Repayment

Voluntary Repayment

You have the option of making voluntary repayments to close the pension gap created by the advance withdrawal. You may repay the entire advance withdrawal or make a partial repayment of at least CHF 10,000. These repayments are not considered to be a purchase of pension benefits for tax purposes and therefore are not deducted from your taxable income.

If you or your employer make payments into the Pension Fund, these funds will be used to repay the advance withdrawal.

Mandatory Repayment

If you cease to fulfill the conditions for the advance withdrawal, the amount withdrawn must be repaid to the Pension Fund. This applies in the following cases:

  • If you sell your residential property. This repayment obligation is limited to the outstanding total of advance withdrawals or to the proceeds of the sale, whichever is lower.
  • If you grant someone rights to your residential property that, in economic terms, are equivalent to a sale (e.g. rental, residential rights, right of usufruct).
  • If you die and no pension benefits are payable on your death under the BVG, such as surviving spouse's and children's pensions, the Pension Fund can call on your heirs to repay the advance withdrawal.

Exceptions to the Mandatory Repayment

The following restrictions apply to repayments:

  • The minimum repayment is CHF 10,000. If the advance withdrawal is lower, a one-time repayment must be made.
  • Repayment is possible at any time before retirement.
  • No further repayments can be made after disability or death has taken place.
  • Repayment is possible until cash payment of your vested benefits or until you leave the Pension Fund.