Key Benefits:
(State 1 Er October 1997)
Original text
| The Chief |
Bern, 26 October 1994 |
| Of the Federal Department |
|
| Foreign Affairs |
|
| Mr. Kjartan Johannsson |
|
| Secretary-General |
|
| Of the European Association |
|
| Free trade |
|
| Geneva |
Secretary-General,
I have the honour to refer to the discussions which took place between, on the one hand, representatives of the European Free Trade Association, in Geneva, hereinafter referred to as the Association, and the other international organisations established in Switzerland, and, On the other hand, my Department concerning a judgment delivered on 25 February 1991 by the Federal Insurance Court. According to this decision, an international civil servant of Swiss nationality, who is exempted from the accumulation of excessive charges under Art. 1, para. 2, let. B, Federal Old Age and Survivor Insurance Act 2 (LAVS), remains affiliated with Unemployment Insurance and is required to make contributions. Relying on the freedom and independence which international organisations and their officials must enjoy in relation to the host State-which Switzerland does not intend to call into question-and the fundamental principle of equality On the basis of the special status it enjoys in Switzerland under the Agreement concluded on 10 August 1961 3 With the Swiss Federal Council, your Association made known that it could not subscribe to such an affiliation.
On behalf of the Swiss Federal Council, I have the honour to propose that as of 1 Er January 1994, officials of Swiss nationality of your Association are no longer considered by the host State to be insured under the old-age and survivors' insurance (AVS), invalidity insurance (DI), insurance for Loss of earnings (GAPs) and unemployment insurance (UI), provided they are affiliated with a contingency plan provided by the Association. They will be able to join, on a voluntary basis, either at the AVS/AI/APG/AC or at HQ alone, with the understanding that such an individual affiliation will not result in any mandatory financial contribution from the Association. In order to do so, they must file their application with the compensation fund of the canton of their domicile within three months of their affiliation to a system of foresight provided for by the Association or, for those who are Already in the service of the Association within six months from the date of your reply to this letter.
In addition, I have the honour to propose that the spouses, Swiss or foreign, of international civil servants of Swiss nationality, who are domiciled in Switzerland, are no longer compulsorily insured by the AVS/AI/APG, when they do not Of a gainful occupation at the time of the affiliation of the international civil servant to the system of foresight provided for by the Association or when they subsequently cease their gainful occupation. They will be able to join the AVS/AI/APG on a voluntary basis. In order to do so, they must file their application with the compensation fund of the canton of their domicile within three months of the international civil servant's affiliation to a system of foresight provided for by the Association, or Within three months of the termination of their gainful employment or within six months from the date of your reply to this letter, when the international civil servant is already serving the Association. The regulations described above also apply to spouses-who do not enjoy privileges and immunities-of foreign international civil servants who are exempt from Swiss social security under s. 1, para. 2, let. A, LAVS
Insured persons may, at any time, terminate all insurance coverage they have chosen for the end of the current month. The AVS/AI/APG/AC insured may, however, terminate only the AVS/AI/APG and maintain their affiliation with the CA. Termination shall be valid for the duration of the commitment of the international official to the service of the Association. Subject to the specific conditions set out in this letter, the provisions of the AVS/AI/APG/AC shall apply to them. Those insured persons who fail to meet their obligations within the prescribed time limit will be excluded after warning.
The Association provides the Federal Department of Foreign Affairs with the list at 1 Er January 1994 persons of Swiss nationality who are affiliated to that date with a system of foresight provided for by the Association and shall notify in writing each admission or exit of a Swiss official to audit or the said system.
I would be grateful if you would let me know if the above meets your approval. If yes, this letter and your reply will constitute an agreement by way of exchange of letters. The latter shall enter into force on the date of notification by the federal authorities of the completion of the constitutional formalities required for that purpose. Until this date and from 1 Er January 1994, it will be applied provisionally.
It may be terminated by either party on the first day of a calendar year, subject to twelve months' written notice.
Please accept, Sir, the assurance of my high regard.
| Flavio Cotti |
| Federal Councillor |
On behalf of the Association, I accept the provisions contained in your letter. Accordingly, your letter and mine constitute an agreement by way of exchange of letters. The latter shall enter into force on the date of notification by the federal authorities of the completion of the constitutional formalities required for that purpose. Until this date and from 1 Er January 1994, it will be applied provisionally.
I would ask you to approve, Sir, the assurance of my high regard.
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1 Art. 1 Er Al. 1 let. H of March 4, 1996 (RO) 1997 609)
2 RS 831.10
3 RS 0.192.122.632.3
