Pillar 3a – restricted pension plans
Pillar 3a is a tax-privileged pension provision. Contributions may be deducted from a taxable income up to a maximum sum. There is a choice between pure saving solutions, or saving solutions combined with insurance coverage. The advantage of an insurance solution is that pension shortfalls can be covered in the event of disability or death. In the event of death, relatives receive a lump-sum death benefit pursuant to a legally prescribed order of beneficiaries.
Those in gainful employment who belong to a pension fund as well as the self-employed can pay into pillar 3a. Gainfully employed persons with the occupational retirement provision can pay in the maximum annual amount of CHF and deduct it from their taxable income.
Self-employed persons without the occupational retirement provision but with AHV income can pay in a maximum of CHF (up to a maximum of 20% of their earnings from gainful employment) and deduct it from their taxable income.
Amounts saved in 3a restricted pension plans can only be drawn prematurely under certain conditions, e.g. in order to purchase occupational retirement provision, when taking up self-employed work, when leaving Switzerland or to finance owner-occupied residential property.