Does your company have optimal social benefit coverage?

In Switzerland, the only official document providing those insured with information on their situation is the Pension Fund Certificate that is issued annually. The old age and survivors' insurance (AVS) and accident insurance do not follow the same system.

The CBS approach is considered to be global as it takes into consideration all the players in the pension fund and insurances sector. Qualibroker-Swiss Risk & Care is the only broker to offer this approach in Switzerland, although this type of analysis has long existed abroad.

The question of coordination is rarely taken into consideration, while it could lead to substantial savings for corporations. There are two reasons for this:

1. The various experts do not talk to each other; particularly the experts in occupational pension plans (LPP) and brokers. This prevents employers and employees from having a clear vision of their own social coverage. In Switzerland this problem is accentuated by the fact that pension plans and companies are entirely separate from a legal point of view. These two worlds have no communication between them. At Qualibroker-Swiss Risk & Care we have a great advantage in the management of social insurance coverage as, for the last 30 years, we have combined the savoir-faire of the broker with that of the LPP expert (actuary).
2. The rules of coordination are particularly complicated, due notably to the complexity of the calculations and the diversity of the possible scenarios. Qualibroker-Swiss Risk & Care has developed an IT application that includes all the data of Swiss law, as well as the calculation of AVS, AI, accident insurance, Pillar 2 and supplementary insurances.

This comprehensive approach was the first realised with the Individual Social Report (ISR), a document that is clear, concise and summarizes the remuneration, pension provisions and benefits of each employee in your company.

The rules relating to Swiss social insurance coordination

When disability is caused by an accident, the disability insurance (AI) is the first to pay benefits, followed by the compulsory accident insurance and, finally, the pension fund. In some cases, almost all the benefits are paid by the AI and the accident insurer. In general, disability following an accident is therefore largely covered by the Pillar 1 and by the compulsory accident insurance. The pension fund often remains inactive.

In this case, between the AI, the compulsory accident insurance, the supplementary accident insurance and the Pillar 2, the employer pays four contributions, while the employee will never receive more than 100% of their salary. Meaning that savings can be made by both the company and the employees.

It is not just in the case of accident insurance that savings are possible. Depending on what is foreseen under the pension fund's rules and regulations, it is also the case for disability due to illness. Naturally, one cannot earn more after becoming disabled than when working.

Thanks to the CBS, any shortcomings are also revealed: the consequences of an accident, for example, are over-insured, while it is the opposite in the case of illness. Certain categories of people, depending on their family situation or salary, have better coverage overall than others, etc. The employer can therefore correct what can be corrected in advance and this may be the way to ensure that each franc spent on social insurance is put to good use.