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These amendments also established a board of trustees. Its purpose is to cover subsistence needs in old age or the event of a death. Individuals pay into the program when they work, allowing them to receive benefits when they retire.
There are two social security trust funds Old age and survivors’ insurance (oasi) is the most important pillar of old age and survivors’ benefits in switzerland (1s t pillar) If this occurs, beneficiaries could see their payments reduced by up to 21%.
At that time, it will pay out around 77% of the benefits for which recipients normally would be eligible.
Both the oasi and di programs operate with a trust fund financing mechanism Monies credited to these trust funds are earmarked for paying social security benefits and certain administrative costs. Social security is the term commonly used to describe the old age, survivors insurance program (oasi) which was created by title ii of the social security act of 1935.
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