- With a local contract abroad, your AHV and pension fund contributions stop: your pension fund only grows by its interest.
- If your Swiss employer sends you, ask for a secondment before you leave: you stay insured.
- When you return, the pension fund gap can be bought back and every franc is deductible; AHV years abroad cannot.
What stops when you leave
With a local employment contract abroad, you leave AHV and your pension fund: no more contributions, neither from you nor from an employer. Your pension fund money does not disappear: it moves to a vested benefits account and waits for your return. But it stops receiving the contributions that made it grow.
| While you are away | Seconded by a Swiss employer | Local contract abroad |
|---|---|---|
| AHV | Your years keep counting | Missing years |
| Pension fund | Contributions continue, usually | Vested benefits account, no contributions |
| Pillar 3a | You can keep paying in | No more contributions |
The 3a requires AHV-liable income in Switzerland. During a secondment, staying in the pension fund depends on its rules: check with your employer.
Example: an insured salary of 100'000 francs often receives about 15'000 francs of savings contributions a year, employee and employer together. Three years abroad therefore leave a gap of about 45'000 francs in your pension fund. Your pension certificate gives your own figure, on the line showing the possible buy-in.
Before you leave: ask for a secondment
If your Swiss employer sends you and keeps paying you, it can second you: you stay insured in AHV, and usually in your pension fund. In the EU and EFTA, a secondment normally lasts up to 24 months; elsewhere, the length depends on the social security agreement with the country. The employer applies before you leave, through its compensation office.
The secondment, and continued contributions to your pension fund, are discussed as part of the expat package, not once you are there.
While you are away: invest your vested benefits
By default, a vested benefits account pays little: you can choose your foundation, and many offer an invested solution. Over several years, the difference runs into thousands of francs. You can have up to two vested benefits accounts: useful for withdrawing them later in different years, and paying less tax.
When you return: the gap becomes a deduction
Back in Switzerland, you can buy back the gap in your new pension fund, and every franc bought in is deducted from your taxable income. Because tax is progressive, a buy-in spread over two or three years often saves more than one large payment. The calculation for your canton and income is in the pension fund buy-in, with a calculator.
Two rules to know: a buy-in cannot come out as a lump sum for 3 years. And if you had never been insured in a Swiss pension fund before leaving, your buy-ins are capped at 20% of your insured salary per year for your first 5 years.
AHV: what cannot be caught up
Years worked abroad on a local contract cannot be bought back in AHV: each missing year costs about 2% of your pension, for life. The 5-year catch-up only applies to years when you were already insured in Switzerland. In the EU or in an agreement country, those years count towards a pension from that country. Outside the EU and EFTA, voluntary AHV lets you keep contributing from abroad, under conditions: decide before you leave.
Before you leave and when you return, ask for a free extract of your AHV account: details in the AHV pension.
Going further
Never leave your assets without an address. If you leave a job without saying where to transfer your pension money, your fund sends it to the Substitute Occupational Benefit Institution. It is still yours, but you have to find it: the Central Office for Pension Fund Assets searches with your AHV number.
A buy-in pays more when your income is high. Returning to a better-paid role, or a bonus year, is the best time to buy in: every franc is deducted in your most heavily taxed bracket.
Might you not come back? What happens to your 3a and pension fund if the move becomes permanent is in leaving Switzerland.
Lump sum or pension?With your pension fund capital, compare both options at retirement.
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Frequently asked questions
What happens to my pension fund if I go to work abroad?
Without a secondment, it is moved to a vested benefits account. It no longer receives contributions, only interest or the return of the solution you choose. It stays in your name.
What is a secondment?
Your Swiss employer sends you abroad for a limited period and keeps paying you: you stay insured in AHV, and usually in your pension fund. In the EU and EFTA, it normally lasts up to 24 months; elsewhere, the length depends on the social security agreement.
Can I catch up my AHV years spent abroad?
No. The 5-year catch-up only applies to years when you were already insured in Switzerland. Years worked in the EU or in an agreement country count towards a pension from that country. Outside the EU and EFTA, voluntary AHV lets you keep contributing, under conditions.
How do I know whether I have a gap in my pension fund?
On your pension certificate, on the line showing the possible buy-in. If it is above zero, you can buy in, and every franc bought in is deductible.
How many vested benefits accounts can I have?
Two at most. That helps you withdraw them later in different years, and pay less tax on withdrawal.
Can a vested benefits account get lost?
No, it stays in your name. If you do not say where to transfer your assets, your fund sends them to the Substitute Occupational Benefit Institution after 2 years at the latest. The Central Office for Pension Fund Assets helps you find it with your AHV number.
Sources: FZG / LFLP art. 4 (vested benefits and Substitute Occupational Benefit Institution) ; FZV / OLP art. 12 (two vested benefits accounts at most) ; BVV 2 / OPP 2 art. 60b (buy-ins for people arriving from abroad) ; BVG / LPP art. 79b (buy-ins and the 3-year period) ; AHVG / LAVS art. 1a and 2 (compulsory and voluntary insurance) ; Regulation (EC) 883/2004 art. 12 (secondment within the EU) ; Central Compensation Office, secondment and voluntary AHV ; Central Office for Pension Fund Assets.