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Legal changes concerning occupational pension plans

Sharing of the occupational retirement provision in the event of divorce

The revision of the divorce law came into force on 1 January 2017. As of such date, retirement provision sharing may always take place in the event of divorce, whether the spouses are already retired or still working.

So far, sharing could take place only for working spouses. As soon as a covered event occurred (invalidity or retirement of one or both of the spouses), termination benefits could not be shared. Only a fair compensation within the meaning of Art. 124 CC used to be paid, which often resulted in unsatisfactory situations.

The new divorce law will remedy the issues of the current sharing system and allow a more equitable distribution of retirement savings. The decisive moment for the consideration of the claims of retirement entitlement will now be the beginning (rather than the end) of the divorce proceedings. This new regulation also applies to the dissolution of a registered partnership.

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