Subsidies

Since the entry into force of the LOB law, the Guarantee Fund has effected equalisation by means of subsidies in favour of employers with a disproportionately large number of older staff and which are confronted with a particularly heavy burden because of the graduated savings contributions under LOB (unfavourable age structure).

The subsidy is paid to the benefit scheme.

Entitlement to a subsidy exists in cases where the sum of all pension credits pursuant to LOB of all the employees of a particular employer exceeds 14% of the sum of the corresponding coordinated wages.

The subsidies are calculated each year on the basis of the previous calendar year.

Self-employed persons are only taken into account for calculation of subsidies if they:

  • Take up voluntary insurance within one year of entry into force of the law or start of self-employment or
  • were subject to compulsory insurance for at least six months and took voluntary insurance immediately afterwards.

 

Employer with several benefit schemes

Benefit schemes may only claim subsidies if all the personnel of the affiliated employer have compulsory insurance with them. In this case the subsidy is claimed in the framework of a contribution settlement with the Guarantee Fund.

 

 

 

Employer with one BS

Benefit schemes may only claim subsidies if all the personnel of the affiliated employer have compulsory insurance with them. In this case the subsidy is claimed in the framework of a contribution settlement with the Guarantee Fund.

 

Employer with several BS

If the employer is affiliated to several benefit schemes for the provision of compulsory benefits, he is the applicant.

The employer must notify all participating benefit schemes of the fact that he is affiliated to several benefit schemes.

The benefit schemes report to the employer the sum of coordinated wages and pension credits of his employees (green Form SF3).

The benefit scheme auditor confirms the accuracy and completeness of the details. For the calculation of the age structure, the entire personnel of the employer with different benefit schemes is the determining factor. The employer collates the notifications of the benefit schemes (Form SF 3) on the yellow form
(SF 4)
and submits Form SF 4 with the notifications of the benefit schemes (SF 3) to the Guarantee Fund business office.

LOB Guarantee Fund
Business Office
Eigerplatz 2
Postfach 1023
3000 Berne 14

The subsidies are then distributed directly to the entitled benefit schemes. 

Practical example (the figures are theoretical, as are the underlying values)