Free transfer of vested benefits for older employees

The Federal Assembly, following the report from the Social Security and Public Health Commission of the National Council, amended the Law on the free transfer of Vested Benefits (LVB) in regard to older employees. 
 

Amendment of Article 2, paragraph 1a and 3 of the Act of December 17, 1993.
The insured person is entitled to a termination benefit (vesting) if he leaves the pension fund between the earliest age when the rules state he has the right to early retirement and the ordinary state retirement age, and if he continues to exercise a lucrative activity or claims unemployment insurance.

In their rules, the pension providers were able to force the insured person to take their pension when their working relationship was terminated in the period mentioned above. The retired insured persons and those taking early retirement were implicitly penalised by a reduction in pension benefits and those who continued to exercise a lucrative activity therefore had no right to a termination benefit.

The entry into force of this legal provision takes effect from 1 January 2010.



www.admin.ch/ch/f/ff/2009/3915.pdf