Questions & Answers
Questions on functioning and organisation:
No, compenswiss is an independent public law institution of the Confederation that manages the OASI, InvI and LEC social security funds. Its supreme governing body is the Board of Directors, which is elected by the Federal Council. compenswiss is located in Geneva.
All OASI, InvI and LEC contributions are paid to compenswiss. It therefore receives all income.
The money required to pay all statutory OASI, InvI and LEC benefits due is made available by compenswiss. The institution is therefore also debited for all expenses.
|Central Compensation Office|
|Cantonal and professional compensation offices|
The social insurance schemes (OASI, InvI and LEC) 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" (OASI, InvI and LEC) 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 (OASI and InvI) depends on the total sales of products subject to value added tax.
The income from casino tax (OASI) depends on the turnover of these institutions.
Only the contributions paid by the Confederation (OASI and InvI) 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 LEC 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 OASI, InvI and LEC can almost never be in balance.
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.
compenswiss is the central manager of the funds and assets of the old age and survivors’ insurance (OASI), the invalidity insurance (InvI) and the the loss of earnings compensation scheme (LEC).
compenswiss has two core tasks:
1) Ensure that the OASI, InvI and LEC benefits can be paid at all times.
2) Invest the assets safely and achieve a return consistent with market conditions.
The Board of Directors must also submit the annual report with the balance sheets and the operating statements of compenswiss to the Federal Council.