2nd pillar pension benefits (retirement, disability, death) or an amount up to the termination benefit accumulated to date can be pledged (for persons over 50 the same restrictions apply as in the case of an advance withdrawal). The pledge option can be chosen up to three years prior to retirement age and must be reported to the pension fund in writing. The written approval of the spouse or registered partner is required.
Some of the options for use of your pension assets as determined by the regulations are limited by the pledge. Insofar as the amount pledged is affected, the agreement of the pledge holder is required in the following cases:
- cash payment of termination benefit
- payment of pension benefits
- transfer of part of the termination benefit in the event of divorce or the dissolution of a registered partnership.
Provided you comply with the mortgage obligations, no tax is due, nor is your benefit coverage reduced. However, if the pledged amount needs to be realized, a pledge has the same consequences as an advance withdrawal.