The 2nd pillar for cross-border commuters and expats
Anyone employed in Switzerland, cross-border commuters included, is a member of their employer’s pension fund. When you leave a job without starting another in Switzerland, your savings go into a vested benefits account. They stay in Switzerland, in your name, even after you stop working there.
Why pension assets get lost after leaving
- Several employers in a row, so several pension funds.
- Letters sent to an old address, or never received.
- A new job abroad, after which Switzerland is soon forgotten.
Can I withdraw my 2nd pillar when I leave Switzerland?
It depends on where you are insured next. If you are compulsorily insured in an EU or EFTA country, the mandatory part of your savings usually stays in a vested benefits account until retirement, while the extra-mandatory part can in principle be paid out. In other countries, different rules may apply. Your pension fund or foundation will confirm what applies to you.
How we help
- A search for all your assets with the Central Office 2nd Pillar, from abroad, by phone, by email or on request of a call-back, without having to travel.
- Statements from each institution, sent on to you by us.
- If you wish, consolidation into a single vested benefits account with Liberty Vested Benefits Foundation.
How much does it cost?
The search for your assets is free and without obligation.
How we are paid. Prévancia is a business partner of Liberty Vested Benefits Foundation. If you decide to consolidate your assets there, Liberty pays Prévancia a referral fee of around 3% of each amount transferred. Prévancia is therefore not independent of this partner: you remain free to compare other solutions.
On this page we explain how the Swiss 2nd pillar works for cross-border commuters and expats, and what happens to your savings when you change jobs or leave Switzerland.
What does the Swiss occupational pension mean for you?
The Federal Act on Occupational Retirement, Survivors’ and Disability Pension Plans (BVG/LPP) governs the 2nd pillar of the Swiss pension system, which supplements the 1st pillar (AHV).
For cross-border commuters, the occupational pension works in the same way as for Swiss residents: each month part of the salary is deducted (employer and employee) and paid into a pension institution.
💡 Note: the occupational pension does not only cover old age, but also the risks of disability and death.
How does it work for a cross-border commuter?
Cross-border commuters are insured like all employees in Switzerland as soon as their annual salary exceeds the statutory entry threshold. Contributions are split as follows:
- Employee share: deducted directly from gross salary
- Employer share: paid by the company
- Pension assets: managed by the pension institution, with investment strategies that vary from one institution to another
When you leave your job or change employer, your pension assets are transferred to the new pension fund or to a vested benefits account.
📌 Find out more about opening a vested benefits account
Why does the 2nd pillar matter?
For cross-border commuters and expats, the 2nd pillar is an important part of retirement provision. Depending on your situation, the savings can be used:
- Retirement: as a pension or as a lump sum, according to the institution’s regulations
- Leaving Switzerland: withdrawal possible depending on the country where you are insured next
- Home ownership: part can be withdrawn to finance an owner-occupied home
What happens when you leave Switzerland or retire?
When you leave Switzerland or retire, two forms are possible depending on your situation:
- Pension: a regular payment, usually monthly
- Lump sum: a one-off payment of the savings, where the law and the regulations allow it
An important decision, to be weighed according to your age, family situation, goals and place of residence. For tax questions, contact your tax authority or a tax adviser.
Special cases: a change of status or moving back home
If you move back to your home country without a Swiss job, or your status changes (for example, you become self-employed), your pension assets are transferred to a vested benefits account.
This account can be managed according to different strategies (cautious, dynamic) and lets you keep control of your retirement savings without withdrawing them straight away.
How Prévancia supports you
At Prévancia, we support cross-border commuters and expats at every step concerning their 2nd pillar:
✅ A search for your assets with the Central Office 2nd Pillar ✅ Statements from each institution, sent on to you by us ✅ If you wish, consolidation with Liberty Vested Benefits Foundation, our partner
In short: your Swiss 2nd pillar after leaving
| Topic | Explanation |
|---|---|
| Retirement savings | A lump sum or a pension to supplement your income |
| Flexibility | Capital available for an owner-occupied home |
| Choice | Vested benefits account, choice of investment strategy |
| Clear rules on transfer | Regulated payout in the event of death or a change of situation |