Why pension capital remains taxable after it has been paid out

When money is paid out from an occupational pension scheme, it is no longer part of the pension scheme but becomes part of the individual’s ordinary assets. These assets are taxed in the same way as any other capital as soon as they exist as a balance or investment. Even if the money originally came from the pension scheme, the tax liability remains. Once paid out, the funds are treated as ordinary assets. (BGE 9C_359/2025 of 11 October 2025)