2nd Pillar (BVG) Splitting


New member
Any hits on BVG (or 2nd pillar) splitting, while changing the job?

I've heard it makes sense to split into 2 (or more) vested or pension funds to let those parties live their own lives (and investment strategies). There is also a possibility to withdraw (conditions apply, as we know) money from those vested pension funds separately and during different years, reducing your (progressive) taxation.

Any negative sides of doing so?
That's a good question.

It definitely makes sense to try to have multiple second pillars. However, doing that while changing jobs is a grey area. In theory, you are supposed to bring back all your second pillar funds to the new employer when starting a new job. So this means that if you split into two vested benefits accounts when leaving your current employer, you are supposed to transfer both again to the new employer when you have both. I say it's a grey area because many people recommend that, and many people do that. In practice, it seems that this rule is not really enforced since the pension funds don't have a way to know how much you have in your pension fund before starting with this.

So, it's up to you if you want to do that.

P.S. I have moved that to Switzerland, we will figure out proper categories in time when we have more subjects.
Very interesting. So I am trying the splitting and I remember having a new employer - they (or their fund) didn't care if I had anything before, so they started from scratch. It took me some energy to take money from the previous fund (sure, they were not interested in giving $$ back as they were using them to leverage their positions).

What I have also learnt, at many of those companies like AXA Life Insurance 3a, for example, money is being managed by an external (mandate) Wealth Management company. So, often those insurance companies (you've spoken about this in your articles one and two) are not doing a good job at all.

I will inform how it goes with splitting.
Why did it take you energy to withdraw money? If you are no longer part of the pension scheme, they have no choice but to transfer the money out. That sounds alarming.

Yes, 3a life insurance assets are often delegated. But I am not sure this applies to the second pillar, although probably quite a few are also delegated.
"Why did it take you energy to withdraw money?" One of the three Pensionkasse (funds) wasn't too fast and it too almost 3 months to transfer the lost CHF 60K. While there were finding out - I have changed my current fund again. So, it look another month to coordinate 3 funds together.

I am sure I can sue them. But, we are in Switzerland )
Thanks for sharing.

I would not expect them to be very fast indeed. But 3 months is definitely more than I would expect. But I don't think you can do anything bout it. At least, everything is sorted out now.