Services for Commuters
Cross-border commuters face complex questions when it comes to pension plan issues (health insurance, pension fund, third pillar). We help them to make the right decisions. At the beginning as well as at the end of employment in Switzerland.
Cross-border Commuters Germany
More than 60,000 German cross-border commuters work in Switzerland and are therefore subject to 2 different social security systems, which makes having a consultation all the more complex and important. The focus is on pension issues: health insurance, life risk protection (disability/death), tax-optimised pension savings, pension planning. Haysen has the experience and knowledge to provide you with the best possible support. We work with you to find out what cover you really need and prevent over- or under-coverage.
Health Insurance Solution for German Cross-Border Commuters
According to the principle of the place of employment, German cross-border commuters must insure themselves in Switzerland in accordance with the Swiss Health Insurance Act (KVG). In 2002, Swiss cross-border commuters were granted a right of option which, in deviation from the principle in the EU, also allows them to choose health insurance in Germany. Within three months, cross-border commuters must choose one of the various insurance options.
Persons who start a new employment in Switzerland as German cross-border commuters or persons who leave Switzerland and become cross-border commuters.
In these cases, there is the option of being subject to the Swiss Health Insurance Act (KVG) or of being exempted. In the case of an exemption (exercise of the option right), cross-border commuters can insure themselves in Germany in the statutory health insurance (GKV) or the private health insurance (VVG). Criteria for the decision are differences in both insurance benefits in the country of residence and the country of employment and the amount of the premiums.
Persons who are already gainfully employed as cross-border commuters and have exempted themselves from compulsory insurance.
Cross-border commuters may take out insurance:
- with the German statutory health insurance (GKV)
- with German private health insurance (PKV)
- in Switzerland, in accordance with the Swiss Health Insurance Act (KVG).
According to the current status, a change to the Swiss Health Insurance Act (KVG) is only possible if the cross-border commuters receive a renewed exemption from the canton. There are cantonal differences here. People who were already cross-border commuters before 2002 and/or are Swiss can apply to most cantons for a renewed right of option; the final decision is always made by the competent office to enable a change to the Swiss KVG model. A Federal Court ruling of March 2015 makes it possible to obtain a new option right in certain cases. Other reasons for the right to choose are: Marriage, birth of a child and death.
Pension Management for Cross-Border Commuters from Germany
Tax-privileged Pension Savings
Since 2008, cross-border commuters have been able to build up pension capital cleverly and efficiently and generate high tax benefits. Similar to employees resident in Switzerland with Pillar 3A. By saving at least 100 Euros per month, you generate enormous tax advantages and close gaps in your old-age provision, as pensions are increasingly being reduced. You need your Swiss employer to implement this. We have the know-how to help you with the implementation. Roche, Novartis, Migros, Coop, Universitätsspital Basel-Stadt and Idorsia have outsourced the administration of this solution to Haysen. You have come to the right place.
Pension Analysis and Planning
Cross-border commuters are subject to the German and Swiss social security systems. When you start working in Switzerland for the first time, it is therefore very important to find the right solutions. Before making these important decisions, a detailed analysis should be made. The pension and financial analysis includes the presentation of the expected income and expenses in the event of disability due to illness and accident + death due to illness and accident, as well as the analysis of the expected income (retirement benefits from the AHV, pension fund and any private pension plans) and expenses upon retirement. If there are any gaps in cover on the basis of the analyses, Haysen will work out proposals for solutions together with the client. A client dossier with the relevant documents is prepared and submitted.
Investment of Vested Benefits
German cross-border commuters working in Switzerland pay social contributions to the 1st pillar (AHV) and the 2nd pillar (BVG, pension fund) together with their employer. The pension fund is a funded scheme. Individual pension capital is built up. If you have not yet reached retirement age when you leave Switzerland, the “compulsory part” of the pension capital must be placed in a vested benefits account or custody account in Switzerland. This is then referred to as “vested benefits capital”. The earliest withdrawal of this capital is possible at the age of 59 for women and 60 for men. The “extra-mandatory” capital can be freely disposed of. However, it can also be kept invested in CH within the second pillar. If one is resident in Germany and liable to pay taxes when withdrawing pension fund assets, various points must be taken into account: On the one hand, one can withdraw the capital in a tax-optimised and staggered manner; on the other hand, inheritance law aspects must be taken into account. Note well: contrary to popular belief, no retirement pensions flow from a vested benefits account or custody account; the capital must be withdrawn by the age of 70 at the latest. However, there is a possibility to convert at least part of the vested benefits capital directly into a Swiss retirement pension, if desired.
Cross-border Commuters France
More than 180,000 French cross-border commuters work in Switzerland and are therefore subject to two different social security systems, which makes getting advice all the more complex and important. The focus is on pension issues: health insurance, protection against life risks (disability/death), tax-optimised pension savings, pension planning. Haysen has the experience and knowledge to provide you with the best possible support. We work with you to find out what cover you really need and prevent over- or under-coverage.
Health Insurance Solution for French Cross-Border Commuters
In 2002, France and Switzerland granted cross-border commuters to Switzerland a right of option which – in deviation from the principle in the EU – also allows them to choose health insurance in France. Following a change in the law in 2014, cross-border commuters who choose France as their country for health insurance can only choose the French state health insurance (CMU).
Contributions to the French single fund for cross-border workers amount to 8% of taxable income (revenu fiscal de référence [RFR]), reduced by a standard deduction of 9654 Euros. In addition to the contributions for the actual health insurance, the “Contribution sociale généralisée (CSG)” and “the Contribution au remboursement de la dette sociale (CRDS)” may apply.
The Swiss KVG, on the other hand, is financed with so-called capitation premiums. These are independent of income and are calculated by the individual health insurers for adults, children and adolescents. The Swiss system with capitation premiums can be advantageous. The family situation, the level of income and its development in the future must be included in the assessment.
The possibilities to change the system are very limited. A new option is needed. Your Haysen advisor will be happy to help you if you have questions about the new situation and are looking for a solution tailored to your needs.
Cross-border commuters who are insured under the KVG are entitled to insurance benefits in Switzerland as regulated in the KVG for a person resident in Switzerland, and for treatment in France as is customary there (régime général, or régime local). The respective provisions on cost sharing and benefit limits apply.
Changing providers within Switzerland: With an annual deductible of CHF 300 – it cannot be increased for cross-border commuters – the basic insurance can be replaced with another (cheaper) health insurer every six months according to Swiss law.
The right to choose treatment is not guaranteed for cross-border commuters who are subject to the CMU. As a rule, only emergency treatment is insured for them in Switzerland.
Supplementary insurers must be chosen carefully. Acceptance may depend on the state of health. Continuation must be guaranteed if you stop working in Switzerland. Gaps in basic social insurance can be filled with supplementary products. Supplementary insurances are needed that optimally complement the benefits of both countries in the outpatient and inpatient areas. It should also be noted that these benefits can be continued in retirement and are also guaranteed in the former country of employment.
Are you new to working in Switzerland? Are you already a cross-border commuter? Will you be living in France (again) soon?
Then let Haysen advise you free of charge and without obligation.
Pension Management for Cross-Border Commuters from France
Pension Analysis and Planning
Cross-border commuters are subject to the French and Swiss social security systems. When you start working in Switzerland for the first time, it is therefore very important to find the right solutions. Before making these important decisions, a detailed analysis should be made. The pension and financial analysis includes a presentation of the expected income and expenses in the event of disability due to illness and accident + death due to illness and accident, as well as an analysis of the expected income (retirement benefits from the AHV, pension fund and any private pension plans) and expenses upon retirement. If there are any gaps in coverage on the basis of the analyses, Haysen will work out proposals for solutions together with the client. A client dossier with the relevant documents is prepared and submitted.
Investment of Vested Benefits
French cross-border commuters working in Switzerland pay social contributions to the 1st pillar (AHV) and the 2nd pillar (BVG, pension fund) together with their employer. The pension fund is a funded scheme. Individual pension capital is built up. If you have not yet reached retirement age when you leave Switzerland, the “compulsory part” of the pension capital must be placed in a vested benefits account or custody account in Switzerland. This is then referred to as “vested benefits capital”. The earliest withdrawal of this capital is possible at the age of 59 for women and 60 for men. The “extra-mandatory part” of the capital can be withdrawn in cash. If you are resident in France and liable to pay taxes when withdrawing pension fund assets, there are various points to consider: On the one hand, one can withdraw the capital in a tax-optimised and staggered manner; on the other hand, aspects of inheritance law must be taken into account. Note well: contrary to popular belief, no retirement pensions flow from a vested benefits account or custody account; the capital must be withdrawn by the age of 70 at the latest. However, there is a possibility to convert at least part of the vested benefits capital directly into a Swiss retirement pension, if desired.
Show the different scenarios: The tax implications depend on various factors. Time of withdrawal of the capital, exchange rate, interest rate/investment strategies of the assets, etc. Together with tax experts, Haysen analyses more than just the potential for tax savings. The financial security of the family, aspects of inheritance law, as well as provisions for a well-deserved retirement are very complex topics, especially for cross-border commuters or returnees. Haysen will show you the best time for you to withdraw your capital and explain the various investment options. This way you can look forward to your retirement without worries.
Overview of the various providers and products. Is your capital optimally invested? Do you need to/can you withdraw part of your assets early? Here too, your Haysen advisor will show you sensible scenarios.
