In legal terms, pillar 3a is an extension of occupational pension provision (second pillar). In occupational pension provision, pension assets are held in pension funds*, which also have the legal form of a foundation. For this reason, when Pillar 3a was introduced in 1985, the Federal Council decided that payments into Pillar 3a must also be made into foundations. Specifically, these are pension foundations whose sole purpose is tax-privileged tied pension provision within the meaning of Article 82 of the Occupational Pensions Act (BVG).
* or insurance (but not relevant for this declaration)
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