In the framework of the encouragement of home ownership scheme, pension assets may be withdrawn to finance the purchase of residential property for own use, or to finance the reduction or repayment of a mortgage loan on a member’s home.

But what if a member is good with his hands and contributes in kind to the building or renovation of his home?

The Federal Social Insurance Office (BSV/OFAS) recently examined the issue and decided that, in such cases, it would be justified to allow a withdrawal to finance the cost of materials incurred by the member over the threshold limit of CHF 20,000 referred to in Article 5(1) of the Ordinance on the Use of Pension Assets for the Encouragement of Home Ownership.

In this case, upon presentation of a written application accompanied by the requisite supporting documents, the occupational benefits institution must transfer the amount of the costs to the seller (of the materials), builder, lender or the beneficiaries in accordance with Article 1(1)(b) (see Article 6(29) of the Ordinance on the Encouragement of Home Ownership).

The above-mentioned legislation does not, however, permit withdrawals for the reimbursement of costs to be transferred to a member's own account. Moreover, members who carry out their own works cannot claim payment for any amounts invoiced in this respect.