No more losses when changing jobs with 1e pension plans
Published: Wednesday, Oct 16th 2024, 10:20
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Employees with a 1e pension plan should no longer have to accept any losses if they change jobs. On Wednesday, the Federal Council submitted a corresponding amendment to the Vested Benefits Act for consultation.
With this draft, the government is implementing a motion by FDP member of the Council of States Josef Dittli (UR), which was referred by parliament. The amendment to the law is intended to prevent losses in the event of a job change or termination for insured persons with an annual salary of over CHF 132,300 who are insured in special pension funds with so-called 1e plans.
This is because if the pension fund of the new employer does not offer such a pension plan, employees previously had to liquidate the 1e investments immediately and transfer them to a regular BVG solution with the new employer. Any losses were borne by the insured person themselves.
Employees will now have the option of temporarily transferring their pension assets from the 1e plan to a vested benefits institution for two years, as the Federal Council wrote in a press release. There, the insured person could invest their assets in similar investments as before and thus recoup any losses.
To ensure that the assets are transferred to the pension fund of the new employer after two years, the exchange between the institutions is to be regulated. The pension funds must now actively search for the assets and request the transfer.
1e plans are pension plans in which insured persons can choose from a range of investment strategies. This offers great opportunities for higher interest rates, but also carries the risk of losses. According to the Federal Council, 44,000 insured persons had invested their assets in 27 pension funds in this way in 2022.
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