In its recently published communication No 136, the Federal Social Insurance Office (BSV/OFAS) discussed the partial transfer of 3a retirement savings into the occupational benefits system.

If a person has a gap in his 2nd pillar coverage (pension fund), he may use his personal tied pension assets (pillar 3a) to compensate the shortfall. This transaction is neutral in terms of taxation provided he transfers all his 3a pension assets and then closes his retirement savings account in accordance with Article 3(2)(b) of the Ordinance on tax allowances on contributions to recognised forms of pensions (BVV3/OPP3).

For BSV/OFAS this is problematic. In order to avoid unequal treatments, a partial transfer is to be allowed if the shortfall in 2nd pillar coverage is fully compensated. Therefore, it is not permitted to partially compensate the 2nd pillar gap by a partial transfer of pillar 3a assets.

Before deciding on such a transfer, we recommend that you seek expert advice in reviewing your personal pension situation and the effects of such a transfer.