What do I have to bear in mind when buying into comPlan? What are the advantages? How much can I pay in? When is the right time to do it? How do I do it? Here are the most important things to consider for anyone wanting to increase their retirement benefits from comPlan in a tax-efficient way.
You can make purchases into comPlan up to the amount of the maximum benefits permitted by the fund rules. By doing this, you enhance your retirement benefits and reduce your income tax bill at the same time. While the law expressly provides for this attractive option, it does in return, and in order to prevent the non-payment of tax due, require transparent documentation of the pension assets already held.
Before making a purchase, Pillar 2 vested benefits accounts or policies and any Pillar 3 retirement savings accounts and policies must be disclosed and a number of other questions answered. You also have to complete our “declaration/confirmation regarding purchase into the pension fund” form. We cannot accept any purchase without this signed self-declaration, since the law requires the transparent documentation of pension assets already held. The only exceptions made relate to repurchases for the purpose of equalising pension provision on divorce and the repayment of advance withdrawals made for the purpose of facilitating home ownership.
Transfer all 2nd pillar pension assets from your former pension plans and vested benefits foundations to comPlan as required by law.
You can find out the amount of your purchasing potential from the general information in your statement of insurance or see it on comPlan Online. If you have made advance withdrawals for the purpose of facilitating home ownership, the law does not permit you to make further purchases. You have to pay back these advance withdrawals before being able to again make tax-deductible purchases.
Your purchasing potential will be reduced if the amount of your tied Pillar 3a savings exceeds the prescribed maximum for your year of birth. In addition, your annual purchase potential is limited to 20% of the insured annual salary if you have moved to Switzerland from abroad in the past five years and have never previously been insured in a Swiss pension scheme.
Our pension fund rules require that your purchases should have been credited to the comPlan account by 15 December in any financial year so that they can count for the current tax period. Transfers made after this date will be returned to your account. We will automatically send you a tax receipt for your tax return after your purchase. The general rule is that you can deduct such purchases from taxable income, but in the event of any doubt, the tax office's decision is final. If there are any uncertainties, then, we recommend that you discuss your situation directly with your tax authority or with a tax advisor.
You can generally deduct purchases into the pension fund from your taxable income. If in any doubt, check your personal situation with the tax authorities.
Make sure your purchase reaches the account of comPlan by 15 December at the latest. Transfers made after this date will be returned to your account.
During the three years following your purchase, you may not withdraw capital on retirement, make any advance withdrawal for the purpose of facilitating home ownership, or receive any termination benefit in cash. If you fail to observe this three-year blocking period, the tax authority will reverse the deduction of the total amount paid and demand income taxes in arrears.
You can ensure your own compliance with this period at the time you retire by not taking out a lump sum and converting all of your retirement savings into a lifelong retirement pension. By adopting this combination, you can get tax deductions on the money you pay into the pension fund while remaining within your purchasing potential until shortly before your retirement. If you’re planning to take out a lump sum in the next three years, consider choosing another savings option, as additional savings contributions under the Plus or Extra savings options are not subject to the three-year period.
When making a purchase, make sure you comply with the three-year blocking period.