Vested Benefits (2nd Pillar) - Frequently asked questions
How are assets invested?
In your capacity as a pension-fund member, you have an inalienable right to a portion of the assets in the Foundation, represented in the form of shares in the respective portfolios. When a member subscribes to shares in a portfolio, the shares are issued on the day following receipt of the payment. The subscription price is the net asset value of one share as calculated two business days following the value date of the amount credited to the account.
How to change (switch) your allocation?
You are free to switch the allocation of your capital between the different investment portfolios at any time as your goals, personal circumstances or the financial markets dictate. You may also choose not to invest all or part of your assets at times. Your instructions must be sent in writing to the Foundation, which will make the change on the day following receipt of these instructions.
When is the pension capital paid out?
Your vested pension capital will be distributed to you when you reach the normal AVS retirement age (Art. 13(1) LPP/BVG). Should you die before reaching this age, the capital will be paid out to your designated beneficiary(ies). You may, however, request that your assets be paid out five years before (at the earliest) or five years after (at the latest) the said retirement age.
Under what conditions can I withdraw my pension capital?
As a member of the pension fund, you may request the Foundation to redeem your shares (subject to your spouse’s or civil partner’s consent, if applicable), if:
- you become self-employed and are no longer subject to mandatory occupational pension coverage;
- you use your capital to purchase residential property in accordance with the provisions of Swiss law and relevant ordinances regarding the encouragement of home ownership using retirement funds;
- you use the capital to repurchase benefits from a tax-exempt pension scheme, or for another recognized form of pension coverage;
- you leave Switzerland for good;
- you become entitled to the federal disability pension from the Federal Disability Insurance Fund.
How are assets divested from the Foundation?
If you fulfil the conditions of Articles 9 and 10 of the Foundation’s regulations, you may request in writing to have your shares redeemed. The redemption price is the net asset value of one share as calculated two business days following receipt of the redemption request.