Impact of BREXIT on cash payment upon departure

The United Kingdom left the EU on 31 January 2020. The agreement on the free movement of persons and Regulations (EC) No. 883/2004 and No. 987/2009 between Switzerland and the United Kingdom will cease to be applicable once the transition period ends on 31 December 2020. Switzerland and United Kingdom have therefore negotiated an agreement on citizens' rights that will take effect on 1 January 2021. However, this agreement does not apply to the cash payment of LOB termination benefits.

In the absence of an agreement between the EU and the United Kingdom, as of 1 January 2021, people who have settled in the United Kingdom and are not engaged in any gainful activity in an EU country will no longer be subject to the restriction on cash payments in the event of a social insurance requirement. These persons are entitled to the disbursement of the totality of their assets held under an occupational pension scheme. A clarification of the social insurance requirement is no longer necessary, even if the person left Switzerland before 1 January 2021.

(Message from the Liaison Office)