Leaving

If you leave Novartis permanently, your vested benefits will fall due for payment. The procedure is as follows:

General aspects

If you decide to leave Novartis permanently, your membership of our Pension Funds also comes to an end. This means your vested benefits will fall due for payment at the end of your contract. Extended cover is only provided for the risks of disability and death for a maximum of one month, provided you have no new employer after you leave. You will automatically receive forms from us, which you must use to inform us by up to two weeks before you leave what should be done with your vested benefits. This also applies if you are transferring to Novartis abroad with a local contract. After transfer, you will receive a confirmation from us, together with a detailed exit statement.

A distinction is drawn between the following scenarios:

  • Remaining in Switzerland
  • Deregistration for relocation to a state within the European Union
  • Deregistration for relocation to a state outside the European Union
  • Cash disbursement in view of the small sum involved

Remaining in Switzerland

If you are remaining in Switzerland, you must complete Form A and return it to us with the necessary enclosures mentioned in the form.

Move to a new employer

If your next employer is located in Switzerland, we need the bank details of the employer’s pension fund. Your vested benefits will then be transferred there after you leave. If you do not achieve the minimum salary for admission to the new pension fund with your next employer, the vested benefits must be transferred to a vested benefits account with a bank or a vested benefits policy with an insurance company.

Temporary suspension of gainful employment

If you are still looking for a job, your vested benefits must be transferred to a vested benefits account with a bank or a vested benefits policy with an insurance company.

Taking up self-employment

If you take up self-employment it is possible to have all your vested benefits paid out in cash minus any voluntary extra contributions paid in over the last three years. For this we need not only your bank details, but also confirmation from the AHV that you are officially registered as self-employed. In the case of married insured members and registered partners, written and officially authenticates consent of the spouse / partner is also required.

Alternatively you can have your vested benefits transferred to a vested benefits account with a bank or a vested benefits policy with an insurance company.

Deregistration for relocation to a state within the European Union

If you are leaving Switzerland permanently and moving to an EU Member State, you must complete Form B and return it to us with the necessary enclosures mentioned in the form. The non-compulsory part of your vested benefits may be paid out in cash when you leave. In the case of married insured members and registered partners, written and officially authenticates consent of the spouse / partner is also required. The compulsory part of your vested benefits (BVG part) and any voluntary extra contributions paid in over the last three years must be transferred to a vested benefits account with a bank or a vested benefits policy with an insurance company. Alternatively the non-compulsory part may also be voluntarily transferred to the vested benefits account or policy. In this case, you must complete Form A by way of an exception.

Deregistration for relocation to a state outside the European Union

If you are leaving Switzerland permanently and moving to a country outside the EU, you must complete Form B and return it to us with the necessary enclosures mentioned in the form. All your vested benefits may be paid out in cash. Bei verheirateten Versicherten bzw. registrierten Partnern bedarf es zudem der schriftlichen und amtlich beglaubigten Zustimmung. However, any voluntary extra contributions paid in over the last three years must be transferred to a vested benefits account with a bank or a vested benefits policy with an insurance company and cannot be paid out until a three-year blocking period has elapsed. Alternatively the non-compulsory part may also be voluntarily transferred to the vested benefits account or policy. In this case, you must complete Form A by way of an exception.

Cash disbursement in view of the small sum involved

Regardless of where you settle in the future, you may have your vested benefits paid out in cash if the portable sum is smaller than the annual contribution. In this case, you must complete Form A and return it to us with the necessary enclosures mentioned in the form. In the case of married insured members and registered partners, written and officially authenticates consent of the spouse / partner is also required.

Fragen & Antworten

I am leaving, but do not yet have a new job. Can I leave my portable sum in the Novartis Pension Funds for the time being?

No. You are required to open a vested benefits account or policy in your name with a bank or insurance and forward the details for the transfer of your vested benefits to the Novartis Pension Funds. If you don't take any action, we are required to transfer your vested benefits to the Substitute Occupational Benefits Institute in Zurich (fees and expenses of the institution will be charged to you).

Substitute Occupational Benefits Institute, Zurich
Tel. 041 799 75 75
www.chaeis.net

How do the bilateral agreements impact my options for cash disbursement as a cross-border commuter?

The bilateral agreements between Switzerland and the EU Member States, as well as Iceland and Norway (EFTA), concern only the legal minimum provision of occupational benefits. Moreover, a transitional period of 5 years is stipulated, which expired on 31 May 2007. After this, i.e. for persons leaving after 31 May 2007, restrictions apply to the cash disbursement of the mandatory part of the vested benefits according to the occupational pensions act (OPA), if those persons leave to a European community state where mandatory insurance likewise exists for the pension risks of old age, disability and death.The persons primarily affected are thus cross-border commuters and also all employees who leave the company before reaching the age of 60, relocate abroad and would like to take their vested benefits in cash. Only the vested benefits above and beyond the mandatory OPA retirement assets can be paid out in cash, while the mandatory OPA part has to be transferred to a vested benefits account with a bank fund or used to set up a vested benefits policy with an insurer.Pension payments and lump sum payments in the event of a claim and early withdrawals for home ownership are not affected.

I will terminate my employment contract between the earliest possible retirement age as defined in the regulations and the age of 65. Do I have to take retirement benefits?

If you continue paid employment or are registered as unemployed, you can request a portable sum instead of the retirement benefits.

How large is my portable sum?

Your portable sum is calculated on the basis of your insurance situation. This is:

  • the portable sum stipulated in the regulations or
  • the portable sum defined in Article 17 of the Federal Act on the Vesting of Occupational Old Age, Survivors’ and Invalidity Benefits (VBA) or
  • the retirement assets as defined in Article 15 of the Federal Act on Occupational Old Age, Survivors’ and Invalidity Pension Provision; (OPA).

A comparative calculation is performed to determine which of the above named amounts is the highest. This will then be paid out. In this regard, please refer to your last personal insurance statement.

Who informs the Novartis Pension Funds of the address for payment?

As the insured person who is leaving, you will inform the Novartis Pension Funds of how your vested benefits are to be used. The Novartis pension funds will send you the appropriate forms for this purpose.

May my vested benefits be paid out in cash?

Cash payment may be requested if:

  • you are leaving Switzerland permanently. Please submit the confirmation of deregistration from the municipality of residence or the current foreign certificate of residence. Please note: If you transfer your residence to an EU state, Iceland, Norway or the Principality of Liechtenstein, restrictive provisions apply, see section "How do the bilateral agreements affect my cash income options as a cross-border commuter" or
  • you are taking up self-employment and are no longer subject to mandatory occupational pension requirements (a current confirmation from the AHV/AVS Compensation Office must be sent to the Novartis Pension Funds) or
  • the vested benefits are smaller than the annual contribution.
  • In the case of cash payment, the written (and notarized) consent of the spouse/registered partner is required.

What has to be borne in mind with the cash disbursement of vested benefits if I am not residing or staying in Switzerland according to tax laws?

If the vested benefits are paid out to persons not residing or staying in Switzerland according to tax laws, the Novartis Pension Funds have to deduct withholding tax and pass the amount on to the tax authorities.

Will I be informed when my vested benefits have been transferred?

Yes, as soon as the payment has been executed, you will receive the definitive vested benefits statement from the Novartis Pension Funds.