From 2026, it will be possible to make additional payments into pillar 3a. However, back payments will only be permitted for incomplete payments from 2025. Read this article to find out what other conditions must be met.

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Pillar 3a top-up payments will be possible from 2026

On 6 November 2024, the Federal Council approved the amendment to the Ordinance on Tax Deductibility of Contributions to Recognised Pension Plans (BVV 3) which will be brought into force on 1 January 2025. Nevertheless, subsequent payments into pillar 3a are only possible from 2026. This applies to missed or incomplete payments from 2025.

Subsequent payments into pillar 3a can also be deducted from taxable income.

Why does the amendment not allow retroactive purchases into pillar 3a for missed payments before 2025? This is probably due to the system for calculating possible retrospective purchases. The system is based on the fact that the information required to assess the admissibility of a retroactive purchase into pillar 3a is passed on when changing providers. Until now, the old provider did not have to pass on any information to the new provider. From 1 January 2025, they will.

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Conditions for an additional payment into the 3rd pillar

The other provisions are:

  • In order for a purchase potential to exist, there must have been earned income subject to AHV contributions in the year in question. In other words, you would have been allowed to pay into pillar 3a, but you did not, or at least not in full (see the year 2030 in the chart).
  • Subsequent payments are limited to the past ten years.
  • In the year in which you wish to make a subsequent payment, the ordinary maximum pillar 3a amount must be fully utilised.
  • Only one subsequent payment per gap year is possible. However, several gap years can be closed at once with one payment.
  • The amount of a subsequent purchase is limited to the maximum amount of the small pillar 3a. This means that the maximum amount that can be paid in one year is the ordinary maximum amount plus an additional maximum amount from the small pillar 3a. This also applies to self-employed persons who are not affiliated to a pension fund and can normally pay into the large pillar 3a. For them, the small maximum amount applies as a limit for subsequent payments.
  • As soon as a withdrawal is made from the third pillar as part of retirement, which is possible up to five years before reaching the statutory reference age, no further subsequent payments are permitted. Provided that no pension withdrawals have yet been made from pillar 3a, subsequent payments can be made up to five years after reaching the statutory reference age.

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Implementation of the motion “Enable purchase into pillar 3a” by Councillor of State Ettlin

Originally, the idea of enabling subsequent purchases for pillar 3a, as in the 2nd pillar, came from Councillor of State Erich Ettlin. He submitted a motion to this effect on 19 June 2019, which was later approved by both chambers. However, it would be wrong to refer to the amendment to the ordinance as “Lex Ettlin“. Ettlin made a different proposal that would have allowed for more purchasing potential.

Read more about pillar 3a