Pay out of the capital

If you leave permanently for another country, except for the EU and EFTA Member States,  you may ask for all or part of the 2nd pillar capital to be paid out in cash. You are advised to seek information about the conditions from your occupational benefit scheme at the earliest opportunity. The occupational benefit scheme may withhold payment of the 2nd pillar capital if, at the time when you made the application, you have already reached the age at which your occupational benefit scheme makes provision for early retirement. In that case you will receive a 2nd pillar pension.


If the 2nd pillar capital is paid out, you are advised to take an insurance policy for the disability and death risks.


Specific rules in the event of emigration to an EU or EFTA Member State

The agreement on the freedom of movement of persons signed with the EU and EFTA countries also brought changes applicable to the 2nd pillar, notably in respect of the cash payment of the 2nd pillar benefits.


In principle it is no longer possible to obtain cash payment of the 2nd pillar capital in the following states if compulsory insurance is held in any one of them for the risks of retirement, disability and death: Austria, Belgium, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Portugal, Poland, Slovakia, Slovenia, Spain, Sweden, United Kingdom, Iceland, Norway, Bulgary and Romania. In the event of permanent departure for Liechtenstein, cash payment was already prohibited previously.


This restriction applies, in particular, to persons who emigrate to one of these countries at a time when they are still in active employment and are holders of compulsory insurance against the risks of retirement, disability and death in their country of residence. However, there is one exception: a self-employed person will be authorised to withdraw his or her 2nd pillar capital to take up a self-employed activity if the legislation of the country of residence does not stipulate compulsory insurance for the above-mentioned risks in the case of self-employed persons.


On the other hand, persons who, on reaching retirement age, permanently leave Switzerland for one of the countries listed above may, even after 1 June 2007, withdraw their 2nd pillar capital.


Similarly it remains possible to use the 2nd pillar to finance, build or refurbish the main place of residence or to pay off a mortgage even if the property concerned is situated in one of the countries referred to above.


Finally, cash payment of the over-compulsory component of the 2nd pillar remains possible.