Old-age and survivors' insurance (Liechtenstein)
The Old Age and Survivors Insurance ( OASI ) is obligatory pension insurance in the Principality of Liechtenstein . Together with the disability insurance and the family equalization fund, it forms the first pillar of the Liechtenstein three- pillar system and serves to adequately secure the subsistence needs. The AHV has the character of a solidarity work.
The normal retirement age for men and women is 64 years of age.
Until then, the following transitional regulation applied:
- For women born between 1941 and 1945, the retirement age was 63.
- For women born in 1940 and older, the retirement age was 62.
- For men born in 1935 and older, the retirement age was 65.
From the age of 60, pensions can be drawn with corresponding reductions.
Origin and history
Article 26 of the new constitution of 1921 says: "The state supports and promotes health, old-age, disability and fire insurance." Survivors' insurance is not specifically mentioned.
Based on the constitutional mandate, the government had Herman Renfer (Director of Basler Lebensversicherung) prepare a comprehensive report on the introduction of social security in 1992. In view of the precarious economic situation in the twenties, the project was not pursued any further.
In 1938 the government asked various private insurance companies whether they would be interested in reinsuring a Liechtenstein old-age insurance. The Schweizerische Rentenanstalt prepared a project study. The political developments at the beginning of the Second World War then set other priorities.
In 1948 the AHV was introduced in Switzerland. That gave the impetus for Liechtenstein. The Liechtenstein government commissioned Swiss experts to carry out the assessment (Walter Saxer) and the actuarial analysis (Werner Gysin). Despite initial concerns from the government and the state parliament, the government then had a detailed draft law drawn up (Hans Nef). Based on the expert opinion, a bill is drawn up in 1949.
In 1952, the AHV bill was passed without a dissenting vote in the state parliament and submitted to the people for a vote. The AHV law is adopted with 1574 yes against 1366 no. The law on old-age and survivors' insurance comes into force on January 1st. According to the original concept, the AHV was intended as a basic insurance. The pensions paid out in the 1950s were quite modest and at first could not be more than a contribution to the upkeep of the elderly and survivors. The law on supplementary benefits to AHV and IV, from 1965, which guaranteed pensioners a certain minimum income, brought a decisive improvement for less well-off pensioners residing in Liechtenstein.
A first step in terms of living pensions were the pension increases in the early 1960s. Another improvement came in the 1970s when pensions were more than doubled in two stages in 1973 and 1975. In 1992, in contrast to Switzerland, the Christmas bonus was introduced, initially in the amount of an additional payment of 25% to the December pension. In 1994 the Christmas bonus was increased to 50% and in 1998 to 100% of the December pension. With the revision of the law "Equal rights for men and women in the AHV", a significant change in the system was implemented through the transition from the married couple pension system to the individual pension system. In the course of equal rights, the regular retirement age was also adjusted (64 years for women and men, but only after the transition period has expired). In addition, in 1997 the possibility was introduced to withdraw the old-age pension by 1 or 2 years.
With the improvement of the possibility of early retirement (from age 60, mild reduction rates, early retirement pension available every month, early withdrawal of a partial pension), a gradual exit from working life was made possible.
In order to reorganize the state budget, the state parliament decided in November 2011 to reduce the state contribution to the AHV from 2015 and to stop it entirely from 2018 (to maintain the pressure). To compensate for this loss of income, corrections were also made on the benefit side: return to actuarial reduction rates for early retirement pensions (for those born in 1956 and younger), pensions inflation adjustment exclusively to the price index (previously: mean value between wage and price index). In addition, from 2012 premium income was shifted from the FAK to the AHV (0.2 wage percent).
The AHV reform in Liechtenstein is currently being discussed.
Web links
Individual evidence
- ↑ retirement age . Liechtenstein AHV – IV – FAK. Retrieved January 20, 2019.
- ↑ Leaflet on the calculation of pensions (PDF) Liechtensteinische AHV – IV – FAK. August 1, 2016. Retrieved January 20, 2019.