Just got a mail from Finpension that they implemented a referral system. Apparently, one can get 25 Francs discount on fees (I guess this is a one-time discount). The person using the referral code has the chance (1:1000 I believe) to win an entire annual 3a contribution.
Compared to VIAC, the referral bonuses are worse (because non-recurring) but then again, there is no upper limit.
Any other cases like that recently?
I am changing jobs in a few months and may inadvertently leave a portion of the money in VIAC or Value Pension in the process, to be invested. I am in early thirties and itâs better for the long term.
Plot twist, the new employer actually has a defined benefit 2nd pillar (rare) which pays around 1.5% of the insured salary per year of contribution. Makes it quite difficult to compare to a vested benefit investment solution⊠so I may split 50/50âŠ
Any other ideas?
Out of curiosity: how do they âtranslateâ the balance you currently have into that definition of benefits?
I looked it up and there is a table depending on your age, the amount of vested benefit that I bring will be used to âpurchaseâ years of contribution, the cost at my age is around 12% of the insured salary per year.
If you leave the firm the same table is used to translate your âyearsâ into vested benefit. The % increases with age.
Can you work out how much your transfer value would increase each year?
In defined benefit plans the transfer value usually grows slowly when young and then accelerates after 45-50. So they are « better » if you plan to stay until close to retirement age. Otherwise defined contribution plans might be better
I was about to do that, and then found out from the PK website that they are transitionning to a classic âdefined contributionâ scheme from 2023⊠so this will make things easier hopefully. Iâll contact them directly for info. Likely this means the retirement assets are remunerated at the standard technical rate (or slightly better, but clearly less than if invested). Thanks all.
Hope that because of your age you wonât lose money with that double translation!
Perfectly in time. I went ahead with 50% to VIAC and ValuePension.
ValuePension is objectively better but splitting gives flexibility when withdrawing later in life.
Iâll do DCA over the next few months because the market is a bit frothy (and Iâll sleep better)
If you prefer one provider over the other, you can also open multiple accounts with both VIAC and FinPension.
It is not permitted to manage two accounts with the same vested benefits foundation.
And their interpretation requires the further interpretation that keeping a vested benefits account while in a new working relationship is fine in regards to the law. Food for thoughts.
I hadnât given this any thought, I just shared as I remembered seeing it.
Are there valid cases where it is not obligatory to move all vested assets to your employer, for ex. If assets> max permitted amount in employer plan?
Thanks for it, Iâm curious too. Thatâs the option Iâve thought of but there probably are others too.
Obligatory transfer is only about the mandatory part. 7% / 10% / 15% / 18% of your insured salary up until 61k (86k - 25k Koordinationsabzug). So letâs assume someone starts working with 25 and switches the employee 5 years later. He had an avg. salary of 125k and an insured salary of 100k (-25k Koordinationsabzug). As his pension fund was pretty good, the deductions were 5%/10% instead of the required minimum of 3.5%/3.5%.
5 years x 7% x 61k = 21.5k mandatory BVG.
5 years x 15% x 100k = 75k total.
At least 21.5k need to be transferred to your next pension fund, the rest is extra mandatory and you are free to transfer that to a vested benefits account.
Not while your working there, but when you leave them.
This extra mandatory part is also the amount that you can always withdraw once you leave Switzerland.
I see no legal basis for that.
The law also covers non-mandatory benefits and clearly says that termination benefits have to be transferred to the new pension fund (art. 3 FZG) to be used to âbuy inâ to the new pension plan. Only when that is maxed out, as @Barto said, are you free (or you have) to transfer it elsewhere (art. 13 FZG).
Not while youâre working there and covered by their pension fund planâŠ
âŠand neither when you leave and join a new employer fund with pension fund coverage.
And again, even if you did transfer it to a vested benefits foundation during a period of not being insured with a pension, you are obliged to close your accounts there and have them (including any non-mandatory part) transferred to your new pension fund upon becoming insured with them.
To back this up, see Mitteilungen ĂŒber die berufliche Vorsorge from the Bundesamt fĂŒr Sozialversicherungen (page 47):
âAb 1. Januar 1995 gilt der Grundsatz, dass die Austrittsleistung (FreizĂŒgigkeitsleistung) von der bisherigen Kasse zur Vorsorgeeinrichtung des neuen Arbeitgebers ĂŒbertragen werden muss. Die Ăbertragung der Austrittsleistung auf eine FreizĂŒgigkeitspolice oder auf ein FreizĂŒgigkeitskonto ist nur dann zulĂ€ssig, wenn der Versicherte keiner neuen Vorsorgeeinrichtung beitritt. Das könnte dann der Fall sein, wenn der Versicherte in der Schweiz keinen neuen Arbeitgeber hat, eine selbstĂ€ndige ErwerbstĂ€tigkeit aufnimmt oder die Schweiz endgĂŒltig verlĂ€sst, ferner wenn der AHV-beitragspflichtige Lohn unter dem BVG-Mindestjahreslohn liegt und nicht versichert ist. Wird in der neuen Vorsorgeeinrichtung nicht die gesamte mitgebrachte Austrittsleistung zum Einkauf des Versicherten in die vollen reglementarischen Leistungen benötigt, kann die Differenz ebenfalls auf eine FreizĂŒgigkeitseinrichtung ĂŒbertragen werden.â
Isnât that what Iâm talking about?
Itâs isnât.
Volle reglementarische Leistungen = obligatorisch + ĂŒberobligatorisch.
âŠunless, of course, a pension fund only provides the absolute âBVGâ minimum mandated by law in their plan. Yet most pension fund plans go (often âwayâ) above that, also covering some non-mandatory benefits and/or insuring higher wages as well. And so will most users of this forum with their insured salaries and/or pension fund plans.
âVolle reglementarische Leistungenâ means the maximum defined by a pension fundâs insurance plan - not only the âBVG-Obligatoriumâ minimum defined by law.
