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.
2026-05-27Liechtenstein Financial Market Authority
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.