Early Withdrawal

What could the consequences of early withdrawal be for me?
As a consequence of an early withdrawal, your pension benefits on retirement and in the event of disability or death will be reduced in accordance with the regulations and technical basis of our Fund.

To whom will the Pension Fund pay the money being withdrawn early?
The Pension Fund will pay the money being withdrawn early at your request directly to the creditor upon production of the necessary documents.

"Creditor" in this case means the seller, mortgage lender, builder, etc. The Swiss Federal Tax Administration will also be notified of the payment of the money within 30 days.

What are the timescales for early withdrawal?
The Pension Fund must pay your creditor the money being withdrawn early within six months of receiving your request and the necessary documents. You can request early withdrawal every five years up to 3 months before your chosen retirement date. If you have not chosen a specific retirement date, you can request early withdrawal up to 3 months before the normal statutory retirement age.

What are the minimum and maximum amounts that I can withdraw early?
Minimum amount
The minimum amount for early withdrawal is CHF 20,000.00. This minimum amount does not apply when purchasing share certificates in cooperative housing associations or other similar investments or for claims in relation to vested benefits schemes.

Maximum amount
Up until the age of 50, the maximum amount you can withdraw early is equal to your current termination benefit. From 50 onwards, the maximum amount you can withdraw early is equal to your termination benefit at the age of 50 or half of your current termination benefit, whichever is higher.

How can I protect myself against the reduced benefits resulting from early termination?
Early withdrawal results in your pension benefits being reduced. Any shortfall in risk protection in the event of disability or death can be made up by taking out additional insurance offered by the Galenica Pension Fund.
You alone must bear the costs of any additional insurance policies.

When must I and when can I repay the Pension Fund?
In certain cases, the early withdrawal must be repaid. However, voluntary repayment is also possible.

Mandatory repayment
The withdrawn amount must be repaid if the residential property is sold or let to third parties, or in the event of the participant's death, in the event that no pension benefits are due.

Voluntary repayments
In principle, you can repay the withdrawn amount at any time. However, the minimum repayment is CHF 20,000.00. If the remaining balance to be repaid is less than this amount, the balance must be repaid with a single payment. Repayment is permitted until:

  • three years before you are able to claim retirement benefits
  • a different pension claim arises (disability or death)
  • cash payment of the termination benefit

How is the early withdrawal taxed?
The early withdrawal is taxed as a lump-sum payment from a pension fund at the time that the withdrawal is made. It is normally taxed separately from normal income by the cantonal tax authorities. The tax cannot be paid using a portion of the early withdrawal.

Contact

Loredana Gallo-Rausa

Loredana Gallo-Rausa

Administrator for: responsable for all divisions exept HCI Solutions AG


Galenica Pension Fund

Untermattweg 8
Postfach
CH-3027 Bern

Phone:
+41 58 852 87 05
Fax:
+41 58 852 87 01

Contact

Regula Schlachter

Regula Schlachter

Deputy Manager Responsable for HCI Solutions AG and all questions about retirement, disability and death


Galenica Pension Fund

Untermattweg 8
P.O. Box
CH-3027 Bern

Phone:
+41 58 852 87 03
Fax:
+41 58 852 87 01

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