Vested Benefits Foundation

If you terminate an existing employment relationship, you can transfer your pension fund assets to the finpension Vested Benefits Foundation. Once you have registered with us, we will provide you with an online prefilled vested benefits capital transfer form.

Do you already have a vested benefits account? Then you can switch to valuepension at any time. In this case, also register with valuepension and send the prefilled transfer form to your previous vested benefits institution.

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You can already choose an investment strategy when you register. You can then change the strategy at any time free of charge by selecting a different strategy or customizing the strategy.

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On the second bank working day of each week, we buy or sell the fund units required to implement the investment strategy you have chosen (note: the settlement of trades is delayed by two to three bank working days).

But before we trade, we check whether other clients within the clientele of the finpension Vested Benefits Foundation have orders to the contrary. After all, we only trade what is necessary on balance. The rest is charged internally at the currently valid price. Fund units are moved from client X, who wants to sell, to client Y, who wants to buy the same fund units. Of course, this internal clearing, called netting, is fully automated.

Through this internal netting, we can often settle purchases and sales at better prices than other providers can. In this way, we can reduce any spread costs between the buying and selling price.

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Due to price fluctuations, the effective weightings of the fund units can deviate from the specified target weightings of the investment strategy. If the weighting of a fund deviates from the target weighting by more than one percentage point, your entire portfolio will be rebalanced. Investments are sold and bought to restore the target weightings of the individual index funds.

This process is called rebalancing. It is carried out monthly on the first banking day of the month. There are no transaction fees involved.

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The fee is calculated on the average value of the pension fund assets at the end of the month. The fee is charged to the pension fund assets on a quarterly basis. In the event of admission or withdrawal, the costs will be charged pro-rata temporis on a monthly basis. Further information on fees can be found in the Fee Regulations for Investment Services.

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A withdrawal cannot be instructed electronically. It is always made using the form. Each reason for withdrawal requires different documents that the insured person must submit in addition to the withdrawal form. Generally, what is required is a copy of the ID and the signature of the registered (spouse) partner. The finpension Vested Benefits Foundation is entitled to request certification of the signatures without giving reasons.

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Account balances are privileged up to CHF 100’000 per pension fund member. In a bank bankruptcy they fall into the second rather than the third bankruptcy category.

Additionally, securities balances are even better off than account balances. Securities are not shown on the bank balance sheet. They are regulated as special assets and, unlike account balances, they do not fall into the bankruptcy assets of the bank. This means that your pension is as safe as possible with finpension Vested Benefits Foundation.

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finpension Vested Benefits Foundation accepts funds that originate from a vested benefits case. A vested benefits case exists if you leave a pension fund without immediately joining a new pension fund (temporarily without employment). As soon as such a vested benefits case arises, you can decide for yourself whether and how you want to invest the funds.

Examples of vested benefits cases:

  • You are temporarily unemployed: further education, childcare, time-out/sabbatical, unemployment.
  • You are moving abroad in your professional activity.
  • You do not have to transfer all your pension fund assets to the new pension fund.
  • Your salary has fallen below the entry threshold of the second pillar. You are no longer insured under the pension scheme.
  • You have gone into business for yourself and have not withdrawn your vested benefits capital.
  • You are divorced and receive your share, which you can transfer to a vested benefits institution.
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If you are taking a temporary absence, we recommend that you arrange for your previous pension fund to pay the termination benefit to two vested benefits institutions (Art. 12 para. 1 FZV). This increases your flexibility. You can transfer one part to a vested benefits account and invest the other part in securities.

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With finpension Vested Benefits Foundation, you can open two vested benefits relationships. However, the vested benefits capital must originate from two separate vested benefits cases.

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No, this is not possible. However, you have the option of paying up to 20% of your income, or a maximum into the tied form of the third pillar and thus making provisions. Analogous to our vested benefits foundation, we also offer a securities solution for the third pillar.

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Yes, in principle you must transfer all vested benefits back to the pension fund if you have a new employer and are insured with the pension fund. However, you are only obliged to contribute up to the maximum regulatory benefits.

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The vested benefits capital can be drawn at the earliest five years before and at the latest five years after the ordinary AHV retirement age. In addition, the credit balance can be withdrawn in advance as part of the advance withdrawal for homeownership, when taking up self-employment or when emigrating.

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Yes, this is possible within the framework of advance withdrawals for homeownership, self-employment or emigration.

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Yes, you can postpone the payment of vested benefits capital for a maximum of 5 years. You can have the account balanced at any time after reaching retirement age.

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The Foundation regulations determine who is entitled to benefits in the event of the death of the client (Foundation regulations, section 12).

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No, it is not possible to draw a pension from the vested benefits capital.

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No, vested benefits capitals are tax-free. You do not have to declare them as assets. Income from vested benefits is also not taxable. For this reason, it can be very advantageous to postpone the withdrawal of pension fund assets as long as possible.

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The index investments used by valuepension are subject to investor monitoring. Only second pillar pension funds can invest in these funds. Within the framework of the double taxation agreements concluded, the fund administration can guarantee that no withholding tax is deducted from foreign income (or that it is reclaimed directly within the fund). Further information on this topic can be found in our article «How to avoid withholding taxes?».

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Yes, a tax is payable on both the advance withdrawal and the final withdrawal on retirement. Capital withdrawals are taxed separately from other income and assets at a reduced rate. The cantons have different ways of calculating capital withdrawal tax. If you transfer your residence abroad before you receive your vested benefits capital, a withholding tax is levied at the registered office of the foundation. The registered office of valuepension is located in the Canton of Schwyz. The canton of Schwyz has the lowest withholding tax in Switzerland. The tax on advance withdrawals for owner-occupied residential property is refunded on repurchase into the restricted pension plan.

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Yes, as an alternative to an advance withdrawal for owner-occupied residential property, you can pledge the vested benefits capital. No taxes are payable on the pledge. The pension fund assets can also continue to benefit from the tax-free yield of the investment solution.

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