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  • Social insurance news

    13.12.2021 | Priska Schnell
    In the shadow of the pending OASI and LOB reforms, progress has been made with disability insurance (IV) reform, which will enter into force in 2022. And parents of seriously ill or injured children will now be granted paid leave to care for them.
iv-reform-betreuungsurlaub

Social insurance news

13.12.2021 | Priska Schnell
iv-reform-betreuungsurlaub
In the shadow of the pending OASI and LOB reforms, progress has been made with disability insurance (IV) reform, which will enter into force in 2022. And parents of seriously ill or injured children will now be granted paid leave to care for them.

The IV reform and its effects as from 2022

In implementing the “Further development of disability insurance (IV)” reform, the aim of Switzerland’s Federal Council and parliament is to enhance the IV system. The focus is on promoting integration into the work process, above all in the case of young insureds and adults with a psychological illness, and on measures to prevent a disability in the first place. The reform also provides for the introduction of a seamless pension system.

grafik-1-invalide-rentner-en

The new pension system will be applied in cases where the degree of disability is from 40% to 69% inclusive. As well as being fairer, it strengthens the incentive to increase working hours. Under the previous four-stage pension system, working more hours held little appeal for many disability pensioners since threshold effects meant that their total income did not increase. The new system also applies to disability benefits paid by pension funds.

grafik-2-stufenloses-rentensystem-en

For existing disability pensions, transitional solutions are available that – depending on the age of the person concerned – provide for other measures.

Paid leave to care for others (LEC)

Leave to care for others has been available under the loss of earnings compensation (LEC) scheme since July 2021. It is available to employed or self-employed parents of seriously ill or injured children who have to take a career break in order to care for the latter. The compensation is governed by the LEC and is modelled on the maternity allowance. Care leave can last for a maximum of 14 weeks within a framework period of 18 months. The leave can be divided between the parents.

This type of care leave is distinct from minor cases for which parents can take leave to care for dependants (Art. 329h CO). The latter can last for a maximum of three days per event and amount to a maximum of ten days per year.

IV reform, paid leave to care for others (LEC)

Transitional provisions for existing disability pensioners and all the details of leave for parents to care for their children (LEC) can be found in “Helvetia – News on the 2nd pillar 2022”, in the section entitled “Market and social insurance”.

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