Does my pension fund have to allow splitting?
No, you should ask your pension fund in advance whether it allows splitting and how to go about dividing your funds. For example, you can either split your funds 50:50 or divide them into mandatory (BVG) and supplementary assets (BVG-ÜO).
Where is pension fund splitting regulated in law?
Where is pension fund splitting regulated in law?
Pension fund splitting is regulated in Art. 12 para 1 of the Vested Benefits Ordinance (VBO) in connection with Art. 4 para 1 of the Vested Benefits Act (VBA). It allows termination benefits from the previous retirement benefit plan (pension fund) to be transferred to a maximum of two vested benefits foundations for each vested benefits event.
Why does frankly have two vested benefits foundations?
Why does frankly have two vested benefits foundations?
When you leave your previous pension fund, you have a one-time opportunity to split your assets between a maximum of two vested benefits accounts with different vested benefits foundations. This option, which is referred to as pension fund splitting, gives you more flexibility later on when making withdrawals, as well as potential tax advantages, particularly if you don’t plan to join another pension fund, such as for example when taking early retirement. However, it is forbidden by law to maintain two accounts from the same vested benefits event with the same foundation. This also applies if you already hold more than one vested benefits account from one vested benefits event and you would like to transfer them to frankly.
If you want to open only one account, however, the choice of foundation doesn’t make a difference. Both the all-in-fee on the securities portfolio and the interest rate on your cash assets are the same. The same vouchers and discounts also apply, including the community discount.
Please note: A vested benefits event occurs when a person leaves the pension fund before making a claim (e.g. due to old age, death or disability).
Can I save on taxes in every canton by withdrawing my vested benefits staggered over multiple years?
Can I save on taxes in every canton by withdrawing my vested benefits staggered over multiple years?
Withdrawing vested benefits over multiple tax years in order to avoid progressive taxation is treated differently depending on the canton. Please consult a tax expert or the relevant tax authority in advance about the specific rules that apply in your canton.
Do I have to pay my vested benefits into the pension fund again when I start a new job?
Do I have to pay my vested benefits into the pension fund again when I start a new job?
Yes, you are legally obliged to pay your vested benefits into your new pension fund when you start a new job. You can leave part of your assets in your vested benefits account only if your new pension fund is subject to a purchase restriction. In this case, we ask you to send us the corresponding purchase restriction together with the transfer order.
Can I defer my vested benefits beyond reaching the reference age (retirement age)?
Can I defer my vested benefits beyond reaching the reference age (retirement age)?
Yes, you can defer your vested benefits until 31 December 2029, however only up to a maximum of five years after reaching the reference age (see also Reform AHV 21). As of 1 January 2030, deferring your vested benefits will be allowed only if you can prove on an annual basis that you are still in employment, the same as under the rules which currently apply to the pillar 3a.
