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Technical changes to improve the implementation of old age and survivors' insurance
Certain technical changes have been made to old age and survivors' insurance (assurance-vieillesse et survivants (AVS)) as from January 2012 pending a possible increase in the retirement age for women. The Federal Council has recently decided to implement those measures of the 11th revision of the old-age insurance which are not subject to dispute, in 2012.
The technical modifications should improve implementation of the AVS. In concrete terms, insured persons working in Switzerland for an employer located in another country will no longer get special treatment. They will no longer be treated as self-employed workers able to take advantage of the sliding scale, but will be expected to contribute at the same rates as other workers.
Another innovation concerns the maximum contribution for insured persons who are not gainfully employed. This amount, set at CHF8,400 since 1975, will increase to CHF19,350 in 2012. This corresponds to 50 times the minimum contribution. The maximum contribution applies to those with assets of at least CHF8.3 million.
In addition, pre-retirees will no longer have to be members of the Cantonal Compensation Fund, but may remain with their own institutions. The revision should simplify the collection of contributions and make it possible to establish a register of supplementary benefits.
Following rejection of the 11th revision of the AVS by Parliament, the Federal Council has separated the purely administrative aspects of the insurance system from those of a more political nature. Proposals for an in-depth reform are in the pipeline and should be submitted for approval in 2013. In the meantime, the Social Security Committee of the Swiss Parliament intends to submit a new proposal to increase the retirement age for women from 64 to 65 years of age.
Legislation date: 11.2011
Implementation date: 01.01.2012
Branch: Old age, Disability, Survivors