Wage replacement benefits
Insureds who suffer at least 20% incapacity for work before reaching the normal retirement age are entitled, after the end of the affiliated employer's continued salary payment obligation or other replacement income (eg daily sickness or accident benefits, income from another employer), to a time-limited wage replacement benefit according to the extent of the incapacity for work, up to 70% of the last insured salary in the Pension Plan. As long as a minimum incapacity for work of 20% persists, wage replacement benefits are paid by the Pension Fund during a maximum period of 18 months or until a Federal Disability Insurance (IV) pension is recognised on the basis of an IV ruling.
In the event of full incapacity for work, the amount of the wage replacement benefit is 70% of the last insured salary in the Pension Plan. In the case of partial incapacity for work, the wage replacement benefit is reduced in line with the degree of incapacity for work. If the degree of incapacity for work changes while it is being drawn, the wage replacement benefit is adjusted correspondingly.
The insured is obliged to submit in a timely manner the documents required by the Pension Fund Swiss Re regarding health assessment as well as information on the degree of incapacity for work and income; otherwise the Pension Fund Swiss Re wage replacement benefits may be immediately suspended.
The Pension Fund Swiss Re may require the insured to undergo a medical examination by an appointed physician.
Exemption from contributions
For the period of salary-replacement benefits or at the latest at the start of entitlement to a temporary disability pension, the insured will be granted exemption from contributions. An insured is entitled to exemption from contributions on expiry of the affiliated company's obligation to make salary payments and lapses when the entitlement to the salary-replacement benefits or temporary disability pension ends. The exemption from contributions is granted during partial incapacity for work or partial disability in accordance with the degree of disability.
For insureds who become disabled before the start of the full insurance cover, the exemption from contributions is insured according to Category 1 from the point when the insured would have acquired full insurance cover.
As in the past, retirement credits are credited to the individual retirement account based on the last contribution category that the insured selected before becoming unfit for work. During exemption from contributions, the contributions to the Pension Plan by the disabled insured and the employer's contributions for the insured in question are debited from the Pension Fund Swiss Re.