A vested benefit foundation is an institution which manages and invests vested termination benefits. Its purpose in the area of occupational retirement, survivors' and disability benefits is to hold the account-holder's pension assets enabling them to maintain their mandatory and extra-mandatory benefits coverage.
Vested benefit accounts cater to the second pillar of the Swiss BVG/LPP social security system. If an employee leaves a company for whatever reason without joining a new employer, the savings held with the pension fund are transferred to a vested benefit account. This serves as a parking lot, where a person's retirement savings capital can be held until they join a new employer.
Apart from the conventional vested benefit accounts, most providers offer securities solutions. Advantage: the return is probably higher than on a conventional account solution. Disadvantage: risk of fluctuations in asset value.
The vested benefit can be split and transferred to no more than two vested benefit institutions. No more than one account may be held with any given institution.
At the death of the account-holder, a lump-sum death benefit is paid. The following persons qualify as beneficiaries, within the meaning of Article 15(1)(b) FZV/OLP, irrespective of inheritance law, in the following order: Surviving spouse or registered partner, children under 18 or until they finish studying or training (but not beyond their 25th birthday), foster children who were dependent upon the deceased if they were under 18 or still studying or in training at his death (but not beyond their 25th birthday). Failing them: Natural persons who were substantially dependent on the account-holder for maintenance, or the person who shared a common life with the account-holder for an uninterrupted period of at least five years immediately prior to the account-holder's death, or who must support one or more of their common children. Failing them: Children who are of age and are no longer at school or in training; Children who have turned 25 (who are over 25). Failing them: the parents; failing them: brothers and sisters Failing them: other legal heirs, excluding public bodies.
| Vested benefits are blocked on the account until normal retirement. However, in a few exceptional cases, disbursement is possible earlier: - up to five years before normal retirement age - when a full disability pension is granted - on becoming gainfully self-employed - if the vested termination benefit is less than the account-holder’s personal annual contribution - on leaving Switzerland permanently in accordance with the Act on Vesting in Pension Plans (LFLP/FZG) - to acquire ownership of a residential property for own use. -withdrawals in connection with the encouragement of home ownership |
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The following funds can be paid in to a vested benefit account: - pension assets held with a pension fund when you leave - vested termination benefits from other vested benefit institutions; - repayment of withdrawals under the encouragement of homeownership scheme from occupational pension provision. - any pension-sharing settlements received following a divorce or the court dissolution of a registered partnership |
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A vested benefit account may be necessary for different reasons: |
An account-holder may, by written notice to the Foundation, specify the proportional distribution among the entitled persons within the individual classes of beneficiary.
Moreover, the account-holder may enlarge the circle of beneficiaries under point 1 by adding beneficiaries from point 2, and the circle of beneficiaries under point 3 by adding beneficiaries from points 4 and 5, or change the order of beneficiaries under points 3 to 5. (Link)
On leaving an employer, employees are responsible for arranging their own vested benefit account. If they do not do so within a certain period of time, their retirement savings capital is transferred to the Substitute Occupational Benefit Institution. You can open a vested benefit account with us directly online or, if you need further guidance, contact us for an appointment first.
Owing to price fluctuations, the actual weightings of the securities in the portfolio can deviate from the target weightings indicated in the prescribed investment strategy. If the weighting of an asset class (cash, receivables, equities, real estate, alternative investments) deviates from the target weighting by more than three percentage points, we rebalance the entire portfolio. Investments are bought and sold to restore the target weightings of the individual securities. This procedure is called rebalancing and is carried out at least once a month. No transaction fees are charged for rebalancing.
We attach the utmost importance to the security of the pension assets entrusted to us. Savings deposits are held with selected banks in accordance with statutory requirements and strict guidelines. We ensure broad diversification by distributing pension assets over several banks. This significantly reduces the risk of default or loss for individual account-holders.
The third pillar is designed for saving capital. It is subdivided into tied savings (pillar 3a) and free savings (pillar 3b). The state encourages private retirement savings and therefore grants tax benefits and privileges on pillar 3a holdings. In return, the retirement savings capital remains tied for pension provision and is subject to statutory limitations. There are no such limitations for pillar 3b savings, nor are there any tax advantages.
To open a pillar 3a account, you must be over 18, live in Switzerland (this includes cross-border workers) and earn an AHV/AVS contributory income. We offer securities investments from the first franc.
You can save for retirement with a pillar 3a retirement savings account. You can pay a certain amount each year into such an account which is interest-bearing. Alternatively, your savings capital can be invested into a pillar 3a equities portfolio. Investing in equities enables you to benefit from the development of the financial markets and generally produces better returns. It does involve higher risk, however.
No. The state leaves it to its citizens to decide whether to set aside additional private retirement savings. Third-pillar retirement savings plans enable you to preserve your customary standard of living after you retire.
Yes, the state encourages the creation of capital by granting tax advantages. But private retirement saving plans can also serve as death and disability coverage. The longer you contribute to your third pillar, the more capital you save, thanks also to the compound interest effect. The capital can be withdrawn later under certain conditions, for example to finance the purchase of an own home.
There is no minimum contribution. Every year, you can choose if and how much you wish to contribute.
There is no minimum duration. You can structure your contributions as you please and you can terminate your pillar 3a account at any time.
Owing to price fluctuations, the actual weightings of the securities in the portfolio can deviate from the target weightings indicated in the prescribed investment strategy. If the weighting of an asset class (cash, receivables, equities, real estate, alternative investments) deviates from the target weighting by more than three percentage points, we rebalance the entire portfolio. Investments are bought and sold to restore the target weightings of the individual securities. This procedure is called rebalancing and is carried out at least once a month. No transaction fees are charged for the rebalancing.
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The Federal Council sets the maximum contributions in each case: - As an employee with a pension fund - max CHF 7'258 (status CD_J_FAQ_Maximalbeitrag_Jahr) - As a self-employed person (without pension fund) - no more than 20% of your net income or max CHF 36'288 (status CD_J_FAQ_Maximalbeitrag_Jahr). |
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The fees correspond to the price of the following services and fees: - account opening - account-keeping - online portal (Liberty Connect) - Foundation fees - changes in strategy - buy and sell orders LibertyGreen has the advantage that it does not invest in funds. This means that there are no additional TER (Total Expense Ratio) costs. |
Third-party expenses, currency spreads and third-party duties (e.g. VAT, stamp duty, etc.).
Fees are calculated per year and charged monthly pro rata the assets invested in securities. Fees are transparently presented in the Fee Schedule.
You can open and maintain up to five accounts/deposits.
As a rule, the money can be withdrawn at the earliest 5 years before reaching normal (AHV/AVS) retirement age. That is currently the case at the age of 60.
We attach the utmost importance to the security of the pension assets entrusted to us. Savings deposits are held with selected banks in accordance with statutory requirements and strict guidelines. We ensure broad diversification by distributing pension assets over several banks. This significantly reduces the risk of default or loss for individual account-holders.
Yes, you must withdraw your 3rd pillar assets when you reach retirement age unless you continue to be gainfully employed. In that case, the money must be withdrawn no later than 5 years after reaching the AHV/AVS retirement age.
Contributions are deductible from income tax. When funds are withdrawn they are taxed separately from your other income at a reduced rate.
No. We use fractions of shares and only whole shares can be kept in your private assets. Fractions of shares cannot be transferred.
As a rule, once you reach the reference age, you are no longer allowed to contribute – unless of course you continue working. In that case, you can continue paying in until you stop being gainfully employed – but not longer than 5 years after reaching the reference age.
Prerequisites and eligibility
1. Who can pay into pillar 3a retroactively?
Only persons who earned income in Switzerland subject to OASI contributions in the year for which they want to make a payment and who are also employed in the year in which the back payment is made can make retroactive payments.
2. For which years are back payments possible?
It is only possible to make up contribution shortfalls from 2025. Gaps from previous years (before 2025) are excluded.
3. What about gap years without income?
If no income subject to OASI contributions was earned in the gap year (e.g. while studying without a part-time job, spending a year abroad without working), there can be no purchase.
4. Can self-employed persons also make back payments?
Yes, self-employed people without BVG affiliation and with a corresponding income may also make purchases – again only for years from 2025. However, only up to the small maximum amount (e.g. for 2025: CHF 7,258)
Sum and period for which purchases can be made
5. For how far back can retroactive payments be made?
Purchases can be made retroactively for up to ten years. This means that a purchase for 2025 will be permitted for the first time from 2026.
6. How is the gap calculated for a reference year?
With or without a pension fund: maximum amount e.g. for 2025: CHF 7,258 less savings contributions already made.
7. Can I fill several gap years retroactively at the same time?
Yes – the sum of the maximum possible purchases corresponds to the total of the gaps in the last up to ten years, which can all be paid up in one year.
8. Does the current annual contribution have to be paid first?
Yes, you can only make purchases for previous years once you have already paid in the maximum amount for the current calendar year.
Process and formalities
9. Where do I submit an application for a purchase?
The accountholder applies in writing to their pension fund for the purchase.
10. What documents are required?
We need the form “Application for retroactive pillar 3a purchases”. You can find this form in the Download Center on our homepage.
11. By when must the purchase be made?
The purchases can only be made once within a calendar year. There can be no distribution of the same gap over several years or within one year.
Tax and legal issues
12. Are purchases fully tax-deductible?
Yes. Back payments where all conditions have been met can be deducted from taxable income in addition to the ordinary contribution.
13. Do purchases have an impact on wealth tax?
No, tax-exempt pension assets in pillar 3a are not subject to wealth tax.
14. How are purchases recorded for tax purposes?
Back payments are deducted in the tax return in the same way as normal pillar 3a payments but must be listed separately from the current contribution.
15. Can I still make retroactive purchases after a withdrawal from a 3a account solution?
If pillar 3a funds have already been paid out in full or in part, purchases can be made to cover any gaps.
16. What happens if a withdrawal has already been made due to retirement?
If retirement benefits from pillar 3a have already been withdrawn in full or in part from pillar 3a, no further purchase can be made.
Special cases and restrictions
17. Can I make back payments for years without earned income?
No – back payments are only possible for years with income subject to OASI contributions in the contribution year. No purchases may be made for contribution years without earned income.
18. Are purchases possible in the event of divorce or early withdrawal for home ownership?
No – such back payments do not come under the law.
19. Are purchases possible to close gaps resulting from a divorce case or from an early withdrawal for home ownership?
No, such back payments do not come under the law.
20. Are there any transitional or special regulations for the years before 2025?
No – purchases only cover gaps from 2025. Contribution gaps before 2025 cannot be made up.
Yes. At any time. But the funds must again be placed on a 3rd pillar account.
You may make a withdrawal beforehand for the purchase of a residential property for your own use (this includes an interest in a cooperative residential association), for investments increasing the asset value of your home or to repay your mortgage. You may also withdraw your retirement savings if you emigrate or leave the country permanently or if you become self-employed. Under certain conditions, a withdrawal is also possible in case of a 70 % disability.
Yes. The amounts paid into a 3a pillar scheme are deductible from your income tax. The amounts do not have to be declared as assets, and any accrued interest, compound interest and capital gains are exempt from income and withholding tax. 3a retirement savings are only taxed when they are cashed in.
The employer’s contribution must be at least equal to the total contributions of all its employees. A higher employer share can only be set with the employer’s consent.
Part-time employees over the age of 17 whose AHV/AVS salary is higher than currently CHF 22'680 are subject to compulsory occupational benefits insurance. The admission criteria of the relevant employer’s pension plan are always decisive. A pension plan may provide for a lower entry threshold than CHF 22'680. (status 2025)
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Gainfully self-employeds do not have to join a pension fund. Second-pillar pension provision is not compulsory in this case. Self-employed persons may join a pension fund of their professional association or, if they have employees subject to compulsory BVG/LPP insurance, they may join the same pension fund as their employees. |
Contributions for retirement benefits are first payable when an employee turns 24. The pension plan in which an employee is insured is always decisive. The pension plan can provide that the retirement savings process only starts on the employee’s 24th birthday.
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Yes, early withdrawals of pension assets are possible in the following cases: - acquiring ownership of a residential property for own use. - becoming self-employed - transfer of vested termination benefit when employment is terminated - cash payment in the case of small amounts - early retirement - leaving Switzerland permanently for a country outside the EU/EFTA (if you leave for an EU/EFTA country, only the extra-mandatory retirement assets may be paid out under certain circumstances) |
Employees over the age of 17 whose AHV/AVS salary is higher than currently CHF 22'680 are subject to compulsory occupational benefits insurance. The admission criteria of the relevant employer’s pension plan is always decisive. A pension plan may provide for a lower entry threshold than CHF 22'680. (status 2025)
Employees who earn a salary over CHF 22'680 from one employer are insured for death and disability risks from 1 January following their 17th birthday and for retirement as well from 1 January following their 24th birthday under compulsory insurance. (status 2025)
The salary portion between the BVG/LPP co-ordination deduction of currently CHF CHF 26'460 and the maximum BVG/LPP salary of currently CHF 90'720 is called the co-ordinated BVG/LPP salary and is currently CHF 64'260. (status 2025)
The insured salary equals the AHV/AVS annual salary or, in the case of self-employed persons, the declared annual AHV/AVS income, minus the co-ordination amount, if applicable. A cap may be placed on the insured salary. or income. The insured salary or insured income, as the case may be, serves as the calculation basis for the insured benefits and contributions. The co-ordination deduction and the cap are stipulated in the benefits scheme.
Retirement credits are calculated annually as a percentage of the co-ordinated salary. The following rates currently apply: Age 25 to 34 = 7%, Age 35 to 44 = 10%, Age 45 to 54 = 15%, Age 55 to 65 = 18%
Inquiries to locate occupational benefit assets should be addressed to the 2nd Pillar Central Office, BVG/LPP Guarantee Fund, Administration, PO Box 1023, 3000 Bern 14. Complete information can be obtained from: https://sfbvg.ch/aufgaben/suche-vorgehen/suche-nach-guthaben-details
When they join a new pension fund, employees must indicate the bank particulars of the new pension fund to their former pension fund. The employee’s vested benefits will then be transferred from the former to the new pension fund.
As prescribed by law, members may in principle purchase regulatory benefits to enhance their benefits coverage or to attain full regulatory benefits. The maximum permissible pension assets are calculated in accordance with the purchase table of the relevant benefits scheme, taking into account a buy-in interest of maximum 2%. The maximum purchase amount is indicated in the pension statement. Employees can obtain a binding calculation from their pension fund.
Personal purchases improve an employee's retirement benefits. Depending on the exact definition in the pension plan, employees may in principle also improve their insured death and disability benefits through personal purchases. Moreover, personal purchases in occupational benefits are deductible from taxable income.
If personal purchases were made, the benefits deriving from those purchases may not be withdrawn as a lump sum in the following three years. If a member has made any withdrawals under the encouragement of home ownership scheme, no purchases may be made until such withdrawals have been repaid (Article 79b BVG/LPP). This restriction does not apply to purchases made in connection with a divorce or the dissolution by a court of a registered partnership. For persons arriving from abroad who have not previously belonged to an occupational benefits institution in Switzerland, the annual voluntary purchase during the first five years of membership in a Swiss occupational benefits institution cannot exceed 20 percent of the insured salary (or, in the case of self-employeds, the insured income) Once the five-year time limit has lapsed, the member may purchase the full regulatory benefits.
The abbreviations BVG and LPP stand for the second pillar of the social security system in Switzerland. They are the short forms of the German and French titles respectively of the Federal Act on Occupational Retirement, Survivors', and Disability Pension Plans. This Act regulates the minimum occupational benefit requirements for pension funds in Switzerland.
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The amount of the annual retirement pension corresponds to the available pension assets at the retirement date, multiplied by the conversion rate applicable at that time. A distinction is made here between an all-inclusive pension plan or a split pension model: 1) A pension plan is described as split when it is divided between two separate entities. In this case, the mandatory portion and the extra-mandatory portion are treated differently. In a split pension plan, the retirement pension is calculated based on the legal BVG/LPP pension assets which are converted applying the statutory conversion rate. The extra-mandatory pension assets, if any, are calculated and converted into a retirement pension applying the conversion rate set by the pension fund. 2) A comprehensive pension plan describes a plan where the retirement pension is calculated applying a single all-inclusive conversion rate to both the mandatory and the extra-mandatory portion of the retirement savings capital. The minimum legal pension under the BVG/LPP is in any event assured. Liberty BVG Collective Foundation applies all-inclusive conversion rates. The regulatory reference retirement age is currently 65 for men and 64 for women. Early retirement is possible from the age of 58, and retirement can be deferred until the age of 70 for men and 69 for women (the conversion rate is modified accordingly). As a member of Liberty BVG Collective Foundation, you will find your projected retirement pension on the personal insurance certificate we issue you every year. |
For self-employed persons, employees, managers, directors and members of executive committee of limited companies or limited liability companies with an annual AHV/AVS salary exceeding 450% of the maximum AHV/AVS retirement pension (CHF 136'080, status 2025).
From 450% of the max AHV/AVS retirement pension = CHF 136'080 (status 2025)
If a professional association offers a 1e pension solution, self-employed persons can choose to join such a non-mandatory pension solution. Their annual AHV/AVS salary must be at least 450% of the maximum AHV/AVS retirement pension. Self-employed persons do not have to have a basic BVG/LPP pension plan. But if their professional association offers a BVG/LPP basic plan, they may choose to join it.
The ‘Liberty Connect’ portal offers account-holders an overview of their portfolio, selected investment strategy, price performance and all transactions. All order slips can be viewed under e-documents in the menu.
No. Once self-employeds decide to join a 1e pension solution, they may only pay the smaller maximum amount into their pillar 3a each year.
The retirement benefits are equal to the actual value of the assets available on the account or securities deposit on the retirement date. Benefits are paid as a lump sum.
Any gaps in contributions may be compensated by voluntary contributions. Voluntary contributions are tax-deductible. To find out if you have a contribution gap, you can make a binding purchase calculation online in the online pension portal.
The 1e pension plan applies to a specific group of persons (all staff members, management staff, senior management, trade associations, etc.) who can select the investment strategy individually based on their personal risk profile. The insured persons can choose from a maximum of ten investment strategies per group of persons. At least one of those strategies must be low-risk.
The investment strategy in a 1e pension solution may be changed at any time. Selling or buying securities under a new investment strategy may take some time and this lag should be taken into account.
Depending on the choice of investment product and asset manager, the invested pension assets can be transferred to the personal securities deposit on retirement. In such cases, please inform your contact person in good time.
Startups are not listed on the stock exchange and involve a high level of risk: LibertyGreen only invests in highly capitalised companies.
Social criteria show how a company structures its relationships with its employees, suppliers, or customers, for example. The criteria are diversified, covering occupational safety, health protection, diversity, and social commitment for example. Governance criteria relate to management, executive compensation, auditing, internal controls and shareholder rights.
To avoid this, we have built into the portfolio a CO2 optimisation mechanism enabling us to exclude investments in companies which exceed a given CO2 emission cap per year. Nevertheless, a company could end up in the portfolio if it has top marks in other areas. The companies in the portfolio are monitored on a monthly basis and the selection process can be redefined as required in consultation with the Board of Trustees.
LibertyGreen invests directly in equities. This empowers us to exercise the relevant shareholder rights in the interest of the LibertyGreen community.
ESG is a framework which takes into account environment, social and corporate governance risks.
We stand for transparency: that is why we only use direct investments and do not invest in non-transparent and high-cost investment funds. As a result there are no fund fees.
Our investment cycle is monthly. This means that we invest or "rebalance" the portfolio once a month.
Owing to price fluctuations, the actual weightings of the securities in the portfolio can deviate from the target weightings indicated in the prescribed investment strategy. If the weighting of an asset class (cash, receivables, equities, real estate, alternative investments) deviates from the target weighting by more than three percentage points, we rebalance the entire portfolio. Investments are sold and bought to restore the target weightings of the individual securities. This process is called rebalancing and is carried out at least once a month. No transaction fees are charged for the rebalancing.
Yes, when the amounts are small as they are in the first payments especially, we may not be able to make exact allocations. The larger the invested capital, the more accurate the allocation.
You can open and maintain up to five separate portfolios.
No. We use fractions of shares and only whole shares can be kept in your private assets. Therefore, fractions of shares cannot be transferred.
Companies which produce more than a certain volume of CO2 emissions per year are excluded. We check every month that our criteria is respected.
ESG ratings are objective evaluations of a company’s commitment to sustainable business practices. Environmental, social and governance aspects are weighted differently depending which industry a company operates in.
We source the sustainability data from MSCI ESG Research. MSCI ESG is the largest global provider of sustainability analyses and ratings in the environmental, social and corporate governance fields.
Our portfolio only contains companies with an ESG rating of at least “A”. This ensures us the necessary flexibility to assemble a well-diversified portfolio. We check which companies show the best performance on a monthly basis and adapt the portfolio accordingly.
We use the sustainability calculator to compare the LibertyGreen portfolio with the MSCI World Index. The index published by MSCI covers some 1,600 companies from 23 industrialised countries. It is reputedly one of the most important global stock indices. Our calculator can compare greenhouse gas emissions, water volumes, waste tonnages and kilowatt hours per year and investment. It shows how important investing in sustainable companies is for the environment. The more capital flows into sustainable investments, the more likely the market will come into swing.
The more sustainably people invest, the greater the market pressure encouraging the green transformation as a whole.
Gain flexibility and savings potential with Lealta Vested Benefits Foundation by splitting your pension assets into two vested benefit accounts.
All the documents are available on the "Liberty Connect" online portal.
These can be appended to your tax return. The contribution amount must be entered in your tax return under deductions.
No.
Payments into the third pillar and voluntary second pillar contributions are tax-privileged. Both contributions are deductible from income tax. Moreover, interest and dividends are also exempt from taxation where the assets are invested in securities.
Since Liberty Pension is established in the Canton of Schwyz, payments abroad are taxed at the lowest withholding tax rate in Switzerland.
When your pension assets are disbursed by your pension fund, or your pillar 3a or vested benefit account is liquidated, the tax burden can vary considerably depending on where you live. The timing and the amount of the payment are decisive in this regard. In the second and third pillars, payment of the pension assets can be staggered over several tax periods to save on taxes.
Pensions are fully taxed as income. Retirement lump-sum capital is taxed differently from one canton to the other. Contact your tax office for information.
The app can be downloaded using the QR code on the landing page.
Yes, the app is available free of charge in the app store or Google store.
