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Previous LPP status when start working for UN
Jul 31, 2022 @ 13:51

Hello,


Please, help if you experienced  a similar situation.


I worked for a Swiss company before and it's contributed toward my Swiss pension (LPP). I've left the company and join UN, which does not contribute to Swiss pension and is not a part of the Swiss pension scheme (I assume).


I've got a letter of termination from Baloise (I guess it's a pension provider) asking what to do with contributions from my previous employer - transfer to ne employer, pay in cash or freeze in the bank. They suggest that my option is to freeze in a bank, rather than get cash. 


Did anyone come across this situation and what was the outcome?


Thanks


Mikhail


 

The text you are quoting:

Hello,


Please, help if you experienced  a similar situation.


I worked for a Swiss company before and it's contributed toward my Swiss pension (LPP). I've left the company and join UN, which does not contribute to Swiss pension and is not a part of the Swiss pension scheme (I assume).


I've got a letter of termination from Baloise (I guess it's a pension provider) asking what to do with contributions from my previous employer - transfer to ne employer, pay in cash or freeze in the bank. They suggest that my option is to freeze in a bank, rather than get cash. 


Did anyone come across this situation and what was the outcome?


Thanks


Mikhail


 


Mikhail BJul 31, 2022 @ 13:51
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Re: Previous LPP status when start working for UN
Post 1
Aug 1, 2022 @ 10:46

Hi Mikhail,


Firstly ensure with your employer’s HR department that indeed you are no longer subject to the Swiss LPP.


If ths is the case, clarify with Baloise, if and how much return you can expect by leaving the pension savings with them. Then you can decide whether you’ll be able to manage the funds more efficiently.


Best regards,


Andre


[email protected]

The text you are quoting:

Hi Mikhail,


Firstly ensure with your employer’s HR department that indeed you are no longer subject to the Swiss LPP.


If ths is the case, clarify with Baloise, if and how much return you can expect by leaving the pension savings with them. Then you can decide whether you’ll be able to manage the funds more efficiently.


Best regards,


Andre


[email protected]


André Graf, Aug 1, 2022 @ 10:46
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Re: Previous LPP status when start working for UN
Post 2
Aug 1, 2022 @ 10:52

One more aspect to take into consideration is that if the funds are paid out they are subject to taxes, even though at a preferential rate.

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One more aspect to take into consideration is that if the funds are paid out they are subject to taxes, even though at a preferential rate.


André Graf, Aug 1, 2022 @ 10:52
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Re: Previous LPP status when start working for UN
Post 3
Aug 1, 2022 @ 16:08

Hi Andre,


Thanks a lot for your suggestions, I will aks them to clarify my options, but it looks like they neither allow me to keep the funds with them (probably a corporate scheme) nor to get the cash. They said that I have to open a special account in a bank, which will be frozen until I retire, and they will trunsfer the funds to it. This sounds strange to me, but I'll ask them again, I will also ask the bank - they must know something about this if banks are involved, I hope.


Thanks again


Mikhail

The text you are quoting:

Hi Andre,


Thanks a lot for your suggestions, I will aks them to clarify my options, but it looks like they neither allow me to keep the funds with them (probably a corporate scheme) nor to get the cash. They said that I have to open a special account in a bank, which will be frozen until I retire, and they will trunsfer the funds to it. This sounds strange to me, but I'll ask them again, I will also ask the bank - they must know something about this if banks are involved, I hope.


Thanks again


Mikhail


Mikhail B, Aug 1, 2022 @ 16:08
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Re: Previous LPP status when start working for UN
Post 4
Aug 2, 2022 @ 04:31

Hi Andre,

Thanks a lot for your suggestions, I will aks them to clarify my options, but it looks like they neither allow me to keep the funds with them (probably a corporate scheme) nor to get the cash. They said that I have to open a special account in a bank, which will be frozen until I retire, and they will trunsfer the funds to it. This sounds strange to me, but I'll ask them again, I will also ask the bank - they must know something about this if banks are involved, I hope.

Thanks again

Mikhail


Aug 1, 22 16:08

Something else that might have a bearing on your decision is the length of your present UN contract and whether it will be extended.

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Something else that might have a bearing on your decision is the length of your present UN contract and whether it will be extended.


Ritchie, Aug 2, 2022 @ 04:31
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Re: Previous LPP status when start working for UN
Post 5
Aug 4, 2022 @ 20:38

Hi Andre,

Thanks a lot for your suggestions, I will aks them to clarify my options, but it looks like they neither allow me to keep the funds with them (probably a corporate scheme) nor to get the cash. They said that I have to open a special account in a bank, which will be frozen until I retire, and they will trunsfer the funds to it. This sounds strange to me, but I'll ask them again, I will also ask the bank - they must know something about this if banks are involved, I hope.

Thanks again

Mikhail


Aug 1, 22 16:08

The frozen account is called a "libre passage", designed to allow you to move your pension funds to the pension fund of a new employer.


You can normally retrieve these funds if you definately leave CH. (Or use it to buy a house)


The pension funds normally give quite a low interest rate, because they have to be very careful.


However, I believe that you can ask to have different risk profiles for your libre-passage. Dependant on your age, you might want to have a riskier profile (and hopefully better interest) than someone appaching retirement.


BTW, I've been in the same situation as you, I decided to keep my LPP in the libre-passage.


Contact me by PM if you want a personal discussion.


 

The text you are quoting:

The frozen account is called a "libre passage", designed to allow you to move your pension funds to the pension fund of a new employer.


You can normally retrieve these funds if you definately leave CH. (Or use it to buy a house)


The pension funds normally give quite a low interest rate, because they have to be very careful.


However, I believe that you can ask to have different risk profiles for your libre-passage. Dependant on your age, you might want to have a riskier profile (and hopefully better interest) than someone appaching retirement.


BTW, I've been in the same situation as you, I decided to keep my LPP in the libre-passage.


Contact me by PM if you want a personal discussion.


 


tawb, Aug 4, 2022 @ 20:38
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Re: Previous LPP status when start working for UN
Post 6
Aug 5, 2022 @ 09:17

Thanks a lot Tawb for explaining clearly the purpose of the "libre passage" account. This was exactly the missing piece of the puzzle.

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Thanks a lot Tawb for explaining clearly the purpose of the "libre passage" account. This was exactly the missing piece of the puzzle.


Mikhail B, Aug 5, 2022 @ 09:17
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