LPP Vesting: Who Qualifies and What You Get
Learn how to transfer your pension assets when changing jobs to ensure your retirement savings remain secure.
LPP Vesting allows you to move your accumulated pension savings from one employer to another when you change jobs. This process ensures your retirement assets follow you throughout your career.
Who it's for
This scheme is for employees who are changing jobs and need to move their existing pension assets to a new pension fund.
What you get
You can transfer your accrued pension assets—sometimes referred to as Freizügigkeitsleistung—directly into the pension fund provided by your new employer. This keeps your retirement savings consolidated.
What it costs you
There is no direct monetary cost to you, though there is some administrative paperwork required to coordinate the transfer between the different pension funds.
The catch to know
If your new employer does not have a pension fund, you cannot transfer the money directly to them. In this case, your assets must be moved to a specialized vested benefits account to keep them safe.
How to apply
- Inform your new employer about your existing pension assets.
- Coordinate with your previous pension fund to begin the transfer process.
- Provide the necessary documentation to ensure the funds move to the correct destination.