The old age, survivors’ and invalidity insurance system is based on three
pillars:
1) Basic old age, survivors’ and invalidity insurance (AHV-AVS/IV-AI)
Men are entitled to an old age pension at the age of 65 and women at the age
of 64. It is possible to retire one or two years before the statutory retirement
age, in which case the pension is reduced by 6.8% for each year of early
payment, or to defer retirement for one to five years beyond the statutory
retirement age, in which case the pension is increased by between 5.2% and 31.5%
depending on the number of months by which payment is deferred. Old age
pensioners are entitled in certain circumstances to receive a pension for
children and/or a supplementary pension for a spouse.
Surviving spouses who have one or more children at the time of their spouse’s
death are entitled to a widow’s or widower’s pension. In addition, a
childless widow who has reached the age of 45 at the time of her husband’s
death and was married for at least five years is entitled to a widow’s
pension. Entitlement ends upon remarriage, death or, in the case of a widower,
when his youngest child reaches the age of 18. The children of the deceased are
entitled to an orphan’s pension. This entitlement ends when the child reaches
the age of 18, or 25 if in education or training, or upon the orphan’s death.
Invalids who are at least 40% disabled are entitled from the age of 18 to an
invalidity pension, the level of which varies according to the degree of
invalidity. Those receiving an invalidity pension are entitled to a pension for
each child who would qualify for an orphan’s pension when they die.
2) Occupational benefit scheme
Men are entitled to an old age pension at the age of 65 and women at the age
of 64. Those receiving an old age pension are entitled to a pension for each
child who would qualify for an orphan’s pension when they die. Surviving
spouses who, on the death of their spouse, have at least one child or have
reached the age of 45 and were married for at least five years are entitled to
benefit. Entitlement ends upon remarriage or death. The children of the deceased
are entitled to an orphan’s pension. This entitlement ends when the child
reaches the age of 18, or 25 if the child is in education or training or is at
least 70% disabled, or upon the orphan’s death.
Invalids who are at least 40% disabled are entitled to an invalidity pension,
which varies according to the degree of invalidity. Those receiving an
invalidity pension are entitled to a pension for each child who would qualify
for an orphan’s pension when they die.
3) Individual benefit scheme
An individual old age pension can be arranged by concluding a contract for a
‘linked’ benefit scheme with an insurance company or a banking institution
or by taking out a life insurance policy. Tax relief is granted on ‘linked’
benefit schemes. The terms, benefit amounts and other conditions depend on the
product chosen.
NB: For the purposes of social insurance law, registered civil partnerships of
homosexual couples are deemed equivalent to marriage for as long as they last; a
surviving registered partner is treated as a widower and judicial dissolution of
the registered partnership is deemed equivalent to divorce.
Text last edited on: 11/2007
Source: European Union
© European Communities, 1995-2008
Reproduction is authorised.
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