Pillar 3a in the event of death: beneficiaries, inheritance and tax
The Pillar 3a balance does not simply fall into the estate in the event of death: a statutory beneficiary order determines who receives it. Compando explains the order, the adjustment options and the tax on the payout.
1. Who receives Pillar 3a in the event of death?
In Pillar 3a, the balance does not automatically become part of the estate. The pension foundation pays directly to the entitled person following a statutory order, the beneficiary order, not the will.
Especially in patchwork families, in cohabitation or after a divorce, this often leads to unexpected outcomes.
Aspect | Pillar 3a | Inheritance law |
|---|---|---|
Basis | pension law | Civil Code / will |
Payout | directly to beneficiaries | via the estate |
Will decisive? | often no | yes |
Freely selectable? | limited | largely |
Example: A 54-year-old branch manager from Frauenfeld is married and has two children. His Pillar 3a balance is CHF 180'000. After his death, his wife receives the entire balance directly, without going through the estate. The children have no direct claim from the beneficiary order as long as the wife is alive. The value of the balance can, however, be taken into account for inheritance-law equalisation or statutory-share questions: if the payout violates the children's statutory share, for example with a small estate, they can bring an action for abatement.
2. How does the Pillar 3a beneficiary order work?
Who receives the balance is determined, even without your own beneficiary declaration, by the statutory cascade under Art. 2 OPO 3 (BVV 3). Only when no person exists in one level does the next move up.
Level | Who receives the balance? | Condition |
|---|---|---|
1 | Spouse / registered partner | automatically |
2 | Descendants, supported persons, life partner | if level 1 empty |
3 | Parents | if levels 1–2 empty |
4 | Siblings | if levels 1–3 empty |
5 | remaining heirs | final level |
Level 2 includes direct descendants, substantially supported persons, life partners with at least five years of uninterrupted cohabitation and persons who provide for joint children.
Legal change from 1 June 2027: Until then, the spouse or registered partner ranks first by law. After that, the federal government relaxes the order; children can then be given priority even during an existing marriage.
Good to know: The beneficiary designation is not freely selectable: only adjustments within the statutory order are possible, such as dividing shares or a changed order of the rear levels. A charitable organisation cannot, in principle, be designated directly as a Pillar 3a beneficiary; it can at most be considered in the final level if it becomes an heir through a valid will or contract of inheritance and no beneficiaries with priority exist.
3. Can I change the beneficiary designation?
Within the second beneficiary group, shares can be divided; the total must add up to 100 percent. The order of levels 3 to 5 can also be adjusted within the legal framework. The change must be submitted in writing to the pension foundation.
An example: After a divorce, the children belong to the second beneficiary group; if a new life partner meets the legal conditions, he can belong to the same group. Without a clear beneficiary declaration, the distribution then follows the law and the foundation regulations; an unreported partner often comes away empty-handed in the event of dispute. A written beneficiary declaration sets the shares instead, for instance 70 percent to the life partner and 30 percent to a child.
Four steps secure the desired distribution:
- Complete the foundation's form for the official adjustment of the beneficiary designation.
- Register the life partner, indispensable especially in cohabitation.
- Review the beneficiary designation after a separation to avoid conflicts with the ex-partner.
- Document the changes as proof for the foundation.
An adjustment is especially important on marriage, divorce, the birth of children, a new partnership or a move into cohabitation.
Important: Many people do not update their beneficiary designation after a separation or divorce. As a result, unexpected claims arise in the event of death that can no longer be corrected later. A review of the designation after every separation and a written notification to the pension foundation protect against this.
4. How is Pillar 3a taxed in the event of death?
In the event of death, the 3a balance is paid out to the beneficiary and taxed there as a capital benefit from pension provision, separately from the rest of the income and at a reduced rate. Decisive are the beneficiary's place of residence, the size of the benefit and the cantonal pension tax rate.
Between the cantons, the burden differs considerably: on a withdrawal of CHF 100'000, the tax in 2026 is around 3 to 5 percent in low-tax cantons such as Zug or Schwyz and about 6 to 10 percent in Zurich, Bern or Basel-City. The exact amount for the beneficiary's canton of residence is provided by a tax calculation.
If the same person receives further capital benefits from a pension fund, vested benefits or Pillar 3a in the same tax year, these can be added together for the rate determination; the exact rule differs by canton.
5. Does my cohabiting partner receive Pillar 3a on death?
Unlike spouses, cohabiting partners have no automatic claim in Swiss pension provision. They only belong to the second level if the cohabitation lasted at least five years uninterrupted until death, they provide for joint children or they were substantially supported by the deceased. The life partner should also be reported to the pension foundation in writing without fail: without the notification, the conditions have to be proven after death, which leads to delays or disputes. For couples in cohabitation, this notification is one of the most important steps.
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