How Pillar 2 moves with you when you change jobs
Your Pillar 2 balance is portable in Switzerland. When you leave an employer, your accumulated Pillar 2 funds transfer to your new employer's pension fund automatically upon joining. You complete a transfer request form provided by either the outgoing or incoming pension fund. The critical point is that you must inform both funds of the transfer. Failing to do so does not cause the money to disappear but it sits in a vested benefits account earning very little interest and not invested in growth assets.
Vested benefits accounts: the temporary home between jobs
If there is a gap between leaving one employer and starting the next, your Pillar 2 funds sit in a vested benefits account rather than an active pension fund. Some vested benefits providers offer investment options that maintain growth during the gap period, including VIAC and Finpension which extend their investment approach to vested benefits accounts. Default government vested benefits institutions offer minimal interest.
Buy-in strategy when switching employers
A job change that increases your salary also typically increases your buy-in capacity, because the maximum theoretical Pillar 2 balance benchmarks against your new, higher salary. Before making a large voluntary buy-in contribution to a pension fund you are about to leave, confirm the timing with your advisor. In general, it is more efficient to make buy-in contributions after joining the new fund.
Reviewing your new pension fund terms
Pension fund quality varies significantly between employers in Switzerland. The key variables to review when starting a new role are the conversion rate, the investment strategy, and the death and disability coverage terms. These details are contained in the pension fund regulations document your new employer is required to provide.