SwissCommunity What happens to my occupational benefit plan when I move abroad? Question: Relatives have asked me for tips on moving abroad. They want to know what happens to the money accumulated in their pension fund (Pillar 2), but I am unable to give them a satisfactory answer. What are the options? Answer: The first option is to leave your occupational pension savings in Switzerland and put them in a vested benefits account or a vested benefits policy, for example. Alternatively, you can ask for the money to be paid out to you. However, this is only possible if you leave Switzerland for good. The pension scheme into which your money was paid will check whether this is indeed the case. If you emigrate to a country outside the EU/EFTA area, you are entitled to have your assets paid out to you in full. On the other hand, a crucial restriction applies if you move to an EU/EFTA member state: the statutory minimum amount, i.e. the ‘mandatory portion’ of your pension fund assets, cannot be withdrawn and will instead remain in a blocked vested benefits account or vested benefits policy in Switzerland until you reach the age of 60, five years before you reach the statutory retirement age. Only the ‘non-mandatory portion’, i.e. the money saved over and above the minimum amount, will be paid out. You can also apply to use your Pillar 2 assets in full to help buy your own home abroad, provided the property in question is to be your primary residence and not a second or holiday home. You can remain in your Swiss occupational benefit plan, under certain conditions. Doing so also involves making continued contributions to the old-age and survivors’ insurance (OASI) and disability insurance (DI) scheme on a mandatory or voluntary basis. Therefore, continuing in the compulsory OASI and DI scheme allows you to remain with your occupational benefit plan on a mandatory basis, e.g. if you continue to work for a Swiss employer abroad. Paying into the OASI/DI scheme on a voluntary basis is only possible if you emigrate to a country outside the EU/EFTA area. Provided you fulfil all the prerequisites, you can also make voluntary contributions to Pillar 2 – either through your most recent pension scheme in Switzerland or through the Substitute Occupational Benefit Institution. But it is important to check whether the rules of your pension scheme allow this. Another decisive factor is whether Switzerland has concluded a social security agreement with your country of domicile, whereby you may be subject to the rules on social security in the country of employment. Therefore, the option you choose will always depend on your individual circumstances. For further information, please refer to the notes on occupational pension provision that have been published by the Federal Social Insurance Office (see link below). STEPHANIE LEBER, OSA LEGAL DEPARTMENT Language skills open doors Understanding and speaking several languages is not only a personal enrichment, but also helps with education or training and later when looking for a job. Among the many inquiries from all over the world that educationsuisse staff answer every day, one question comes up again and again: Can I study at university or do a training programme in Switzerland without knowing a national language? The answer is obvious: a good knowledge of the language of instruction is generally required and this varies depending on the language region: German, French or Italian. Universities, the ETH and universities of applied sciences usually require very good language skills (C1) in the language of instruction. There are only a few bachelor’s degree programmes, the three-year basic course, purely in English. On the other hand, more master’s programmes are offered in English. The level of language skills required for a three- or four-year vocational training programme that combines theory and practice is lower. Depending on the chosen profession, an intermediate language level (B1 - B2) is demanded. Language competence is assessed worldwide according to the Common European Framework of Reference for Languages (CEFR). This assessment scale comprises six levels from A1 to C2 (basic knowledge to native speaker level): Level C1 means very good knowledge of both text comprehension and the use of the language. Level B corresponds to an intermediate level, i.e. understanding the content of longer texts and speaking independently. Level A means low proficiency with elementary use of the language. How do you learn a language? As early as possible, playing, during school, lifelong. (Online) courses, language apps, books, podcasts, and films can help. Regular practice, speaking and immersing yourself in the language are important. A language study trip can be helpful but is also associated with costs. We recommend acquiring good language skills and the corresponding recognised certificates in your country of residence. If you have any questions on the subject of education in Switzerland, please contact us! RUTH VON GUNTEN, EDUCATIONSUISSE educationsuisse, education in Switzerland, Alpenstrasse 26, 3006 Berne, Switzerland Tel. +41 31 356 61 04; info@educationsuisse.ch; educationsuisse.ch www.revue.link/bsv164 You can use your Pillar 2 assets to help buy your own home abroad, provided the property in question is to be your primary residence and not a second or holiday home. Photo: iStockphoto 30 Swiss Review / October 2024 / No.5
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