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Glossary

Tied Pension Provision

Tied Pension Provision refers to the tax-privileged third pillar of the Swiss pension system, in which contributions may be used exclusively for retirement, disability, or death benefit provision. The accumulated capital is tied until a pension event occurs; withdrawals are possible only in exceptional cases defined by law.

At a glance

  • Tied Pension Provision (Pillar 3a) is governed by the Ordinance on the Tax Deductibility of Contributions to Recognised Pension Schemes (BVV 3).
  • Contributions are deductible from taxable income up to the annual maximum set by the BSV (Federal Social Insurance Office), in accordance with DBG Art. 82.
  • Capital may be withdrawn at the earliest five years before AHV retirement age, except in cases such as an Advance Withdrawal for Home Ownership (WEF), emigration, or self-employment.

Frequently asked questions

With Tied Pension Provision (Pillar 3a), contributions are tax-deductible but the capital is earmarked and can only be withdrawn early in specific situations. Free pension provision (Pillar 3b) does not allow contribution deductions but offers full freedom of access to the accumulated assets.

Part of the topic

Pillar 3a

Sources: Bundesamt für Sozialversicherungen (BSV) · Eidg. Steuerverwaltung (ESTV) · Systematische Rechtssammlung (fedlex)

This entry is for general information purposes only and does not constitute investment, legal or tax advice. It is a simplified summary of the legal position and tax treatment.