Moving to EU/EFTA states

On June 1, 2007, the Agreement on the Free Movement of Persons between Switzerland and the European Community (EU/EFTA) entered into force. The agreement also impacts the possibility of cash payouts under occupational pension arrangements.

For changes of domicile up to May 31, 2007 the former regulations continue to apply. The date of the confirmation of departure from the last municipality of residence is decisive.

The mandatory retirement assets remain blocked

The limitation on cash payout affects only the portion of retirement assets that relates to mandatory occupational benefits. This means that extra-mandatory retirement capital can continue to be paid out.

On principle, the mandatory retirement assets remain in the tax-free vested benefits foundation. They may be taken as a lump-sum benefit on retirement in cash at the earliest five years before the individual in question reaches the statutory (AHV) final age.

Advance withdrawal under the promotion of home ownership scheme

A special feature of Swiss pension law is that advance withdrawal of retirement assets in order to purchase owner-occupied residential property also applies to mandatory retirement assets.

Thus, if the residential property in question is based in an EU or EFTA country of domicile, the insured person can withdraw the entire retirement assets under the promotion of home ownership scheme.