Advice and Products Vested Benefits – 2nd Pillar
To ensure that you still have pension coverage even when you are temporarily not a member of any pension fund, your pension fund assets must be transferred to a vested benefits institution.
The Credit Suisse Vested Benefits Foundation – 2nd Pillar offers you attractive options for investing your vested benefits and enjoying tax advantages.
Vested benefits account – 2nd pillar
If you leave your current pension fund but do not join a new one, your pension coverage must still be maintained: Your pension fund assets will be transferred to a vested benefits institution as required by law. To see the conditions, go to Opening an account and withdrawal options.
Or use a Vested benefits safekeeping account – 2nd pillar3 to benefit from attractive long-term return opportunities by investing in securities.
Vested benefits safekeeping account – 2nd pillar
Thanks to our broad selection of actively managed and indexed securities solutions, you can find an appropriate investment group that meets your risk profile and investment time horizon. Apart from a flat fee, there are no other safekeeping fees, issuing, or exit fees. Depending on the risk tolerance and risk ability, you can also invest in securities with your Vested benefits – 2nd pillar. With our CSA Mixta-BVG product range, you have seven investment groups available to choose from.
Actively managed or indexed securities solutions
Actively managed securities solutions:
Specialized portfolio managers take steps to maximize your returns for the long term. Select from four broadly diversified solutions, which differ mainly by their equity component.
Indexed securities solutions:
Here, investments are made in investment funds that very precisely replicate the indices and hence the performance of the respective markets. Select from three cost-effective solutions with different equity components.
Unlike an account solution, investments in securities have potential risks.
- Market risk: The CSA Mixta-BVG investment groups invest in various financial markets and are subject to their price fluctuations.
- Management risk: Investment decisions within the CSA Mixta-BVG investment groups are made by the portfolio management and cannot be influenced.
- Foreign exchange risk: Investing in a variety of financial markets can carry currency risks.
Further details and risks can be found in the Second Pillar Product Sheet (PDF).
Whether you choose a Vested benefits account – 2nd pillar or Vested benefits safekeeping account – 2nd pillar, you will benefit from the same tax advantages:
- You pay no wealth, income, or withholding tax throughout the entire term of the savings plan.
- On payout, the capital is taxed at a reduced rate separately from the rest of your income.
If you withdraw your vested benefits prematurely to buy owner-occupied residential property, this results in a tax obligation – at a reduced rate and separately from your other income. If you repay the capital withdrawn at a later date, you can be refunded for this tax, but without interest.
According to the law, your pension coverage must still be maintained even if you leave your current pension fund and do not join a new one. It is then advisable to open a Vested benefits account – 2nd pillar or Vested benefits safekeeping account – 2nd pillar. This is the case if you:
- change jobs and your pension fund balance is not immediately (or not fully) transferred to the pension fund of your new employer.
- become self-employed and do not have your retirement capital paid out.
- lose your job.
- take temporary leave to care for your family full-time, and do not have paid employment.
- are not enrolled in professional education or further training.
- get divorced.
- stay abroad for a longer period of time.
Generally you can start drawing on your vested benefits once you reach AHV retirement age, or a maximum of five years later if you continue to work. The law permits early payout in these cases:
- At the earliest, five years before reaching the AHV retirement age.
- If you buy residential property for your own use.
- On becoming self-employed within one year.
- When permanently leaving Switzerland (emigration).
- Entitlement to a full disability pension.
- If you die, the pension capital goes to the beneficiaries.