Liberty Pensions and its consultants are receiving a growing number of inquiries concerning the proper procedure in terms of occupational benefits when moving from Liechtenstein to Switzerland, or vice versa, and any specificities to be taken into account.

Transfer of pension assets / new employment in Liechtenstein
If a person's employment in Switzerland is terminated and he takes up a new job in Liechtenstein, the pension assets accrued during his employment in Switzerland and held with the pension fund of his former employer or on a vested benefits account must be immediately transferred to the new employer's occupational benefits institution.

Termination benefits deriving from employment in Switzerland may not be transferred to a vested termination institution in Liechtenstein.

Cash disbursement
Pursuant to Article 5(1)(a) of the Federal Law on Vesting in Pension Plans (FZG/LFLP), members who can show that they are leaving Switzerland permanently may apply to cash in their vested termination benefits.
In the framework of the EFTA-Treaty signed with Liechtenstein and taking into account the 2nd addendum to the bilateral agreement between Switzerland and Liechtenstein on social security, the territory of Liechtenstein is equated with Switzerland in this regard. So persons moving from Switzerland to Liechtenstein do not qualify for a cash disbursement of their pension assets because they do not satisfy the condition of leaving Switzerland permanently.

Self-employment
Pursuant to Article 5(1)(b) FZG/LFLP, the option of cashing in one's vested termination benefits on self-employment is restricted to self-employment in Switzerland. Persons who become self-employed in Liechtenstein do not qualify and the option does not apply.

Withdrawals for the purchase of your own home
By analogy with the requirements to be satisfied for a withdrawal for the purchase of residential property for own use in Switzerland (house or apartment), a withdrawal of pension assets* may also be made to finance the purchase of a property in Liechtenstein.

*The term "pension assets" covers both 2nd pillar and 3rd pillar assets.