Clarification of FMA Practice Regarding Cash Payments Due to Self-Employment

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1. General Provisions
   This guideline provides an overview of the cash payout from the pension fund blocked account. For individual cases, only the statutory provisions and the directives of the supervisory authority are decisive. The FMA is happy to provide further information upon request.
   A detailed list of the documents to be submitted as part of an application for the release of the pension fund blocked account can be found in the application form under the respective ground for application.

2. General Principle
   Upon termination of an employment relationship and the associated exit from the employer's pension scheme, a so-called portability benefit arises. This must continue to be used for old-age provision. For this purpose, it is transferred to the pension scheme of the new employer. If this cannot be done, it must be paid as a deposit for a premium-free portability policy with an insurance company authorized in Liechtenstein or deposited into a blocked account for provision purposes at a Liechtenstein bank. Therefore, the portability benefit may not generally be paid out in cash (Art. 12 para. 1 of the Act on Occupational Old Age, Survivors' and Disability Pension Schemes, BPVG).

3. Exceptions to the Cash Payout Prohibition
   There are three exceptions to the general prohibition on cash payouts (so-called grounds for cash payout). These are exhaustively listed in Art. 12 paras. 3 and 4 BPVG. In the case of a blocked account, the cash payout must be applied for with the FMA. If the pension assets are still held by the pension scheme, the application for cash payout may also be submitted directly to it. The FMA or the competent institutions will examine whether the conditions for a cash payout are met and decide on the payout. The FMA merely releases a blocked account after approving an application. The actual payout or transfer is carried out by the account-holding bank upon receipt of the FMA confirmation. For married persons or those living in a registered partnership, cash payout is only permissible if the spouse or registered partner consents in writing (Art. 12 para. 5a BPVG). The cash payout is possible upon explicit request in the following cases:

• The portability benefit amounts to less than one annual contribution of the insured person (para. 3.1)
• The applicant permanently leaves the Liechtenstein-Switzerland economic area and is not subject to mandatory insurance for the risks of old age, death, and disability according to the legislation of an EEA member state. (para. 3.2)
• Commencement of self-employment in Liechtenstein or Switzerland (para. 3.3).

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3.1 The Portability Benefit Amounts to Less Than One Annual Contribution of the Insured Person
3.1.1 The portability benefit will be paid out in cash if it amounts to less than one annual contribution of the employee leaving the insurance scheme. This may be the case if the applicant has only paid pension contributions for a few months.
3.1.2 For the calculation of the relevant annual contribution, only the employee contributions for risk and old-age benefits paid over a period of 12 months are taken into account. Employer contributions are not included. If an employee was employed for less than 12 months, the pro-rated annual contribution is decisive.1 Stated administrative costs must be deducted from the annual contribution.2 The payout of the portability benefit can only be made if the calculated annual contribution of the insured person is greater than the current balance of the pension fund blocked account.

3.2 The Applicant Permanently Leaves the Liechtenstein-Switzerland Economic Area and Is Not Subject to Mandatory Insurance for the Risks of Old Age, Death, and Disability According to the Legislation of an EEA Member State
3.2.1 The departure must be permanent; a temporary stay abroad (e.g., for study purposes) is not sufficient. In this regard, immigration regulations are referenced. Proof can be provided, for example, by certificates of deregistration with Liechtenstein authorities or registration with foreign authorities, confirmations of starting employment abroad, as well as rental or purchase contracts for residential property abroad.
3.2.2 If the employee moves to a country of the European Economic Area (EU member states, Norway, or Iceland), the FMA additionally requires confirmation from the country of departure from the competent authority that the employee is not subject to mandatory insurance for the risks of old age, death, and disability.
3.2.3 The FMA has concluded agreements with the competent social security authorities of Spain, Austria, and Germany regarding cooperation in clarifying social security obligations and has also drafted corresponding supplementary forms. The applicant must submit the respective supplementary form, fully completed, to the FMA, which will forward it to the competent foreign authority for verification. The clarification of social security obligations will thus be carried out directly by the FMA in the case of departures to Spain, Austria, or Germany.
Note: The confirmation from the competent authority regarding the existence or non-existence of mandatory insurance in the statutory pension scheme can be issued no earlier than three months after departure from the Liechtenstein-Switzerland economic area.
1 This is calculated by multiplying the monthly contribution by 12.
2 If such costs are noted, for example, on the pension statement, the applicant may deduct half of the administrative fees (i.e., the portion paid by the employee) from the annual risk and savings contribution.

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3.3 Commencement of Self-Employment in Liechtenstein or Switzerland
3.3.1 The applicant must prove that they will commence or have already commenced self-employment. To provide proof, the applicant must submit a confirmation from the AHV (FL/CH) regarding registration as a self-employed person. The FMA may request additional documents from the applicant to prove the actually intended or already commenced self-employment. These include, among others, a lease agreement for commercial premises, a business plan, an extract from the commercial register, an extract from the trade register, etc. As long as the applicant cannot convincingly demonstrate that they are actually commencing self-employment, the cash payout will be denied. In particular, no release will be granted based on a plan that is in no way specified and is open-ended in time.
3.3.2 The applicant must also confirm via a supplementary form that they exercise the self-employment as their main occupation. If the self-employment constitutes only a secondary occupation (in addition to dependent employment), a payout is not possible.
3.3.3 The purpose of this regulation is to provide financial support when establishing a business as an exception to the principle that pension assets should be preserved for old-age provision. Therefore, the commencement of self-employment may not date back more than one year at the time of application.
3.3.4 By analogy, employees of legal entities with significant participation and employer functions may also apply for a cash payout due to the commencement of a business (see also para. 4 FMA-WL 2022/03).

4. Fees
   Processing fees are determined according to Annex 1 Section E letter h to Art. 30 para. 1 of the Act of 14 June 2004 on the Financial Market Supervision (FMAG), in its current version.

• The portability benefit amounts to less than one annual contribution of the insured person (Art. 12 para. 3 BPVG) CHF 100.00
• Permanent departure from the Liechtenstein/Switzerland economic area (Art. 12 para. 4 BPVG) CHF 200.00
• Commencement of self-employment (Art. 12 para. 4 BPVG) CHF 200.00

5. Penal Provisions
   The cash payout prohibition must not be circumvented. By submitting the application for release of the pension fund blocked account, the applicant declares that the form has been completed truthfully. Anyone who does not complete the required forms truthfully will be punished by the District Court according to Art. 25 para. 2 BPVG for a misdemeanor with a fine of up to CHF 5,000.00 or, in case of uncollectability, up to one month of imprisonment.

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6. Final Provisions
6.1 Data Protection
The FMA processes personal data exclusively in accordance with the general data processing principles of the General Data Protection Regulation (Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016 on the protection of natural persons with regard to the processing of personal data and on the free movement of such data, and repealing Directive 95/46/EC) as well as in accordance with applicable data protection law. All information regarding the processing of personal data, including details on the purpose of processing, the data controller, and the rights of data subjects, is contained in the FMA's data protection information: https://www.fma-li.li/de/die-fma/datenschutz

6.2 Entry into Force
This guideline entered into force on 4 April 2019. The amendments of 27 May 2026 enter into force on 27 May 2026.

6.3 List of Amendments
Compared to the version of 30 November 2022, the version of 27 May 2026 contains the following amendments.

• Title: Change of title from "Cash payout of the portability benefit in occupational old age, survivors' and disability pension schemes" to "Release of the pension fund blocked account"
• Para. 2: Linguistic adjustments
• Para. 3: Linguistic adjustments; clarifications regarding the correct contact point for the cash payout and the release process; clarification that the ground for cash payout "commencement of self-employment" only applies when self-employment is commenced in Liechtenstein or Switzerland. If self-employment is commenced in an EEA country, the cash payout is governed by the ground for cash payout "departure from the Liechtenstein-Switzerland economic area"
• Para. 3.2: Linguistic adjustments
• Para. 3.3: see explanation for para. 3.
• Para. 3.3.1: Restructuring and linguistic adjustments; clarification of the required documents and the necessary degree of substantiation for the commencement of self-employment.
• Para. 3.3.2: Restructuring and linguistic adjustment; clarification that self-employment as a secondary occupation does not justify a cash payout.
• Para. 3.3.3: Practice change: A cash payout of the accumulated assets in the statutory occupational pension scheme due to "commencement of self-employment" is now, following Swiss practice, only possible within one year of commencing self-employment.
• Para. 3.3.4: Clarification that the ground for cash payout "commencement of self-employment" applies by analogy to persons who, as employees of legal entities with significant participation and employer functions, commence an occupation.
• Para. 4: Fees

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• Para. 5: Penal Provisions