I am new here, I hope this question was not asked before. I am moving to a new company, and I already compiled all the forms related to moving the second pillar from the old company to the new. However, I am not sure about the pillar 1e. The new company doesn’t have a 1e program. So what should I do with my current 1e contributions? Are they moved automatically along with the second pillar? Even if they are managed by two different companies (Helvetia for second pillar, PensFlex + Vontobel for pillar 1e)?
It would be great to get more clarity on this topic if possible! If this question has been answered already in the past, sorry! I couldn’t find it.
It’s not moved automatically, but your current fund(s) will contact you, asking for details where to send it. Your current employer should inform them automatically for all exits.
If you move directly, that’s typically the new company’s pension fund. If you have a gap, it’ll be a vested benefit account. But you have to tell them, either way.
1e will be transferred just the same and end up in the pot as the rest. If your 1e is invested, you might want to consider moving it to a different strategy to avoid bad timing. But this could go both ways, of course.
Currently the way it works is like this: When you change employers and therefore move to a new pension fund, your existing pension fund must liquidate your 1e plan assets and transfer the Swiss franc value of the resulting benefits to your new pension fund. The (former) 1e benefits will then simply become part of your other extra-obligatory benefits (pillar 2b).
Obviously that arrangement is very disadvantageous because if your investments are in a slump at the time that you are forced to liquidate, you can lose a lot of money, since you cannot reinvest to enjoy the recovery.
There is a proposed change to the law governing vested benefits that would allow you to move benefits from a 1e plan to a vested benefit foundation and hold them there for up to 2 years before you have to move them to your new pension fund. That would enable you to reinvest the money and wait up to 2 years for the investments to recover before you have to liquidate them and move the vested benefits to your new pension fund.
But until that change takes effect, changing jobs brings a real risk of making a capital loss on 1e plan investments.
what happens if you get a job with lower pay e.g. you work 50% in the new job and your existing pillar 2 contributions exceed what you are allowed to put into the new pension fund? does the excess have to go into a VB account?
If your previous employer’s contributions and accrued benefits significantly exceed what can be insured under the new, lower salary, the new pension fund simply won’t accept the entire amount. The surplus is automatically transferred to a VB account.
Yes, that’s one case where you can officially and fully compliant split your money and keep some of it in VB outside the new regular pension fund (compared to doing that anyway, as discussed plentiful in other threads [and which the well-meant interim proposal for 1e accounts in its latest form wants to prevent] )
What do you mean by ‘that kind of employer’? There are many companies with EXEC level positions, I don’t think all of them have a 1e plan. Also, to my knowledge the public sector does not have 1e plans.
By reading and partipating to this forum, you confirm you have read and agree with the disclaimer presented on http://www.mustachianpost.com/
En lisant et participant à ce forum, tu confirmes avoir lu et être d'accord avec l'avis de dégagement de responsabilité présenté sur http://www.mustachianpost.com/fr/
Durch das Lesen und die Teilnahme an diesem Forum bestätigst du, dass du den auf http://www.mustachianpost.com/de/ dargestellten Haftungsausschluss gelesen hast und damit einverstanden bist.
[and which the well-meant interim proposal for 1e accounts in its latest form wants to prevent] )