Disability benefits
Disability denotes a long-term (full or partial) incapacity for work which persists for a prolonged period or is expected to continue indefinitely.
The ruling of the Swiss disability insurance (Eidg. IV) serves as the criterion for acknowledging the state of disability and for defining the degree of disability.
| Degree of invalidity (Eidg. IV) | Disability pension entitlement |
|---|---|
| Below 25% | not eligible |
| Over 25% | 25% of a full pension |
| 41% | 27.5% of a full pension |
| 42% | 30% of a full pension |
| 43% | 32.5% of a full pension |
| 44% | 35% of a full pension |
| 45% | 37.5% of a full pension |
| 46% | 40% of a full pension |
| 47% | 42.5% of a full pension |
| 48% | 45% of a full pension |
| 49% | 47.5% of a full pension |
| 50% - 69% | The percentage of the pension entitlement corresponds to the degree of disability. |
| Over 70% | a full pension |
The disability pension entitlement is duly adjusted if any changes are made to the degrees of invalidity system by the disability insurance body.
Entitlement to disability benefits
Persons who have not yet reached retirement age are eligible to claim a disability pension. The entitlement to the disability pension begins when the invalidity is acknowledged by the Swiss disability insurance (Eidg. IV). The payment of the disability pension is deferred until the 1st day of the month following the discontinuation of salary payments or the expiry of the entitlement to salary cover (e.g. daily sickness benefit or disability allowance).
The entitlement shall expire on the death of the insured party or on the cessation of the disability.
Disability benefit
The full disability pension is equal to the projected old-age pension at the age of 65 (for men and women). This pension is calculated in two steps:
- Extrapolation of the projected retirement assets at the age of 65: the retirement assets attract interest until the age of 65 plus the future old-age pension credits until the age of 65.
- Calculation of the projected old-age pension at the age of 65: the projected retirement assets are multiplied by the conversion rate at the age of 65, making up the projected old-age pension or lifelong disability pension.
If the full disability pension does not amount to 60% of the insured earnings when calculated in this way, the person will be eligible for a disability pension supplement. This ceases to apply when the person reaches the age of 65 (for men and women).
Anyone drawing a disability pension is eligible for a disability-related pension for each child who could claim an orphan’s pension in the event of their death. The annual disability-related pension for each child is 1/6 of the current disability pension.