The Liechtenstein Financial Market Authority has amended its guidance on the release of blocked pension fund accounts to clarify that, after a person starts self-employment, vested benefits may be paid out in cash only within one year of the start of self-employment. The change to FMA Guidance 2019/2 aligns Liechtenstein practice with Switzerland and removes the previous possibility of exceptional later payouts. Under Article 12 paragraph 4 of the Law on Occupational Pension Plans, employees may request a cash payment if they take up self-employment and are not compulsorily insured for old age, death and disability risks under the legislation of a European Economic Area member state. The FMA said its earlier hardship-based practice, which allowed payment after one year where this appeared necessary to maintain the business and secure a livelihood, led to boundary issues and considerable legal uncertainty. The revised approach is intended to harmonize the basis for cash payments within the Liechtenstein-Switzerland economic area, reduce cross-border circumvention of the law, strengthen legal certainty and equal treatment, and better reflect the legal link to the commencement of self-employment.
Liechtenstein Financial Market Authority2026-05-27
Liechtenstein Financial Market Authority limits pension fund blocked account cash releases after self employment to one year
The Liechtenstein Financial Market Authority has amended FMA Guidance 2019/2 to clarify that vested pension benefits may be paid out in cash only within one year of commencing self-employment. The change removes the previous hardship-based practice of allowing later payouts and aims to align with Switzerland, reduce cross-border circumvention, and strengthen legal certainty and equal treatment.