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compenswiss is the central manager of the funds and assets of the Federal Old Age and Survivors' Insurance (AHV), the Federal Disability Insurance (IV) and the Income Compensation Scheme (EO).




How are these insurance schemes organised?

Is compenswiss part of the Federal Administration?

What does "central asset management" mean?

Why is there a need for "assets"?

How did the operating result and the comprehensive result develop over the past few years?

Does compenswiss have any other duties?





How are these insurance schemes organised?



Political bodies Federal Council
Federal Parliament
Administration Federal Social Insurance
Office (BSV)
Voters
Federal Social Insurance Office (BSV)
Central Compensation Office
Compensation offices of the cantons and associations
Cantonal Disability Insurance offices IV
compenswiss



Is compenswiss part of the Federal Administration?

No, compenswiss is an independent, public law institution established by the Confederation according to the Federal Act on the Institution for the Administration of the Swiss Federal Social Security Funds AHV, IV and EO (Social Security Funds Act). It is managed by a Board of directors appointed by the Federal Council. Its seat and its staff are located in Geneva.


What does "central asset management" mean?

All AHV, IV and EO contributions are paid to compenswiss. It therefore receives all income.

The money required to pay all statutory AHV, IV and EO benefits due is made available by compenswiss. The institution is therefore also debited for all expenses.

The following graph provides a simplified view of the interconnections:
 
 
Compensation offices Central Compensation Office compenswiss




Why is there a need for "assets"?

The social insurance schemes (AHV, IV and EO) are financed by a pay-as-you-go system. The income is used to finance the benefits. The laws regulate the income and benefits separately. This means that the benefits do not depend on the amount that is received, and the contributions are not determined on the basis of the benefits that must be provided.

Income and benefits are influenced by a number of factors that exert variable influences at different times:

The income received in the form of a "percentage of salary" (AHV, IV and EO) depends on the total wages and salaries paid to Swiss employees and the income earned by self-employed individuals in Switzerland.

The income received from the value added tax (AHV and IV) depends on the total sales of products subject to value added tax.

The income from casino tax (AHV) depends on the turnover of these institutions.

Only the contributions paid by the Confederation (AHV and IV) are determined on the basis of the actual expenses.

The expenses of the AHV are determined by the number of pensioners and the pension structure (retirement pensions for single persons and for married couples, widow's and orphan's pensions).

The expenses of the IV are mainly determined by the number of disability pensioners and the number of new people who become disabled.

The expenses of the EO are primarily determined by the number of days of military service and the number of births.

This situation means that the operating result that applies to the AHV, IV and EO can almost never be in balance.

Conclusion:
compenswiss’ assets or portfolio enable the institution to finance the statutory benefits even in years when it does not receive sufficient income. The assets therefore serve as a "cushion".




If the accounts close with a surplus of receipts at the end of a year, the assets increase. If they close with a shortfall, the assets decrease.




How did the operating result and the comprehensive result develop over the past few years?


Operating result in CHF million

 
Year: 2017


2016 Year


In million CHF

31.12.2017
OAI -1'039
II 797
IC -49

 



Comprehensive result in CHF million

 
Year: 2017


2016 Year


In million CHF

31.12.2017
OAI 1'087
II 1'122
IC 12

 

Does compenswiss have any other duties?

compenswiss has two core tasks:

1) To ensure that the AHV, IV and EO benefits can be paid at all times.

2) To invest the assets safely while providing market returns.

The Board of directors must also submit the annual report with the balance sheets and the operating statements of compenswiss to the Federal Council.







 
 
 
 

compenswiss | Legal framework