People who, in certain years, did not pay contributions to the tied individual pension provision (Pillar 3a) or only paid part of them will be able to pay these contributions retroactively in the future by making redemptions.
Retroactive redemptions can be made for the first time in the 2026 tax year for the year 2025.
People engaged in gainful employment in Switzerland who, after January 1, 2025, have not paid the maximum allowable amount into Pillar 3a each year will be able to retroactively pay these contributions for the previous ten years and deduct these redemptions from taxes.
They will thus be authorized each year to make, in addition to the ordinary contribution, a redemption in Pillar 3a up to the so-called “small contribution” (in 2026, for example, equal to CHF 7,258).
- Those who wish to make a redemption must be entitled to pay contributions to Pillar 3a, i.e., have an income subject to AHV in Switzerland both in the year for which the contributions are paid retroactively and in the year in which the redemption is made.
- A redemption will only be possible if in the year it is made the person in question has paid the maximum amount of the ordinary annual contribution.
- The redemption will be fully deductible from taxable income, like the ordinary annual contribution.
The new provisions provide for special regulations to ensure the legitimacy of redemptions and to ensure that they can be reconstructed later and, in particular, correctly verified by the competent tax authorities.