What you get

The primary benefit is the seamless transfer of your pension capital to your new employer's fund. This process ensures that the money you have saved toward your retirement continues to work for you and remains part of your long-term financial security as you move through different professional stages.

💰What it costs you

There are no direct personal fees paid by you to receive this benefit, but there is an administrative cost involved. This cost covers the necessary coordination and communication required between your old pension fund and your new pension fund to ensure the funds move correctly from one institution to the other.

⚠️The catch to know

One important detail to keep in mind relates to your residency status. If you decide to leave Switzerland permanently, the rules change; you may be able to withdraw a portion of these vested benefits as a cash payment rather than simply transferring them to a new fund. You should check the specific rules regarding cash withdrawals if you are planning a move out of the country.

📝How to apply

1. Notify your new employer or their pension provider that you have pension capital from a previous role that needs to be transferred.
2. Provide your old pension fund with the necessary details of your new pension provider to facilitate the movement of funds.
3. Work with both your old and new funds to manage the administrative coordination required for the transfer.
4. Monitor your pension statements from both your old and new providers to ensure the records reflect the transfer of your capital.