Vested benefits

You need a vested benefits solution when you leave a pension fund and do not immediately join a new pension institution. This may be the case, for example, during a break in employment, an extended career break, unemployment, a move to self-employment, divorce, a stay abroad or early retirement.

First open your vested benefits solution online through Tellco Vorsento. Then provide your former pension fund or vested benefits institution with the details of the Tellco Vested Benefits Foundation required for the transfer.

The assets are transferred directly between the pension institutions and are not paid into your private account. This ensures that the capital remains entirely within the occupational pension system.

If you do not inform your former pension fund of a new pension or vested benefits institution, your termination benefit will not be paid out to you. The pension fund transfers the assets to the Substitute Occupational Benefit Institution no earlier than six months and no later than two years after your departure.

By choosing a vested benefits solution at an early stage, you decide where and in what form your pension assets will be maintained.

An interest-bearing account solution is particularly suitable if stability is important to you, if the duration of the employment break is still uncertain or if you expect to need the assets again in the foreseeable future.

An investment solution may offer additional return opportunities over a longer investment horizon. With Tellco, you can choose the appropriate solution based on your objectives, risk tolerance and planned date of use.

Yes. You can hold up to two vested benefits accounts with Tellco. Splitting the assets may give you additional flexibility when planning a later withdrawal.

Depending on your personal circumstances and the applicable tax rules, staggered withdrawals across different tax years may help to optimise the tax burden. Whether and how a split is appropriate should ideally be assessed before the assets are transferred.

Once you are affiliated with a pension fund again, the vested benefits assets can generally be transferred to the new pension institution.

To arrange this, provide Tellco with the details of your new pension fund. The separately held assets will then be reintegrated into your active occupational pension provision.

If you become unemployed, the termination benefit from your former pension fund is transferred to a vested benefits institution or the Substitute Occupational Benefit Institution.

While receiving unemployment benefits, you are compulsorily insured against the risks of death and disability, but you do not automatically accumulate further retirement assets in the second pillar. Voluntary continuation of retirement provision may be considered under certain conditions.

Vested benefits assets are generally intended for retirement provision. An early withdrawal is only possible in situations provided for by law, for example when starting self-employment, purchasing an owner-occupied home or permanently leaving Switzerland.

Different requirements, deadlines and supporting documents apply depending on the reason for the withdrawal. It is therefore advisable to check the conditions and required documents at an early stage.

If you permanently leave Switzerland, a cash payment may generally be possible. However, if you move to an EU or EFTA country and remain subject to compulsory insurance there for old age, death and disability, the mandatory portion of your occupational pension assets may remain tied in Switzerland.

The extra-mandatory portion can be paid out if the legal requirements are met. As the rules depend on the destination country and your insurance situation, it is advisable to clarify the position at an early stage.

If you are resident in Switzerland, the payout is taxed separately from your other income as a lump-sum pension benefit. The amount of tax depends in particular on the payout amount and your place of residence.

If you are resident abroad, withholding tax is generally levied in Switzerland. The canton in which the vested benefits foundation is based is relevant. The Tellco Vested Benefits Foundation is based in the canton of Schwyz and therefore offers attractive conditions for many expats and emigrants. Any potential refund depends on the applicable double taxation agreement.

For the Tellco account solution, opening, maintaining and closing the account are free of charge under the currently applicable fee regulations. For investment solutions, the costs depend on the selected strategy and the investment products used.

Additional fees may apply for special services, such as an early withdrawal for residential property, a pledge or certain payments. The applicable Tellco Vested Benefits Foundation fee regulations provide the complete and binding overview.

If you no longer know which pension fund or vested benefits institution holds previous pension assets, you can submit a written enquiry to the 2nd Pillar Central Office of the Occupational Pension Guarantee Fund.

The Central Office compares your personal data with the reports submitted by pension institutions and informs you of any potential assets. You then claim any identified entitlement directly from the responsible pension or vested benefits institution.

Tellco Vorsento is Tellco’s digital pension platform. It allows you to open your vested benefits solution easily online and manage it centrally.

You can view your assets and investments at any time, access available documents digitally and, with an investment solution, adjust your investment strategy. This allows you to manage your vested benefits flexibly and with little administrative effort.

With Tellco, you can choose between an interest-bearing account solution and various investment solutions. This allows you to maintain your vested benefits assets in a way that suits your current circumstances, investment horizon and personal objectives.

Through Tellco Vorsento, you can view your assets and investments online, access documents digitally and adjust your strategy when needed. The independent Tellco Vested Benefits Foundation is supervised by the Central Switzerland Occupational Pension and Foundation Supervisory Authority.