Saturday , April 17 2021

Supplementary benefits instead of social assistance for more than 55 years – Switzerland: Standard

The Swiss Social Assistance Conference (SKOS) requires supplementary benefits for older unemployed rather than social assistance. The proposal was implemented quickly and economically viable, as shown by two expert reports prepared in the name of Skos.

Only one of the seven people of the 55-year-old population will find work again with a minimum wage, explained Skos at a press conference on Monday.

In order to prevent these people from definitively falling from the labor market and social assistance is forced, they should also be placed in the labor market after being subject to unemployment insurance, the Skos requirements. If this fails, they should receive supplementary benefits instead of social assistance.

The main objective of the Skos proposal is that older people can find a job again with the help of the Regional Employment Centers (RAVs). This is not about early retirement. Complementary services should only receive those who continue to look for a job and have worked for a long time before modulation.
With the supplementary benefits, however, the elderly people who were eliminated would be better treated than they are today. At the same time, they would be protected from the poverty of old age, said co-chairman Felix Wolffers on demand.

Additional costs of 25 million francs

Skos also performed cost calculations. Every year, about 4,000 people aged 57 to 62 are registered in Switzerland. According to the calculations of an independent consulting company, the additional costs of the new supplementary services would amount to a net amount of 25 million CHF.

The average annual cost of the period from 2020 to 2029 was estimated at 298 million francs, and supposes that the efforts of RAV integration and national priority were effective. In return, spending on social assistance could save just under 140 million CHF. The additional costs amounted to about 160 million francs.
The new system could prevent people from reducing their old age at an early stage, which means savings of AHV supplements of 133.8 million CHF over almost 21 years.

298 million Swiss francs of additional payments would be compensated for 139 million Swiss francs in social assistance expenses and 134 million Swiss francs in complementary benefits under AHV. This solution would lead to relief for cantons and communities and an additional moderate burden on the federal government.

Adaptation in the Act of Complementary Action

Skos also produced a proposal to adapt existing legislation, which is also in line with EU law. The proposed regime improves the situation of people living in Switzerland, but prevents the export of services to the EU. The solution was not sought for people over 55 in the context of unemployment insurance, but in the law on supplementary benefits.

Specifically, a new article is proposed in the Supplementary Action Law (ELG). According to the control of the unemployment insurance, they should be entitled to complementary benefits, which have completed the age of 57, can mediate and be registered in the regional employment service.

Another condition is that the beneficiaries have insufficient working or replacement income to cover the expenses recognized immediately before the age of 55 or, in case of subsequent unemployment, immediately before the start of the benefit period, for at least ten years of income compatible with AHV in the average amount of a half and a half pension from the AHV. (Nag / sda)

Created: 05.11.2018, 11:25 clock

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