I am trying to move my spouse’s 2nd pillar out of a big insurance company (which is currently paying a whopping 0.5% non-guaranteed interest on the money) into a better place, like VIAC.
I thought it’d be as easy as filling out a form, instead we are asked to meet someone in person, provide a long list of documents (including the extract from the very same 2nd pillar account, held at the very same company, which “for privacy reasons” the employee helping us cannot access…).
Asking the ones who moved it (and potentially split it in two): how did that work for you?
Are you talking about pension fund or vested benefits? VIAC is no pension fund, they only offer vested benefits.
Moving yourself (as self-employed) or a company from one pension fund to another is quite a bit of (paper) work, yes. The new pension fund need quite a bit of information of the insured people to comply with regulations.
Just currently unemployed and the money landed into this insurance without any questions being asked (ok, we could have been more proactive at the time).
btw, usually people recommend e.g. viac or finpension for equity investments. If the goal is to reenter the workforce short term, you’d want something less volatile and it might not be the best setup (and 0.5% isn’t too bad either).
ok. I assume it’s something like this. According to this fact sheet, a transfer shouldn’t be that difficult. Maybe it’s my prejudice, but having money at an insurance company sounds like unnecessary complications (I’m thinking of their 3a scams).
If you do nothing, your money will usually end up here:
The steps should be simple:
Open a vested benefits account at VIAC
Inform your previous provider where they should transfer the money to
VIAC also describes this in the FAQ:
After you have completed the opening process, you will enter your personal VIAC Cockpit. There you click on the navigation element “Transfer” and can generate your ready-made transfer order. All you have to do is complete this order with your personal details, sign it and send it to your previous pension fund / vested benefits foundation.
Just found out. Unfortunately, I can’t use their great offer
Nos produits et services sont réservés aux personnes ayant un lien avec le canton de Vaud, en conformité avec les dispositions légales qui nous régissent.
The situation you describe is common. Many employers use a pension fund from an insurance company (e.g. Axa). When your employment ends, this same insurance company will offer one of their vested benefits solutions by default, as that is obviously in their interest. If you simply sign/agree without proactively specifying that you do not want to use their vested benefits solution, then that is that.
Like other cash-value life insurance products, vested benefits insurance policies are generally a bad deal for you (but very profitable for the insurance company). What’s more, terminating a vested benefits life insurance policy is a good deal more complicated than closing a vested benefits account or investment solution (hence all the paperwork).
It is also very likely that terminating this policy could result in a loss, as its cash value could be lower or even much lower than the sum total of premiums paid in (i.e. your pension fund benefits). I suggest you study the Ts&Cs of your policy carefully or at least get clear confirmation from the insurance company about the amount that will actually be paid out (into your new vested benefits solution).
There is a difference between pillar 2 (pensionskasse, caisse de pension) and vested account (freizügigkeitskonto, compte de libre passage).
The first is organized by the current employer and there is no choice, you cannot move it (unless you change job). Contributions to it are based on the salary. Pillar 2 includes coverage for invalidity and death. Upon retirement you can chose between a pension and the capital, and often a mix of both.
The second is when terminating employment (not retiring), the pillar 2 is moved into a vested account. You can choose your provider and even move the account between providers easily. You can invest the money in a limited set of funds. And you cannot contribute to it (with the exception of filling a gap left by a taking money out for acquiring property). It usually doesn’t have coverage for invalidity and death. Upon retirement you can only get the capital.
Usually the providers for pillar 2 and vested accounts are also different because the requirements are different. Vested accounts are vastly cheaper, because they have to handle many less transactions and changes than a pillar 2, but also tend to put the risk on the customer (you chose the investment yourself and bear the risk).
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