Yes to the thirteenth AHV: cross-border commuters' pension with double allowance (cross-border guide)

Context

Switzerland has approved a measure that could benefit retired frontier workers, or cross-border workers who carry out business activities in a Member State of the European Union, as well as their country of origin. The new law could be financed with an increase in VAT, but there seems to be no indication of the detail of financing.

Frontiers could benefit from an increase in pension advance without further development, which should be added to the one already recognized on the basis of the activity carried out in Switzerland of origin. For example, a frontier worker carrying out business activities in Switzerland and Italy could benefit from an increase in pension advance of up to 30,000 francs per year, according to the Italian and Swiss social cohesion scheme.

In Ticino, the measure could lead to an increase in pension advance for frontier workers with double allowances, which could benefit from an increase of up to 10,000 francs per year. For example, a frontier worker with an activity in Switzerland and Italy could benefit from an increase in pension advance of up to 10,000 francs per year, combining it with the pension recognised under the Italian regime.

This measure could have a significant impact on the financial stability of frontierers, which already face different challenges, such as asset management and any income tax. With the rise of pension advances, frontier workers may have more resources to invest or use for early retirement, improving their financial stability.

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Operational details

Switzerland has approved a measure that could benefit pensioners resident in Ticino, waiting to know the details. This decision is a great news for cross-border workers living in Switzerland and working and enrolling in pension in Italy or in other countries of the European Union.

The AVS project (Allgemeine Volksversicherung) was approved by the Swiss Federal Council and provides for the integration of pensions in Switzerland with that of European countries, creating a unified health insurance system. This step is essential for retired border guards, who will be able to access affordable healthcare and healthcare, without having to deal with additional medical expenses.

The AVS project provides for the creation of a common fund for the health insurance cover of retired frontier workers, which will be managed by the Swiss Confederation. This fund will use the contributions paid by pensions in Switzerland and the European countries to provide health benefits and health care at affordable prices to pensioners.

For pensioners living in Ticino, the AVS project could lead to a unified and more affordable pension, which could include health benefits and healthcare in Switzerland, Italy and other EU countries. There is no information at the moment when this measure enters into force, but it is expected to be by 2024.

For pensioners interested in the AVS project, it is important to follow carefully the information provided by the Swiss authorities and the Italian authorities, as well as to contact expert financial advisers to optimize their pension and health insurance system.

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Key points

Switzerland has approved a measure that could benefit retired frontierers, with particular regard to borderers from non-EU countries (EU). The new measure could be financed through an increase in value added tax (VAT), which would be borne by Swiss citizens and residents. Frontiers could benefit from an increase in pension advance without additional charges, thanks to a new thirteenth AVS (Alte meditateシלン für Volksrenten).

The thirteenth AVS, introduced by the federal government's bill, plans to increase pension advances for retired frontier workers, depending on their income and their degree of dependence on work in Switzerland. For example, for frontierers resident in Locarno with a gross annual income (RAL) of 30,000 francs, the pension advance could increase by 700 francs per month, while for frontierers resident in Lugano with a RAL income of 40,000 francs, the pension advance could increase by 1,000 francs per month.

The thirteenth AVS could positively affect the entire Ticino financial ecosystem, promoting the growth of the pension sector and the local economy. In particular, the measure could attract retired frontierers from EU countries, helping to diversify income sources and strengthen the competitiveness of the Ticino sector.

To implement the thirteenth AVS, the Swiss government has provided for a number of operational standards, including the annual income statement and the verification of the degree of dependence on work in Switzerland. For border guards, these steps could be facilitated through specialized financial consultants and multilingual assistance practices.

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