Pension system in Switzerland

The old-age and survivors' insurance ( AHV) is obligatory pension insurance in Switzerland. They, together with the disability insurance and supplementary benefits, the first - state - pillar of the Swiss three-pillar system and serves the reasonable assurance of basic needs. The AVS has the character of a solidarity work.

Old-age pensions, women receive from the age of age of 64, men over the age of 65 years of age. It is possible prior to 64./65. To relate age OASI benefits, but only under certain conditions and with a reduction in benefits. The reference of the old age pension can be deferred even by up to five years. Depending on the duration of the postponement is granted on the pension a surcharge. Survivors' pensions receive widows and widowers, if they have immature or in training children in the same household.

Origin and history

Since 1889, the statutory pension insurance protects the insured in their reduction or risk to their capacity to work, old age and death, their survivors. This has been triggered by the poverty of the factory workers. In the 1930s, corresponding efforts were rejected by the people. The federal government had in consequence a small contribution to the forerunner of the Pro Senectute, which supports needy old. Today's AHV arose from the wage and merit compensation fund for military men, which was redesigned in active service during the Second World War. On July 6, 1947, the AVS was adopted following a similar concept in a referendum. On January 1, 1948, the AHV could be introduced. To adjust the AHV the needs of the time and the changed demographics, ten revisions have been made so far. The 11th revision, which provided for the increase of the retirement age for women to 65 years, among other things, was presented on May 16, 2004 In the popular vote and discarded.

Organization

The AVS has much the same structure as the disability insurance, with which it is closely linked organizationally.

Two areas of the AVS are organized centrally. The Federal Office for Social Security ensures the uniform application of the statutory provisions. The Central Compensation Office (CCO ) in Geneva leads the overall accounting of the AVS and assigns each insured person insured their number. All other tasks are performed by the compensation funds. Over a hundred cash will be borne by associations, employers, the cantons and the Confederation. The compensation funds are also contact points of the insured.

Insured

Mandatory insured with the AVS are:

  • All residing in Switzerland people from the age of 20 years (employed from the age of 18 ), including students and non-employed persons. However, does not apply to persons who (especially in the " Bilaterals II ") are compulsorily insured in other states due to inter-governmental agreements
  • Workers who reside abroad but working in Switzerland
  • Swiss citizens who are employed by a Swiss employer abroad.

Can insure voluntarily

  • Nationals of Switzerland, EU or EFTA, - were compulsorily insured in the OASI and immediately thereafter take up residence outside Switzerland, the EU and EFTA - at least 5 years.

Financing

The financing of the OASI occurs mainly through the income-related contributions of the insured. Besides the children all insured persons are liable for contributions. More money goes to the federal government of the AVS ( from value added tax shares as well as tobacco and alcohol taxes) and by the cantons. The state contributions amount to around 20% of income. For salaried employed persons, employers and employees share the bounty of half each ( each 4.2% of gross wages ). For self -employed, the contribution depends on the income (within 7.8 % of net income ).

The OASI fund the pensions under the PAYG system, which means they accumulate no capital, but also gives the revenues immediately to pay the pensions again. The redistribution runs over the AHV compensation fund and the AHV compensation fund. The AHV compensation fund is used as a reserve for fluctuations of the cash inflows and is according to law, the pensions of a year have on reserve, that is, it should be so high that the benefits of a year could be financed from without inflows.

To the financing and the performance of the AVS there are constant discussions between commoners and left. While some demographics and the unfavorable development between contributors and beneficiaries observe with concern and reforms (among benefit cuts, higher contributions, higher retirement age, lowering the minimum interest rate, abolition of the mixing index ) call, trust the others to the contract between generations and to continuing productivity growth; they want to expand the OASI and more flexible retirement age without pension cuts. This socio-political confrontation leads to the recurring attempts to revise the AHV.

Services

When an entitlement occurs, the pension is paid by the competent compensation fund. Pensions are adjusted every two years of wage and price developments (mixed index). If inflation is higher than 4 % in a year, the pension will be adjusted earlier. Does not cover the retirement living costs, so-called Supplementary benefits will be paid.

The retirement pension is calculated on the basis of the average annual income. For this, the contribution years, the upgraded incomes and the educational and child care credits are instrumental. Currently, the minimum pension is 1,170, the maximum pension francs 2,340 per month. Married get together a maximum of 150 % of the maximum pension ( Plafonierungsinitiative ).

AHV number

Each insured person will receive their own personal insurance number, also called social security number. The assignment by the CCO ensures that a certain number is not assigned to more than one living persons.

With the introduction of the AHV insurance number was 8 digits, in 1964, was added a fourth, three-digit numeric keypad, bringing the number was 11 digits. These subcontracted to June 30, 2008 AHV numbers are structured as follows:

  • First 3 digits: the beginning of the surname
  • Next 2 digits: Year of birth
  • Next 3 digits: Birthday and Gender
  • Last 3 digits: order number, nationality, check digit

The four number blocks are separated by a dot. Example of a social security number: 123.45.678.113 - from this it can be determined that the person is female, Swiss and was born on 16 June 1945 and her ( unmarried ) name starts with the letters As or At.

AHV number since 1 July 2008

The system with 11- digit numbers joined to technical, organizational and data protection limits, which is why on July 1, 2008, a new 13-digit number was introduced (as nouveau numéro de sécurité sociale ( NNSS ) refers ). The new number does not allow any conclusions as to the person anymore, and the limits of its use are prescribed by law. The new insurance number is composed of

  • The numeric country code 756 for Switzerland according to the international standard ISO 3166-1
  • A nine-digit personal, but " not speaking " number and
  • A check digit ( EAN -13).

An example of a valid social security number is: 756.9217.0769.85

International Article Number (EAN) Social security in Switzerland
36555
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