Clarification of FMA practice regarding cash payments due to self-employment

In accordance with Art. 12 para. 4 of the Law on Occupational Pension Plans, a vested benefit is paid out in cash at the employee's request if the employee takes up self-employment and is not compulsorily insured for the risks of old age, death and disability under the legislation of a member state of the European Economic Area.

In deviation from Swiss practice, the FMA's previous practice permitted a cash payment in exceptional cases even after the expiry of one year since the commencement of self-employment if the cash payment appeared necessary to maintain the own business and ultimately to secure a livelihood. However, this practice, which was designed as a hardship provision, led to delimitation difficulties and considerable legal uncertainty in its application. Alignment with Swiss practice is therefore advisable. As in Switzerland, a cash payment following the commencement of self-employment will in future only be possible within one year of the commencement of self-employment. This clarification of the practice serves to harmonize the reason for cash payments within the Liechtenstein-Switzerland economic area, to avoid cross-border circumventions of the law and to strengthen legal certainty and legal equality. It also takes greater account of the legal link to the commencement of self-employment.

The FMA Guidance 2019/2 on the release of the blocked pension fund account was amended accordingly.

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