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Invalidity insurance revision 6a: Reinsertion measures for invalidity benefits recipients

Country of implementation
Switzerland
General short description of the innovation
In order to pursue the effort to reduce the number of invalidity benefits, the revision 6a focuses on measures to support the labour market reinsertion of benefits recipients. Through this revision, the following two measures have been introduced: / / Job placement on a trial basis for employers hiring disability benefit recipients, in order to reduce risks for employers to hire disabled people. The measure lasts for a maximum of six months (180 days) and is aimed to allow employers to test the competences of a person in receipt of disability benefits. Concretely, this means that for the first six months of employment, no formal working contract is established between the employer and the disabled worker (but other labour regulations have to be respected). During this time, the disabled person continues to receive her pension or daily allowances (Art. 18a, LAI) / / Transitory compensation benefits for recipients of disability pensions experiencing a reduction or abolition of their pension benefits due to employment. In order to improve incentives for disabled people in receipt of disability pensions to return to work, transitory compensation benefits have been introduced for those who experienced a reduction or abolition of their pension benefits after taking up a new job or increasing their working time. The person is entitled to compensatory benefits if she presents a working incapacity of at least 50% for more than 30 days during the first three years after the reduction or abolition of the pension. The compensation amounts the same as the former pension in case of pension abolition, or the difference between the new and former pension in case of pension reduction. It lasts until the right to pension is re-evaluated or working incapacity gets below the threshold of 50% (cf Articles 32 and 33, LAI).
Target group
Disabled
Policy Field
  • employment
  • social
Type of Policy
  • public
Duration of the policy
In force since 1st of January 2012.
Scope of innovation
  • Scope: structural
  • Budgets: revision 6a should relieve the invalidity insurance by about 335 million CHF ? 275,6 million Euros - per year on average between 2012 and 2027.
  • Number of intended beneficiaries: it is aimed to increase the earning capacity of about 17?000 benefit recipients in 6 years.
  • Spatial coverage: national
General description of (intended) objectives and strategies
In order to diminish the number of invalidity benefit pensions, the revision 6a of the law on invalidity insurance has introduced measures supporting the labour market integration of recipients, such as job placement on a trial basis and transitory compensation benefits for recipients experiencing a reduction or abolition of their benefits due to employment.
Nature of the innovation-short-term perspective
moderate to strong
Nature of the innovation-long-term perspective
moderate to strong programmatic change
Type of innovation
  • retrenchment or expansion of an existing/earlier policy
New outputs
  • benefit eligibility
  • wages
Intended target group
Invalidity benefit recipients presenting a potential to labour market reinsertion.
Working age population
  • main source of income: social protection (disability benefits)
Actors involved in policy-making/implementation and/or evaluation
  • agency or national social insurance body (Cantonal disability offices as implementation agents.)
  • central state
Intended output
  • benefit eligibility
  • wages
Did the innovation have any outcome related to job quantity?
the reform aims principally at increasing the labour market participation of people with disabilities, however organizations active in the protection of people with disabilities claim that the revision will increase the number of people who have no longer right to benefits, while not having achieved real labour market integration either. No exact data have been found on labour market integration after the reform.
Intended and unintended outcomes
unknown
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