Promotion of home ownership
Promotion of home ownership: early withdrawal or pledge
Up to the age of 62, insured members can withdraw a sum or pledge part of their pension funds to purchase a home for their own use.
Insured members can withdraw pension funds early for the purchase or construction of a home for their own use in sole ownership, co-ownership or joint ownership with their spouse or a registered partner. The funds can only be claimed for one object at the same time. It is not permitted to use the funds for holiday or second homes or for the purchase of land with no intention of building.
With these funds, insured members may
- repay mortgages
- make investments to preserve or increase the value of a home
- acquire shares in a housing cooperative.
The early withdrawal is regarded as a lump-sum withdrawal and is taxable at a reduced rate when it is paid out. The relevant tax authority is also notified of the early withdrawal by Syngenta Pension Fund. For insured members who live abroad, withholding tax is calculated and deducted directly. When the sum withdrawn early is repaid, insured members resident and liable for tax in Switzerland can reclaim the tax paid in Switzerland within three years of the repayment.
The sum withdrawn early can be repaid at any time, and when it has been repaid in full, voluntary extra contributions to the Pension Fund are possible again.
How much capital can be used?
- Up to the age of 50: the current level of vested benefits (portable sum)
- From the age of 50: the level of vested benefits at age 50 or half the current level of vested benefits (if this is higher): minimum sum CHF 10 000
- Smaller sums are also permitted for shares in housing cooperatives
- Early withdrawals can be claimed every 5 years, but not after the age of 62.
What are the consequences of an early withdrawal?
An early withdrawal results first and foremost in a reduction of capital savings and secondly in a reduction of retirement savings. The retirement benefits are thus reduced by the sum withdrawn early, incl. the effective interest up to retirement. The spouse’s pension is reduced by 5 percent of the retirement savings withdrawn early. (A later repayment is reintegrated into the retirement savings and benefits are increased accordingly). An early retirement has no influence on the level of the temporary disability pension.
How is the purpose of the funds assured?
An early withdrawal is registered with the relevant land registry and a sale restriction notice added in the land registry. Any fees are charged to the insured member. Shares and similar participation certificates must be filed with the Pension Fund.
What needs to be borne in mind when repaying a sum that is withdrawn early?
The withdrawn sum must be repaid if
- the property is sold, unless the capital is reinvested in a home for use by the insured member within two years
- the property is no longer used by the insured member
- rights to this property are granted that are financially tantamount to a sale
- no benefit payments are due upon the death of the insured person (e.g. rights of abode or leasehold). Voluntary repayments are possible at any time up to the age of 62, provided no insurance claim has supervened. The minimum repayment sum is CHF 10 000.
How can an early withdrawal be claimed?
A written request for early withdrawal must be submitted to Syngenta Pension Fund, enclosing all the documents listed below. After the claim has been submitted and Syngenta Pension Fund has received all the required documents, the sum is paid out within two months at the earliest and within six months at the latest. In the case of married insured members, the spouse must sign the application as well (authenticated signature). The sum is paid out directly to the vendor, the builder or the mortgage lender.
Download the file "Regulations of Syngenta Pension Fund" and refer to "Promotion of home ownership, Pledging, Art. 28"