Employee s guide to social insurance edition

Transcription

1 Employee s guide to social insurance 2017 edition

2 Contents Introduction...3 Changing jobs...4 Unemployment...6 Unpaid leave, vocational training, language trips, etc....8 Taking up self-employment Spouse who give up gainful employment...12 Ordinary retirement...14 Early retirement Notes...19

3 Introduction 3 Learn more about social security in Switzerland with this brochure Switzerland has an extremely complex social security system. In order to evaluate your own personal insurance situation, you need precise information. This brochure addresses this need by showing you how to ensure that you always have the insurance cover appropriate to your needs. A new job, retirement or unexpected unemployment can often lead to you being confronted suddenly with new situations. We provide you with plain and simple explanations of the statutory insurance cover granted to you in these various life situations. Switzerland s pension system old-age and survivors /disability insurance (AHV/IV) and compulsory occupational pensions (BVG) ensures that the costs of life s basic needs and an accustomed standard of living are met. But only the third pillar individual pension solutions can help you maintain your acquired, personal standard of living. The Swiss state relies on the provision of these supplementary third-pillar solutions we at Baloise offer tailored solutions and are ready assist you.

4 4 Changing jobs Changing jobs Starting a new job within 30 days AVS/AI Pillar 1 Copertura assicurativa The contributory period is remains uninterrupted by a change in employment, so you are still entitled to a full pension if you have a full contributory period, i. e. there are no contribution gaps. Provide your employer with your personal, 13-digit AHV number. Please note Full pension = full contributory period, i. e. no missing contribution years. Partial pension = contributions have not been paid for one or more years (e. g. stays abroad). Maximum pension = highest-possible pension amount (in the case of a full contributory period and maximum contributions paid). The pension amount is determined by three factors: Contributory period (full or incomplete contributory period) Contribution amount (total amount of contributions paid) Educational or parental allowances awarded. If there are no gaps in the contributory years, the full pension equals at least CHF 1,175 and at most CHF 2,350 per month (maximum pension). If, after being adjusted based on the pension table, your average annual income is less than CHF 84,600 (maximum pensionable salary), you will still receive a full pension (assuming a full contributory period), which will nevertheless be less than the maximum pension of CHF 28,200 per year or CHF 2,350 per month (maximum basic AHV retirement pension). BVG Pillar 2 You remain insured against death and disability for one month after leaving the pension fund (= temporary extension of cover). You are entitled to a withdrawal benefit (portable benefit), the amount of which is determined by the Swiss Federal Law on Vesting in Pension Plans (FZG) or by your Pension Regulations. Notify your previous employer or your previous employer s pension fund of your new employer s pension fund so the withdrawal benefit can be transferred. Once you begin your new job, you will be covered by your new employer s pension fund. You will have to transfer your withdrawal benefit to your new employer s pension fund. If you permanently move your residence from Switzerland to an EU or EFTA country, you can only receive the noncompulsory part of the withdrawal benefit in cash. If you establish residence outside the EU or EFTA, you can request payment of the full withdrawal benefit in cash.

5 Changing jobs 5 AVIG Unemployment insurance You are not entitled to unemployment benefits. UVG Accident insurance If you have worked at least eight hours per week for the same employer, your insurance cover for non-occupational accidents ends 31 days after the date on which you lose your claim to at least half of your earnings (extension of cover period). Once you start your new job and work more than eight hours a week, you will be covered by your new employer s UVG insurer against occupational and non-occupational accidents and occupational illnesses. If you work less than eight hours per week, you should keep or take out individual accident insurance with a private insurer or a health insurance fund. Part-time employees working less than eight hours per week are only insured against occupational accidents and occupational illnesses (including on their way to and from work). This insurance cover lapses once you give up gainful employment, i. e. after your last day at work. Private daily sickness allowance insurance Insurance cover lapses when you leave the group of insured persons of your previous employer. There is no temporary extension of cover. Benefits for existing illnesses are provided according to the terms and conditions of the contract. Ask your new employer if daily sickness allowance cover is provided. If this is the case, insurance cover begins on the day you start your new job. There is no need to register. The above remains subject to the provisions of international agreements. If your new employer does not have daily sickness benefits insurance, then take out private daily sickness allowance insurance with a private insurer or a health insurance fund. Residents of Switzerland can take out individual daily sickness allowance insurance without a medical examination within three months after the termination of the insurance cover provided by their previous employer s daily sickness allowance insurer.

6 6 Unemployment Unemployment No gainful employment for an indefinite period AHV/IV Pillar 1 The unemployment benefit is deemed to be the applicable salary for AHV purposes. The unemployment office transfers the contributions to the relevant AHV compensation office, and pays the employer s contribution. Owing to this provision, you do not have to worry about contribution gaps as long as you are receiving daily unemployment allowances. Report to the cantonal compensation office or the local AHV office at your place of residence as soon as you no longer qualify for unemployment benefits. You must continue paying AHV contributions even after you no longer qualify for unemployment benefits. If you do not, you could lose contributory years and, with them, your entitlement to a full pension. The minimum contribution is CHF 478 (incl. IV/LECA) per year. BVG Pillar 2 You remain insured against death and disability for one month after leaving the pension fund (= temporary extension of cover). Concerning your withdrawal benefit, you can either apply for a portable benefits policy or ask for the funds to be transferred to a portable benefits account. As of 1 July 1997, you are compulsorily BVG-insured against disability and death with Substitute Occupational Benefit Institution (the national substitute pension scheme) as long as you receive a daily allowance of at least CHF from unemployment insurance. However, you can also continue either all your pension coverage or only your retirement pension with your previous pension fund (if per-mitted by that fund s regulations), or you can take out individual insurance with the Substitute Occupational Benefit Institution (limited to minimum BVG benefits). If you wish to stay individually insured against death and disability with the Substitute Occupational Benefit Institution or your current pension fund, you will need to apply to the Substitute Occupational Benefit Institution in writing for an exemption from compulsory BVG insurance for the unemployed. You cannot transfer your withdrawal benefit into the compulsory BVG insurance plan for the unemployed. If you wish to continue saving with the Substitute Occupational Benefit Institution at your own expense while unemployed, you can transfer the compulsory component of the retirement assets to the Substitute Occupational Benefit Institution. The remaining or, alternatively, the total retirement assets can be transferred to a portable benefits policy or a portable benefits account.

7 Unemployment 7 AVIG Unemployment insurance If you qualify, you will receive the following unemployment benefit (as a percentage of your pensionable earnings): 80% if you are obligated to pay child maintenance, if you are disabled or if your daily allowance entitlement is less than CHF 140 per day. All other persons receive 70%. The number of daily allowances generally depends on your age and the contributory period: Contributory period of at least 12 months:...up to 260 daily allowances Contributory period of at least 18 months:... up to 400 daily allowances Contributory period of at least 22 months and either (a) at least 55 years of age or (b) drawing an IV pension:...up to 520 daily allowances Persons under 25 years of age, without children and a contributory period of at least 12 months:...up to 200 daily allowances Register with the employment office at your place of residence no later than on the first day of unemployment. To receive unemployment benefits, you must follow the requirements of the unemployment office for unemployment claimants and, in particular, document your efforts to find work. Persons unemployed during the four years leading up to age 64/65 are entitled to 120 additional daily allowances. UVG Accident insurance You have compulsory accident insurance cover with the Swiss National Accident Insurance Fund (Suva). The unemployment office deducts the premium from your unemployment benefit and pays it to Suva. Cover ends 31 days after the day on which you last qualify for unemployment benefits (= temporary extension of cover). If you have not found a new job by the time your unemployment benefits expire, you can extend your insurance cover for a maximum of 6 months by making a special agreement with Suva within the 31-day extended cover period. Please contact your Suva agency. Private daily sickness allowance insurance Insurance cover lapses when you leave the group of insured persons of your previous employer. There is no temporary extension of cover. Benefits for existing illnesses are provided according to the terms and conditions of the contract. The above remains subject to the provisions of international agreements. Residents of Switzerland can take out individual daily sickness allowance insurance without a medical examination within three months after the termination of the insurance cover provided by their previous employer s daily sickness allowance insurer. Alternatively, you can take out individual daily sickness benefit insurance with a private insurer or a health insurance fund.

8 8 Unpaid leave, vocational training, language trips, etc. Unpaid leave, vocational training, language trips, etc. Temporary voluntary cessation of gainful employment for an indefinite period AHV/IV Pillar 1 You must continue paying AHV contributions even if you temporarily give up gainful employment. If you do not, you could lose contributory years and, with them, your entitlement to a full pension. The minimum contribution is CHF 478 (incl. IV/LECA) per year. This applies to students, early retirees, disabled persons, widows, divorced women, world travellers, etc. Register with the cantonal compensation office or the local AHV office at your place of residence if you are not going to be gainfully employed for a significant period of time. BVG Pillar 2 You can either continue your entire occupational pension plan or only your retirement pension scheme with your previous pension fund (if permitted by that fund s regulations), or you can take out individual insurance with the Substitute Occupational Benefit Institution (national substitute pension scheme, limited to minimum BVG benefits). You remain insured against death and disability for one month after leaving your previous pension fund (= temporary extension of cover). Concerning your withdrawal benefit, you can either apply for a portable benefits policy or ask for the funds to be transferred to a portable benefits account. Either apply for a portable benefits policy or the transfer of your withdrawal benefit to a portable benefits account or the continuation of your pension coverage with your previous pension fund or with the Substitute Occupational Benefit Institution. If you are no longer a member of a pension fund, it would be advisable to take out additional insurance coverage for death and disability with a private insurer.

9 Unpaid leave, vocational training, language trips, etc. 9 AVIG Unemployment insurance You are not entitled to unemployment benefits while you are temporarily and voluntarily unemployed. Register with the employment office at your place of residence no later than on the first day on which you resume gainful employment after your voluntary leave of absence. You are in principle entitled to benefits if you made unemployment insurance contributions for at least 12 months during the preceding two-year reference period. UVG Accident insurance If you have worked at least eight hours per week for the same employer, your insurance cover for non-occupational accidents ends 31 days after the date on which you lose your claim to at least half of your earnings (extension of cover period). Part-time employees working less than eight hours per week are only insured against occupational accidents and occupational illnesses (including on their way to and from work). This insurance cover lapses once you give up gainful employment, i. e. after your last day at work. The above remains subject to the provisions of international agreements. You can extend your insurance cover for non-occupational accidents within 31 days of leaving your previous employer s UVG insurance scheme (e. g. with Suva or a private insurer) by taking out an interim insurance with your previous employer s UVG insurer for a maximum of 6 months. After expiry of the legal extension of cover or the interim insurance, persons resident in Switzerland must have accident cover included in their health insurance. Taking out individual accident cover is also advisable. Private daily sickness allowance insurance Insurance cover lapses when you leave the group of insured persons of your previous employer. There is no temporary extension of cover. Benefits for existing illnesses are provided according to the terms and conditions of the contract. The above remains subject to the provisions of international agreements. Subject to certain conditions, residents of Switzerland can take out individual daily sickness allowance insurance without a medical examination within three months after the termination of the insurance cover provided by their previous employer s daily sickness allowance insurer.

10 10 Taking up self-employment Taking up self-employment Applies both to men and women AHV/IV Pillar 1 With regard to the risks of disability and death and the retirement provision, insurance cover is the same as for persons who are not self-employed. You are entitled to a full pension if you have a full contributory period. You are only entitled to a partial pension if the contributory period is incomplete. Register the fact that you are taking up self-employment with the cantonal compensation office at your principal place of business or with your professional compensation office. Inform the cantonal tax authorities that you are taking up selfemployment. You will receive the necessary registration forms from the cantonal compensation office on request. BVG Pillar 2 You remain insured against death and disability for one month after leaving the pension fund (= temporary extension of cover). Upon taking up self-employment, you can: request payment of the withdrawal benefit in cash (only with your spouse s consent and normally only within one year after commencing self-employment); or request a portable benefits policy or the transfer of your withdrawal benefit to a portable benefits account. You can voluntarily take out insurance with either: your trade association s pension fund; or your employees pension fund; or the Substitute Occupational Benefit Institution. Depending on what you decide, you request: the payment of the withdrawal benefit in cash; a portable benefits policy or the transfer of the withdrawal benefit to a portable benefits account; admission to a new pension fund; the transfer of your withdrawal benefit to your new pension fund; or a Pillar 3a insurance policy. Alternatively, you can also take out a tax-privileged Pillar 3a insurance.

11 Taking up self-employment 11 AVIG Unemployment insurance You cannot take out unemployment insurance if you are self-employed. UVG Accident insurance You are no longer subject to compulsory accident insurance when you are self-employed. If you previously worked at least eight hours per week for the same employer, your insurance cover for non-occupational accidents ends 31 days after the date on which you lose your claim to at least half of your earnings (temporary extension of cover). The above remains subject to the provisions of international agreements. Take out collective accident insurance or individual accident insurance (with a private insurer or a health insurance fund) or voluntary UVG accident insurance with a UVG insurer. You can extend your insurance cover provisionally for non-occupational accidents within 31 days of leaving your previous employer s UVG insurance (e. g. Suva or a private insurer) by taking out an interim insurance with your previous employer s UVG insurer for a maximum of 6 months. Private daily sickness allowance insurance Insurance cover lapses when you leave the group of insured persons of your previous employer. There is no temporary extension of cover. Benefits for existing illnesses are provided according to the terms and conditions of the contract. The above remains subject to the provisions of international agreements. Residents of Switzerland can take out individual daily sickness allowance insurance without a medical examination within three months after the termination of the insurance cover provided by their previous employer s daily sickness allowance insurer.

12 12 Spouse who give up gainful employment Spouse who give up gainful employment AHV/IV Pillar 1 Spouses who are not gainfully employed must also pay contributions. The amounts depend on their wealth and any pension income. Spouses who are not gainfully employed are exempted from their contribution liability if the other spouse pays at least twice the minimum contribution. Please note You must continue paying AHV contributions even if you give up gain-ful employment temporarily or permanently. If you do not, you could lose contributory years and, with them, your entitlement to a full pension. The minimum contribution is CHF 478 (incl. IV/LECA) per year. Register with the cantonal compensation office or the local AHV office at your place of residence when you temporarily or permanently give up gainful employment. BVG Pillar 2 You remain insured against death and disability for one month after leaving the pension fund (= temporary extension of cover). Concerning your withdrawal benefit, you can either apply for a portable benefits policy or ask for the funds to be transferred to a portable benefits account. However, you can also continue either all your pension coverage or only your retirement pension with your previous pension fund (if per-mitted by that fund s regulations), or you can take out individual insurance with the Substitute Occupational Benefit Institution (national substitute pension scheme, limited to minimum BVG benefits). Either apply for la portable benefits policy or the transfer of your withdrawal benefit to a portable benefits account or the continuation of your pension coverage with your previous pension fund or with the Substitute Occupational Benefit Institution. If you are no longer a member of a pension fund, it would be advisable to take out additional insurance coverage for death and disability with a private insurer.

13 Spouse who give up gainful employment 13 AVIG Unemployment insurance The insurance cover lapses. Ask the employment office at your place of residence whether you can claim unemployment benefits if you resume gainful employment. UVG Accident insurance If you have worked at least eight hours per week for the same employer, your insurance cover for non-occupational accidents ends 31 days after the date on which you lose your claim to at least half of your earnings (temporary extension of cover). Part-time employees working less than eight hours per week are only insured against occupational accidents and occupational illnesses (including on their way to and from work). This insurance cover lapses once you give up gainful employment, i. e. after your last day at work. The above remains subject to the provisions of international agreements. You can extend your insurance cover for non-occupational accidents within 31 days of leaving your previous employer s UVG insurance scheme (e. g. with Suva or a private insurer) by taking out an interim insurance with your previous employer s UVG insurer for a maximum of 6 months. After expiry of the legal extension of cover or the interim insurance, persons domiciled in Switzerland must have accident cover included in their health insurance. Taking out individual accident cover is also advisable. Private daily sickness allowance insurance Insurance cover lapses when you leave the group of insured persons of your previous employer. Benefits for existing illnesses are provided according to the terms and conditions of the contract. The above remains subject to the provisions of international agreements. Subject to certain conditions, residents of Switzerland can take out individual daily sickness allowance insurance without a medical examination within three months after the termination of the insurance cover provided by their previous employer s daily sickness allowance insurer.

14 14 Ordinary retirement Ordinary retirement AHV/IV Pillar 1 You are entitled to a full pension from the age of 65 for men and 64 for women if you have a full contributory period. The full pension receivable depends on the contribution amounts paid in but amounts to at least CHF 14,100 per year (CHF 1,175 per month) and at most CHF 28,200 per year (CHF 2,350 per month. The Federal Council generally adjusts the pensions every two years to reflect increases in the cost of living. Pensions will be reduced if the contributory period is incomplete. Make sure you register for your pension in time i. e. two to three months before your retirement so the first pension payment can be transferred on time. The last AHV compensation office to calculate your contributions is responsible for this. BVG Pillar 2 The amount of your retirement pension generally depends on the retirement assets available at the time of retirement. You can have minimum one-quarter of your retirement assets paid out as a one-off lump-sum payment. If permitted by the pension regulations, you can also request a lump-sum settlement instead of a pension, although restrictions apply if you have paid into your Pillar 2 plan within the three years leading up to retirement. If a full lump-sum withdrawal is made, any claims you have against your pension fund will expire, including any claims for survivor benefits in the event of your death. Provide your pension fund with the necessary information for transferring the pension. Please note that the pension fund may set a deadline for claiming the lumpsum settlement. AVIG Unemployment insurance Insurance cover lapses once you reach the AHV retirement age.

15 Ordinary retirement 15 UVG Accident insurance Retirees are no longer subject to accident insurance. People who previously worked more than eight hours per week for the same employer benefit from the 31-day extension of cover mentioned above. The above remains subject to the provisions of international agreements. You can extend your insurance cover for non-occupational accidents within 31 days of leaving your previous employer s UVG insurance scheme (e. g. with Suva or a private insurer) by taking out an interim insurance with your previous employer s UVG insurer for a maximum of 6 months. Add to your existing individual accident insurance cover with a private insurer or a health insurance fund. Private daily sickness allowance insurance Insurance cover lapses when you leave the group of insured persons of your previous employer. Benefits for existing illnesses are provided according to the terms and conditions of the contract.

16 16 Early retirement Early retirement AHV/IV Pillar 1 Entitlement to an AHV retirement pension begins at the age of 64 (women) or 65 (men). You can begin drawing your retirement pension one or two years earlier. The pension will be reduced by 6,8% per year. Register early with the cantonal compensation office or the local AHV office at your place of residence. If you retire early, you are considered a non-gainfully employed per-son and must continue paying AHV contributions. If you do not, you could lose contributory years and, with them, your entitlement to a full pension. The minimum contribution is CHF 478 (incl. IV/LECA) per year. BVG Pillar 2 You can retire starting at the age of 58 if allowed by your pension fund s regulations. The amount of your retirement pension generally depends on the retirement assets available at the time of retirement. If you retire early, you will have fewer retirement assets that have to last for additional contributory years, which will reduce the pension accordingly. You can generally also receive the retirement pension as a lump-sum settlement upon early retirement if permitted by the pension regulations and if the request is made in time. Restrictions apply, if you have made additional voluntary contributions to your Pillar 2 plan within the three years leading up to retirement. If a full lump-sum withdrawal is made, any claims you have against your pension fund will expire, including any claims for survivor benefits in the event of your death. Provide your pension fund with the necessary information for transferring the pension. Please note that the pension fund may set a deadline for claiming the lumpsum settlement. AVIG Unemployment insurance If you choose early retirement, the right to benefits under the unemployment insurance expires from that date. An exception is made for people who retire early but still want to work as an employee. You may be entitled to unemployment benefits under certain circumstances in this case. Contact the employment office at your place of residence for information if you wish to continue working as an employee.

17 Early retirement 17 UVG Accident insurance Retirees are no longer subject to accident insurance. People who previously worked more than eight hours per week for the same employer benefit from the 31-day extension of cover mentioned above. The above remains subject to the provisions of international agreements. You can extend your insurance cover for non-occupational accidents within 31 days of leaving your previous employer s UVG insurance scheme (e. g. with Suva or a private insurer) by taking out an interim insurance with your previous employer s UVG insurer for a maximum of 6 months. Add to your existing individual accident insurance cover with a private insurer or a health insurance fund. Private daily sickness allowance insurance Insurance cover lapses when you leave the group of insured persons of your previous employer. There is no temporary extension of cover. Benefits for existing illnesses are provided according to the terms and conditions of the contract. You generally do not need to make any provisions. If necessary, you can take out individual daily sickness benefits insurance. Last revised in January 2017

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20 Baloise Insurance Ltd Baloise Life Ltd Aeschengraben 21, P.O. Box CH-4002 Basel Customer Service e 2.17 pdf