Substitute Occupational Benefit Institution (BVG)

A person who leaves a pension fund without joining a new one tells the previous fund in which permitted form the pension cover is to be kept, for example as a vested benefits account or a vested benefits policy (Art. 4 para. 1 FZG). If no such instructions are given, the fund transfers the termination benefit with interest to the institution no earlier than six months and no later than two years after the vested benefits case (Art. 4 para. 2 FZG).

The BVG requires the institution to take in individuals for voluntary insurance (Art. 60 para. 2 lit. c BVG). Self-employed persons who cannot insure themselves with any pension institution have a right to be insured with it (Art. 44 para. 2 BVG). A further group consists of persons who work for several employers, are not compulsorily insured and earn a total annual salary above the entry threshold. Such persons can take out voluntary insurance with the institution. They can also do so with the pension institution to which one of their employers is affiliated, but only if that pension institution's regulations provide for this (Art. 46 para. 1 BVG). The rules on compulsory insurance apply by analogy to voluntary insurance (Art. 4 para. 2 BVG).

Yes, under the conditions that apply to any vested benefits account (Art. 60 para. 5 BVG). Old-age benefits may be paid out no earlier than five years before the reference age (Art. 16 para. 1 FZV). If the insured person receives a full disability pension from the federal disability insurance and the disability risk is not additionally insured, the old-age benefit is paid out early at their request (Art. 16 para. 2 FZV). Regardless of the reference age, a person can request a cash payment under Art. 5 FZG in three cases: permanently leaving Switzerland, taking up self-employment without compulsory occupational pension cover, and having a termination benefit that is lower than the person's own annual contribution (Art. 5 para. 1 FZG, applicable by analogy under Art. 14 FZV). A person who leaves Switzerland cannot have the compulsory part of the old-age balance paid out in cash (Art. 25f FZG) if they remain compulsorily insured against the risks of old age, death and disability in an EU member state, Iceland or Norway. The same applies to a person who lives in Liechtenstein. Married persons and persons in a registered partnership need the written consent of their spouse or partner (Art. 5 para. 2 FZG). Other withdrawal and payout cases are governed by separate provisions and are not covered here.