Vested benefits account

The Tellco vested benefits account solution is an interest-bearing solution for second-pillar pension assets. The assets are held in a vested benefits account and remain tied within the occupational pension system.

The account solution is particularly suitable if you want to keep your pension fund assets secure during a change of employment, a career break or another transition period.

The account solution is particularly suitable for people who value stability and simple management, or whose vested benefits assets are likely to remain outside a pension fund for only a short or as yet undetermined period.

It may also be appropriate if a withdrawal is planned soon or a transfer to a new pension fund is foreseeable.

With the account solution, vested benefits assets earn interest and are not invested directly in funds or other securities. Their development therefore depends on the applicable interest rate.

With an investment solution, the assets participate in the performance of the financial markets. It may be particularly suitable for a longer investment horizon, while the account solution focuses more strongly on stability and short-term flexibility.

The assets earn interest at the currently published rate. Interest is credited in accordance with the applicable terms of the Tellco Vested Benefits Foundation.

You can find the current interest rate under “Fees and terms”.

Tellco offers attractive, market-based interest terms for the vested benefits account solution. The interest rate is reviewed regularly and adjusted to the current interest-rate environment.

This ensures that your vested benefits assets earn interest at competitive terms. The currently applicable interest rate is transparently available at all times on the Tellco website.

The assets in the account solution are not invested directly in securities and are therefore not subject to immediate price movements in the financial markets. Their development is determined by the applicable interest rate.

The account solution therefore offers a predictable alternative for people who do not want to expose their vested benefits assets to the ongoing fluctuations of a securities investment.

If the vested benefits assets are to be transferred to a new pension fund or paid out in the foreseeable future, there is little time to offset fluctuations in a securities investment.

In such situations, the account solution can be an appropriate temporary solution because the assets earn interest and are not directly dependent on short-term stock market movements.

The Tellco vested benefits account solution can be opened directly online through Tellco Vorsento. The account is opened digitally in just a few steps, without paper forms.

You can then provide your previous pension fund or vested benefits institution with the information required to transfer your pension assets.

Yes. Existing vested benefits assets can generally be transferred directly from another vested benefits institution to the Tellco Vested Benefits Foundation.

The assets are not paid into your private account, but remain within the occupational pension system. Before switching, it is advisable to check whether your current provider charges any transfer or account closure fees.

The vested benefits account solution is not a savings account into which you can make deposits freely. It is designed to preserve pension assets already accumulated in the second pillar.

Transfers may include vested termination benefits from a pension fund or assets from another vested benefits institution. Pillar 3a is generally intended for voluntary private pension contributions.

In Tellco Vorsento, you can view your vested benefits assets and the available documents digitally. This allows you to keep track of your account solution even during an extended career break or a stay abroad.

If your circumstances change, you can prepare the next steps in good time and use personal advice when needed.

According to the currently published terms, opening, maintaining and closing the account are free of charge.

Fees may apply for special services, such as an early withdrawal for residential property, a pledge or certain payments. The applicable Tellco Vested Benefits Foundation fee regulations provide the complete overview.

You can hold up to two vested benefits accounts with Tellco. Splitting the assets may be of interest, particularly with a view to future capital withdrawals.

Depending on your personal circumstances and the applicable tax rules, staggered payments may help to optimise the tax burden. The option of splitting the assets should be considered when they are transferred.

If your investment horizon or risk tolerance changes, you can consider whether an investment solution would be more suitable for part or all of your vested benefits assets.

When switching, you should consider in particular the remaining investment period, possible fluctuations in value, the fees and the planned date of the transfer or payment.

When you start a new job and are affiliated with a pension fund again, the vested benefits assets must generally be transferred to the new pension institution.

To do this, you provide the Tellco Vested Benefits Foundation with the details of the new pension fund. The assets previously held separately are then reintegrated into your active occupational pension provision.