Why is there a need for "assets"?
The social insurance schemes (AHV, IV and EO) are financed by a pay-as-you-go system. The income is used to finance the benefits. The laws regulate the income and benefits separately. This means that the benefits do not depend on the amount that is received, and the contributions are not determined on the basis of the benefits that must be provided.
Income and benefits are influenced by a number of factors that exert variable influences at different times:
The income received in the form of a "percentage of salary" (AHV, IV and EO) depends on the total wages and salaries paid to Swiss employees and the income earned by self-employed individuals in Switzerland.
The income received from the value added tax (AHV and IV) depends on the total sales of products subject to value added tax.
The income from casino tax (AHV) depends on the turnover of these institutions.
Only the contributions paid by the Confederation (AHV and IV) are determined on the basis of the actual expenses.
The expenses of the AHV are determined by the number of pensioners and the pension structure (retirement pensions for single persons and for married couples, widow's and orphan's pensions).
The expenses of the IV are mainly determined by the number of disability pensioners and the number of new people who become disabled.
The expenses of the EO are primarily determined by the number of days of military service and the number of births.
This situation means that the operating result that applies to the AHV, IV and EO can almost never be in balance.
Conclusion:
compenswiss’ assets or portfolio enable the institution to finance the statutory benefits even in years when it does not receive sufficient income. The assets therefore serve as a "cushion".
If the accounts close with a surplus of receipts at the end of a year, the assets increase.
If they close with a shortfall, the assets decrease.
