Observation (CEACR) - adopted 1993, published 80th ILC session (1993)

Invalidity, Old-Age and Survivors' Benefits Convention, 1967 (No. 128) - Switzerland (Ratification: 1977)

1. The Committee notes with interest the information supplied by the Government in its report. In particular, it notes with interest the entry into force on 1 January 1992 of the amendment to section 33(ter) of the Federal Old-Age and Survivors' Insurance Act, under which, if there is an annual increase of over 4 per cent in the Swiss consumer price index, the Government is no longer limited to adjusting ordinary old-age, survivors' and invalidity benefits only once every two years.

2. Part II (Invalidity benefit), Article 12 of the Convention (in conjunction with Article 32, paragraph 1(e)). In its previous comments, the Committee raised the question of the compatibility with the Convention of section 7 of the 1959 Federal Invalidity Insurance Act (LAI), under which cash benefits may be temporarily or permanently refused, reduced or withheld where the invalidity has been caused or aggravated by the serious misconduct of the insured person or his dependants. As the Committee has already pointed out, the suspension of benefits is authorized under Article 32(e) of the Convention only when the contingency has been caused by serious and wilful misconduct on the part of the person concerned.

In its reply, the Government indicates that it is planned to abolish the reduction of benefits in the event of serious negligence of the insured person in the Bill on the general part of Swiss social insurance law - which was drawn up by the Committee of the Council of States on the basis of a draft prepared by the Swiss Insurance Law Society and currently being examined. It adds, however, that the Federal Council has a number of priorities including the tenth review of the Federal Old-Age and Survivors' Insurance Act, the reviews of the Federal Sickness Insurance Act and the Federal Occupational Insurance Act and the examination of the relationship between the compulsory basic pension scheme and the compulsory occupational pension scheme. Accordingly, although the Federal Council generally approves the Bill drawn up by the Committee of the Council of States, it would like the review of the above-mentioned Acts to be completed before Parliament debates the new Bill. The Committee takes note of this information. In this connection, the Committee also notes the observations of the Swiss Federation of Trade Unions (USS) communicated to the Government on 12 February 1993. According to the USS, the Federal Council issued an opinion with reservations of the Bill and asked Parliament to suspend its work. While it is aware that the Government has priorities, the Committee none the less reiterates the hope that the Bill on the general part of social insurance law will be adopted shortly and that it will take full account of the above-mentioned provisions of the Convention, on which the Committee has been commenting for many years. It would be grateful if the Government would provide information in its next report on any developments in this respect.

3. Part VII (Miscellaneous provisions), Article 42 (in conjunction with Article 15, paragraph 3). In its previous reports, the Government indicated that the lowering of the age of retirement for certain categories of workers would be examined by the Federal Committee responsible for the tenth review of old-age insurance. The Committee expressed the hope that, in the review, the retirement age of persons engaged in arduous or unhealthy work (currently 65 years for men) would be lowered, in accordance with the provisions of the Convention.

In its reply, the Government states that there have been no new developments during the period covered by the report. The USS, for its part, recalls that, as part of the tenth review of old-age insurance (AVS) currently in process in Parliament, the Committee of the National Council plans to raise women's retirement age to 64. The USS is against this amendment and demands that all questions relating to retirement age and the long-term financing of insurance, particularly in view of demographic trends, be dealt with in the eleventh review of the AVS. In addition, it considers that any reductions in benefits that may be introduced in the event of early retirement would be in breach of Articles 17 and 18 of the Convention. The Committee takes note of this information. Since there has been no change in the situation, the Committee can but reiterate the hope that the Government's next report will contain information, in accordance with the provisions of Article 42, paragraph 2, of the Convention, on progress made towards lowering the age of retirement for certain categories of workers engaged in arduous or unhealthy work. It also reiterates the hope that any reductions of benefits in the event of early retirement will not affect the application of Articles 17 and 18 of the Convention in respect of this category of workers.

4. Part V (Standards to be complied with by periodical payments) in conjunction with Part III (Old-age benefit). The Committee notes the information provided by the Government in reply to its previous comments on old-age benefit rates. It notes in particular the statistical information which also takes into account the benefits granted under the Federal Occupational Insurance Act (LPP). Furthermore, the Committee notes with interest the Government's statement that measures have been taken which, for part of the population, will improve the relationship between incomes and benefits, such as the new benefit formula to take effect from 1 January 1993. The Committee would be grateful if in its future reports the Government would continue to provide information, including statistics, on any developments in this respect and on the result of the studies which, according to the Government, are to achieve fully the objective laid down in article 34 quater of the Federal Constitution.

[The Government is asked to report in detail for the period ending 30 June 1993.]