The revision to the "Continued development of disability benefits" was approved in the Swiss parliament in June 2020 and is expected to enter into force on 1st January 2022. The revision aims to facilitate the return to work and prevent disability. The revision of the legislation involves a closer monitoring of and assistance for children with congenital disabilities; it aims to provide specific support for young people transitioning to working life, and it extends the counselling and other support services relevant to people suffering from mental health issues. To achieve these objectives, a closer collaboration between doctors, employers and the disability benefits system is planned, as well as the introduction of a new linear annuity system.
The current tiered annuity system is to be replaced by a linear annuity system.
Source: Dispatch of 15.2.2017 on the amendment of the Federal Disability Insurance Act (further development of IV).
While the introduction of this system will increase the amount of disability annuity received by some insured persons, others may see their disability benefits reduce over the medium term. In order to mitigate these effects, the legislator has introduced a number of transitional measures for three groups of insured persons.
|Pensioners under 30 years old on 1 January 2022
|Pensioners between 30 and 54 years old on 1 January 2022
|Pensioners aged 55 and older on 1 January 2022
As these legal changes are only binding for the minimum BVG component, the Board will have a number of possibilities to consider. For example, whether the plan should be transferred to the new system, particularly in the case of a supra-mandatory plan (where benefits exceed the BVG minimum). Alternatively, the Board might decide that the new system only applies to the minimum BVG component, with the old system being retained for the supra-mandatory part.
While all of these options have advantages and disadvantages, some may be more complicated than others in their implementation and a case-by-case assessment will need to be made. But here are some initial thoughts for consideration:
Given the scope of the changes involved, the key point is to prepare as far in advance as possible. We therefore recommend that all Pension Funds address this topic now and already initiate discussions with the various stakeholders involved. We are happy to help with any questions you may have and to provide any support that you might need.