Capital Plan

Capital Plan buy-ins are possible up to age 62, as the savings capital in the Capital Plan is always paid out on retirement. It is not possible to have a pension paid out of the Capital Plan. Buy-ins increase the savings capital. The maximum possible buy-in amount is based on the average contributory salary in the last two years and the relevant percentage in the buy-in table in the Regulations. In case of overinsurance in the Pension Plan, meaning that the Pension Plan contains higher savings capital than that permitted according to the buy-in table, this surplus is taken into account when calculating the buy-in potential in the Capital Plan. This applies equally for vested benefits not paid in and the portion of the Pillar 3a account exceeding the amount permitted by the Federal Social Insurance Office (BSV) (Table maximum possible 3a pilar savings.pdf).

Tax aspects

As a rule, Pension Fund buy-ins can be deducted from taxable income, but this ultimately depends on the decision of the tax authorities. Following a buy-in, no lump-sum withdrawals may be made during a period of three years. If you fail to respect this required period, the tax authorities may retroactively deny the tax deductibility of your buy-ins. The buy-in amount contributed in the last three years may not be paid out as a lump sum.

 

Lump-sum payments include: 

  • early withdrawals for the purchase of residential property
  • voluntary lump-sum payments on retirement as well as statutory lump-sum payments
  • cash payments after taking up self-employment or after emigration

 

This does not affect: 

  • lump-sum payments in the event of disability or death

Important information

The following must also be taken into account for contributions:

 

  • Insureds who have made an early withdrawal from their pension fund assets to purchase property will no longer be able to make Pension Fund buy-ins until the withdrawal has been paid back in full.
  • Contributions are permissible only if you have no vested benefits held in vested benefits institutions.
  • With every contribution, the blocking period of three years for lump-sum payments begins anew.
  • If you have moved to Switzerland from abroad and were never previously insured by a Swiss pension fund, the maximum annual buy-in amount in the first five years after moving to Switzerland is 20% of your insured salary.
  • If you were previously self-employed and possess Pillar 3a funds, these will be taken into account when calculating your maximum possible buy-in potential.
  • In each calendar year, a maximum of three Pension Fund contributions may be made (Pension Plan, Capital Plan and ER account).
  • Insureds who have paid pension compensation following divorce may repurchase this amount in full or in part at any time.

The buy-in payments are lump-sum payments and attract interest at a rate set by the Pension Fund Board. At the same time, the payments for the Capital Plan are invested in the UBS AST2 EA – Kapital Plus 2019 fund, through the purchase of fund units. If when the savings capital becomes payable (upon retirement, death, disability or exit) the fund units are higher in value than the savings capital plus interest, you receive a share of the profits. The percentage share of profit you are entitled to is based on the number of full years you have been with the company.

All buy-ins have to be done over your personal bank account. Please ensure that following information is provided with the payment order:

  • First and last name        
  • Insurance number (you can find this number on your pension benefits statement under "personal details")

Bank details for buy-ins to the Capital Plan

Bank: UBS AG, 8098 Zurich
BC-Clearing: 230
PC-Konto: 80-2-2
S.W.I.F.T. -Address (BIC) UBSW CH ZH 80 A
IBAN CH14 0023 0230 3344 2304 Q

in favor of: Pensionskasse Schweizerische Rückversicherungs-Gesellschaft (Swiss Re), Zurich

Please ensure that following information is provided with the payment order:

  • First and last name        
  • Insurance number (you can find this number on your pension benefits statement under "personal details")