The term “vested benefits” refers to assets or privileges which are granted to a person or other entity on a guaranteed basis.
This term is most commonly used to describe retirement savings which a person becomes eligible to access once they reach retirement age.
In Switzerland, the term is most commonly used in reference to money which has been contributed to the pillar 2a category of retirement savings (occupational pension funds) by employers and employees.
This money is owned entirely by employees, but can only be accessed when employees reach legal retirement age.
When a resident of Switzerland becomes unemployed, the vested benefits held by their former employer’s pension fund must be transferred to a vested benefits account. Self-employed individuals can choose to withdraw their vested benefits provided certain conditions are met.
Swiss vested benefits account comparison