Topics:

• Social Security International
• IPP / IGP News - Rofenberg Foundation (Axa)
• IPMI News - Allianz Care
• In-depth IPMI RfP / Comprehensive benchmarking
• Section International Insurance Plans

Social Security International
ANobAG

Corona has accelerated the development of new cross-border forms of work, and digitalisation is making its contribution. One of these forms of work is employment as a so-called ANobAG, which means "employee without an employer liable to pay contributions" - translated, this means an employee who, for example, works in Switzerland for a company (employer) based abroad that does not have a branch/subsidiary in Switzerland.

How does this work with social security? The principle of the place of employment applies. The employee lives and works here in Switzerland, so social insurance must also be paid here.

Example: An employer in Sweden (EU) sends an employee to Switzerland. According to the ANobAG system, the employee pays both the employee and employer contributions - AHV/IV, ALV, EO, family allowances, UVG and BVG are compulsory; of course also the KVG, whereby the employer is not liable to pay contributions here. If the employer is not domiciled in the EU or EFTA, then the BVG is voluntary (possible via the supplementary institution).

The employer abroad must therefore add his pro rata social security contributions to the salary and pay them to the employee so that he can pay the full contributions.

It is also conceivable that the foreign employer registers directly with the OASI (AHV) compensation fund (cantonal compensation fund/employee's place of residence) and settles his contributions "normally" with the support of a trustee or payroll provider, thus relieving the employee. In general, the involvement of a trustee/payroll provider is likely to be necessary.

Taxes: The employee in Switzerland is "properly assessed" and taxed. Whether there is a permanent establishment and therefore also corporate taxes apply must be checked individually.

What is the situation in an international context, e.g. if an employee in the UK works for a Swiss company that does not have a legal entity in the UK? Here too, the place of employment principle applies, i.e. the obligation to pay social security in the UK. This is no different from the situation in Switzerland. Things get complicated when it comes to supplementary insurance “occupational benefits” (death, disability, retirement). In Switzerland, there is good coverage through the UVG and BVG. However, this is not the case everywhere abroad. Additional cover can then only be taken out via individual insurance policies, i.e. via the employee and not via the employer, as the insurer is not allowed by supervisory law to take out insurance with an employer domiciled abroad. The employer and the employee are therefore denied access to group solutions, which can be problematic depending on the country and situation.

IPP / IGP News - Rofenberg Foundation (Axa)
Changes as of 2022

The guideline on non-discrimination obliges Axa to set premiums on the basis of a gender-neutral unisex tariff from now on. The implementation of this guideline may lead to adjustments in the risk tariff. Depending on the portfolio, the premium may decrease or increase.

Furthermore, as of 1.1.22 (and then in a second step also as of 1.1.23) the pension conversion rates will be reduced (first to 5.4% and then to 5%).

There will also be a change in the composition of the Board of Trustees.

Please do not hesitate to contact us if you have any questions.

IPMI News - Allianz Care
Swiss Top-Up Solution ("VVG Standalone")

New solution from Allianz for groups with employees/family members subject to the KVG (these can be outbound delegates as well as inpats).

What's new: The Top-Up tariff applies regardless of which health insurance company the KVG is placed with. Allianz carries out the KVG subrogation (claiming the amount paid by the KVG) with every CH health insurance company. This may not work equally easily with all health insurers. However, this does not have any negative consequences for the insured.

The solution sounds promising.

In-depth IPMI RfP / Comprehensive benchmarking
Our services for corporates with a large IPMI group plan

Benchmarking large IPMI group plans (more than 150 lives) can be very complex, depending on the starting point. It is much more than a simple comparison of premiums and benefits. Only a detailed tender gives the company (and their expats) the certainty of having a market-compliant, regulatory-correct and competitive solution.

As IPMI specialists, we regularly carry out such comprehensive benchmarking projects. In doing so, we review and compare numerous aspects of an IPMI group contract. A few examples:

• Pricing / Underwriting Method
• Compliance (at employer and member level)
• Social security CH / KVG
• Service quality for employers and members (e.g. online tools)
• Continued insurance after leaving the group plan (outside CH and in CH)

The selection of the insurers to be invited is also decisive for the success of a tender. Depending on the expat population (geographical distribution/host countries, average age, number of singles/families, etc.) and customer-specific requirements, it may not make sense to invite certain providers for the tender from the outset. Conversely, there are constellations in which we ask insurers who would not be considered for a standard RfP.

In any case, at the beginning of such an RfP there is always a discussion with the client to understand the initial situation and the needs. This is the prerequisite for a successful RfP.

Section International Insurance Plans
International Group Protection (IGP) Plans

Insurance and pension solutions for internationally mobile employees are complex. In this and future issues of our newsletter, we would like to give you an overview of the solutions that companies can use to insure their internationally mobile employees.

These plans/products cover internationally mobile employees against the risks of death and disability.

For which categories of employees is such an IGP useful or necessary?
For expatriates who are not (or no longer) covered by Swiss social security (e.g. a third country national, a local foreign hire, a global nomad, a mechanic, etc.) and who work/live in a country whose social security/occupational pension plan (risk coverage) is insufficient.

Why does a company need an IGP plan?
Adequate death and disability cover is crucial, both for the employees and for the employer. A lack of risk protection (e.g. insufficient death cover for an employee with a family or insufficient disability cover for a young expatriate) is a very big risk for a company (keyword: employer's duty of care). It is not only a question of the amount of insured benefits, but also, for example, the definition of disability benefits (keyword: occupational disability, incapacity to work, partial disability, etc.).

Aim of such an IGP plan:
Ideally, such an IGP plan (from a Swiss perspective) replaces in a certain sense the social insurances AHV/IV, BVG/PK and UVG (i.e. the risk elements of these social insurances). With such an IGP solution, the employer has a solution for all expats who are not or insufficiently insured. The benefits (e.g. what is the amount of the disability pension? Lump-sum death benefit or partner's pension or both? etc.) can be chosen by the customer (more or less freely/flexibly).

In addition: The risk coverage can be combined with a savings plan (International Pension Plan/IPP), but it does not have to be. More information on the topic of "IPP" will follow in an upcoming newsletter.

If you have any questions or would like to discuss the topic of "IPP" in more detail with us, we look forward to hearing from you.