AVS and complementary services in the Canton of St. Gallen (cross-border guide)

Context

In a nutshell

• Canton of St. Gallen Compensation Fund manages AVS contributions and annuities
• Supplementary benefits (PC) cover the minimum living allowance of those entitled
• Contribution gaps can reduce the AVS income proportionally
• LUFAS/BSV coordinates social security at the federal level

Key facts

• What: Cantonal Clearing House of St. Gallen (Ausgleichskasse St. Gallen)
• When: Not yet specified in source
• Where: Canton of St. Gallen, Switzerland
• Who: UFAS/BSV (Confederation) + cantonal clearing houses
• Amount: Specific data on annuities and PC thresholds not reported in the source
• Legal basis: AVS/AHV managed by the first pillar of Swiss social security
• Tools: AVS annuity calculator on the official federal website
• Reference: UST/BFS publishes statistics on pensions and PC beneficiaries

Swiss social security is divided into three pillars: the first is the AVS/AHV, which is mandatory for anyone who carries out a gainful activity in Switzerland. In the Canton of St. Gallen, as in all the Cantons, the collection of contributions and the payment of AVS annuities are entrusted to the cantonal compensation fund, which operates under the supervision of the UFAS/BSV at the federal level. The compensation fund is the first point of contact for workers, employers and recipients of annuities.

Registration with the compensation fund generally takes place through the employer, who pays the contributions

Operational details

Key facts

• What: Complementary services (PC) as a safety net of the first pillar
• When: Entitlement assessed year by year based on income and substance
• Where: Canton of St. Gallen, cantonal PC office
• Who: Confederation (UFAS/BSV) + Canton for financing
• Amount: Specific amounts and substance thresholds not reported in the source
• Procedure: Request at the PC office of the Canton of St. Gallen

When the AVS annuity, possibly added to other benefits of the first and second pillar, is not sufficient to cover the minimum living allowance recognized by law, the supplementary benefits (PC) intervene. It is a benefit subject to conditions of income and substance, financed in part by the Confederation and in part by the Cantons. The UFAS/BSV defines the regulatory framework, while the operational management is entrusted to the cantonal offices of the PCs — also in the Canton of St. Gallen.

Who is entitled to PCs and how they are calculated

Persons who receive an AVS or AI annuity and whose determining income, net of recognized expenses, does not exceed the recognized expenses for vital needs are potentially entitled to PCs. The expenses recognized include an amount for vital needs (distinguished by single, couple, family), actual rental expenses within a maximum, compulsory health insurance premiums (LAMal/KVG) up to an average cantonal amount, and additional items for particular situations such as

Useful planning tools

To estimate your pension strategy, use the pension planner and the pillar 3 simulator.

Key points

Key facts

• What: Operational procedure for claiming AVS pensions and supplementary benefits
• When: Applications at any time, with effect from the date of submission
• Where: Compensation fund + PC office of the Canton of St. Gallen
• Who: Insured person, employer, cantonal office
• Documents: AVS account statement, salary certificates, asset documentation

Obtaining the AVS pension and, if necessary, supplementary benefits is a path that may seem bureaucratic but follows clear steps. Here is how to proceed concretely in the Canton of St. Gallen.

Step 1: Verify your AVS account

The first step is to request the individual AVS account statement, which lists all recorded earnings and credits for childcare or care tasks. The statement can be obtained online via the federal portal or at the cantonal compensation fund. Any missing income must be reported with supporting documentation (salary certificates, employer attestations).

Step 2: Apply for the AVS pension

The AVS pension is not paid automatically: it must be formally requested from the compensation fund of the Canton of St. Gallen approximately three to six months before reaching reference age. The application can be submitted online or in paper form and requires personal and bank details as attachments.

Step 3: Consider redeeming contribution gaps

If the account statement shows contribution gaps in the last five years, a redemption can be considered. However, the redemption is only partly tax-deductible and must be assessed case by case: for people with high incomes, it is often better to leave the gap and compensate through PC; for people with substantial assets, redemption may be more efficient.

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