Leaving Switzerland and Pension Question

Visas, Permits, Passports and Naturalization
1
Hello all,

I have been approached by my boss regarding where I would like to recieve my money when I leave Switzerland. I have left my job and will be finished my contract end of the month.

Can anyone tell me the name of the pension funds I will be getting back when I leave the country? I was told there was 3. One you get back right away, one you do not get back, and one you get back when you turn 65.

Also, any idea how long it takes to actually get your moola?

Is any of this correct?

THANKS!

2
It all depends where you will go from Switzerland. If you live in EU you will not be able to get the lump sum cash payout until you turn official pension age.

But you can have the lump sum - any taxes if you settle down away from the EU.

3
I am going to Canada.

4
I think Canada would be the same as the US so you have at least 2 options for the Company pension scheme I think its "pilar 2":

1. Take the cash with you, they will withhold between 3% to 9% (depends on the amount you withdrawl). The cash will be deposited to the bank account of your choice (probably even a foreign account if you want). Not sure when you get the cash but I would guess within a month of leaveing the company. With this option you need to be sure to report this income and obviously Canada will tax you, however, the tax witheld by Basel can be released back to you with the approval of your local tax authority in Canada (they need to sign some form approving the release of the withheld tax)

2. Roll the amount into another "vested pension" scheme account in Switzerland, most banks will offer this and you will continue to earn interest but obviously no more contributions are made. Once you turn retirement age you can begin to withdrawl.

I am leaving as well and at my company we have a pension department who I met with and they explained my options so I would also ask to speak with someone in HR or the pension and they can give you the forms etc.

For the "pilar 1" I think that is the AHV for a US person you have to leave it there until you reach retirement age and then they will pay you a monthly payment for it.

I dont have the pilar 3 so have no clue about that one but I would assume it is similar to the pilar 2 option 1 above or just leave it.

Hope this helps....its great to leave but the Swiss do make it tough with canceling everything!

5
I was under the impression from my boss (we dont have an HR department...just an accountant who I have never met) that the money could either go into my swiss account or my canadian bank account. I just have no idea what name the pension that you get before you leave is called.

How can I report it to the Canadian tax authorities if I am not going to be a Canadian resident in this year?

6
Hi, does anyone have specific information on the following: if you leave Ch going back to the US and have a pillar 3 retirement account. When you close this account and go back to the US, do you pay a tax withholding in CH? I understand the lumpsum retirement from your employer will be taxed at a rate 2-9%, just not sure about the 3rd pillar.

7

This is not quite true, below is an extract I got from my pensions advisor:

1) If you will leave Switzerland and take residence in a country of the EU region you can request for a cash payment for the extra-mandatory part of your termination benefit. The mandatory part has to be parked on a blocked Swiss bank account of your choice . If you are not sure to stay or come back to Switzerland in some years you may park the whole termination benefit.

8
Hi everyone

I have just moved to zurich and started working.

There are so many deductions each month off my salary it is hard to keep track.

The pension that gets deducted is roughly CHF 400 per month. I know this is not a large sum but would still like to know what this means at retirement age?

How long does one need to contribute? What does one get and at what age?

If I left the country after a year what would I be entitled to get back, if anything.....all the simple questions that just don't make sense to some of us.

Would be grateful for any information.

Thanx so much

9
In english and many other languages

Come back after reading for more questions if any

regards

http://www.bsv.admin.ch/themen/ueber...x.html?lang=en

10
Thanks !!!

11
Great link, thanks for the tip!

12
Hi... I am in a similar situation moving back to Canada. My boss in Switzerland gave me a form from the pension company itself in which I filled out with my Canadian bank info. I haven't received anything yet but I am expecting the full sum.

You can report as a "non resident" to CRA (tax man). The international tax department is quite helpful. I am moving back to Canada and I declared myself a resident again as of 2013. You just have to fill out a form telling your story.

13
Depending where you live, you can reduce the amount of tax you need to pay when emigrating by transferring your 2nd pillar account first to a low-tax Kanton and then transferring it out of Switzerland. There are probably a number of investment companies that do this, but a friend just used Liberty pensions and was satisfied with their service - more info at http://www.liberty-pension.ch/en/ves...moving-abroad/

14
You would try and avoid being taxed in Canada for sure and just pay the tax in Switzerland. You should really consult a Canadian accountant for if and how you can do this (avoid Canadian tax residency). If you are not going back to Canada in the year the pension payment is made I would think it`s not the third to do.

I believe you are referring to 2nd pillar pension.

15
If you move your 2nd pillar to the LPP, they will take off about 10% of your amount and are willing to pay the money into a Swiss bank account for you.

Other banks might not do this, and your Canadian taxes will be higher than 10% most certainly. It will take the LPP 6 weeks to give you your money.

You will need to go to a Canadian consulate to make an affidavit regarding your marital status or do it from Canada at a notary's.

16

Did you get a definitive answer? I'm also a Canadian leaving Switzerland and would like to know how to get the funds and if it has to be transferred to a RRSP in Canada or if it can simply be cash which is what I prefer.

17
You can have the vested benefit from your company pension plan transferred to a vested benefits account when you leave the company. You can open such an account in advance with any Swiss vested benefits foundation. If you leave Switzerland permanently and relocate to a non-EU country prior to retirement age, then you have the option of requesting the funds in the vested benefits account to be paid out in cash to a normal bank account. Withholding tax (Quellensteuer) will be deducted by the vested benefits foundation before the cash transfer is made. Since the withholding tax rates vary widely by canton, it would be to your advantage to open the vested benefits account with a foundation that is domiciled in a canton with a low withholding tax rate, e.g., Zug or Schwyz.