Organisation and financing of invalidity insurance
financing of IV/AI
AI/IV is financed on a pay-as-you-go basis. In other words, current AI/IV expenses are paid directly with current revenues. These come largely from insureds and their employers. Insureds have 0.7 per cent deducted from their salary. Their employers pay in exactly the same amount. Self-employed persons contribute 1.4 per cent of an income above CHF 60500. Those earning less pay lower contributions.
he AI/IV contribution paid by persons who are not in gainful employment depends on their assets and any pension income.
The federal government covers around 38 per cent of AI/IV expenses.
How invalidity insurance is organised
nvalidity insurance (IV/AI) is handled by the cantonal IV/AI offices and the IV Office for the Insured Resident Abroad (OAIE). Each canton has its own IV/AI office. How these are organised may differ depending on the canton. The IV/AI offices work with the OASI offices.
The FSIO is the steering and supervisory body of the IV/AI scheme. It is responsible for the technical, administrative and financial oversight of the IV/AI offices and ensures the uniform application of the law at national level. It develops foundations for the strategic orientation, legislation and implementation of the IV/AI which it submits to the Federal Council and Parliament. It also sets out criteria and guidelines for the IV/AI offices and verifies their compliance with these criteria. It conducts annual audits of the IV/AI offices. It also examines and approves the estimates and financial plans as well as the annual accounts of the IV offices.
The IV/AI offices handle all invalidity insurance matters. They determine eligibility for the benefits the IV scheme provides. They provide integration-oriented counselling, early intervention, integration measures, and occupational measures. The IV/AI offices are also responsible for determining the degree of invalidity and helplessness of applicants, and rule on benefit decision appeals.
All applicants generally have to undergo a medical examination to determine their eligibility for IV/AI benefits. These tests assess the damage to the person's health and the impact it has on their capacity to work. The regional medical services (RAD) are responsible for reviewing the medical reports and assessments and shares their conclusions with the IV/AI offices. They also perform medical examinations.
The OASI offices supply the IV/AI offices with the basic information, such as contribution records, which they need to determine the insurance requirements for the award of IV/AI benefits. Based on pension and daily allowance awards made by the IV/AI offices, the OASI offices calculate pension and daily allowance rates and issue decisions on benefit entitlement. They are also responsible for paying pensions, daily allowances and helplessness allowances for adults.
The Central Compensation Office is a federal body which handles matters relating to the first-pillar insurance (OASI) scheme. It keeps and manages a central register of benefit claimants. The CCO is responsible for paying invoices pertaining to IV/AI benefits in kind which the IV/AI offices receive from physicians, hospitals, rehabilitation centres and suppliers of medical aids. It also pays out helplessness allowances for minors. The IV/AI Office for the Insured Resident Abroad (OAIE) is part of the CCO.
