Swiss Review 1/2020

Swiss Review / January 2020 / No.1 26 news.admin.ch What happens to my old-age and survivors’ insurance (OASI) if I live and work abroad? If you live and work abroad and wish to maintain your contributions to the OASI scheme, you can join the voluntary old age and survivors’ insurance/invalidity insurance (OASI/DI). By doing so, you will avoid substantial pension reductions. The best way to explain this is with examples. Let’s take a look at the case of Mr A first: he is being seconded by his employer, whose headquarters are in Rapperswil, to a subsidiary in China for three years. According to the social security insurance agree- ment between Switzerland and China, his employer will continue to make social security payments dur- ing this time. This means that Mr A will still have health insurance in Switzerland and remain a part of the statutory occupational pension scheme (second pillar). Mr Awill also continue to draw family allowances from Switzerland. On arrival in China Mr A must submit the second- ment certificate from his OASI com- pensation office. By doing so, he is providing proof that he is under no obligation to insure himself in China. However, what happens in the case of Mrs B, the wife of Mr A? She will care for their two prima- ry-school-age children while the fam- ily is living in China. This means she can apply for seamless continuation of her OASI/DI/APG insurance aswell. To do so, she must apply to join the OASI compensation office of Ano later than six months after moving abroad. However, Mrs B cannot continue her compulsory insurance while she is in China if she accepts a jobwith an employer whose registered office is in China. In this case, the same rule ap- plies for her and all other employed people who – unlike Mr A – are not seconded. They can join the volun- tary OASI/DI. If they do so, they can draw a pension when they reach re- tirement age, just like people who are insured in Switzerland. With her con- tributions to the voluntary OASI/DI, the now employed Mrs B can thus close the contribution gaps and avoid significant reductions in her OASI pension. Deadlines apply in this case. Mrs B is obliged to submit a member- ship application within one year of leaving the compulsory OASI/DI/APG insurance scheme. Contributions to the voluntary OASI/DI scheme are determinedbased on the annual income earned and/or income from self-employment. From 1 January 2020, the annual contribu- tion to the voluntary insurance scheme is 10.1 percent of the annual salary. For unemployed people, the amount depends on their assets and any pension income. The minimum annual contribution is 950 Swiss francs. The Swiss Compensation Office (SCO), which pays OASI pensions to in- sured persons resident abroad is also responsible for the use of the volun- tary OASI/DI scheme. Further infor- mation on voluntary OASI/DI insur- ance and on membership conditions is available at www.zas.admin.ch (cf. under “Private voluntary OASI/DI in- surance”). Explore the world as a Swiss chef: if you work abroad, you should check the fine print of your pension scheme carefully. Photo: Keystone For further information: sedmaster@zas.admin.ch, or telephone +41 58 461 91 11. (ZAS) ✆ from Switzerland +41 800 24 7 365 ✆ from abroad +41 58 465 33 33 E-Mail: helpline@eda.admin.ch Skype: helpline-eda www.eda.admin.ch/reisehinweise ✆ from Switzerland +41 800 24 7 365 ✆ from abroad +41 58 465 33 33 www.twitter.com/travel_edadfae Online registration for Swiss citizens travelling abroad www.fdfa.admin.ch/itineris App available for free for iOS and Android Travel advice Plan well. Travel well.