Act on Family Allowances (KFZG) - Purpose (KFZG)

1. Family allowances are provided to partially offset the financial burden posed by one or more children.

2. Family allowances for employees are a supplement to the salary. They must not influence it in any way.

1. Unless this law provides otherwise, the provisions of the Federal Act on Family Allowances (FamZG), the ordinance issued based on it (FamZV), and the AHVG shall apply mutatis mutandis. The latter particularly in relation to the provisions on employer liability and criminal acts.

1. The family allowances under this law include child allowances and education allowances in accordance with the provisions of the Family Allowances Act (FamZG).

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3. The amount of family allowances is determined according to the rates fixed by the federal government, but it shall be at least 220 francs for child allowances and 270 francs for education allowances.

4. If the financial situation of the family compensation funds allows, the government is authorized to increase the minimum rates.

1. The claim for family allowances must be asserted with the competent family compensation fund. The government regulates the details of registration and the obligation to report.

2. The family compensation funds determine the family allowances. Employers pay out the allowances to employees according to the instructions of the competent family compensation fund.

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1. Implementing Agencies are

a) the Family Compensation Fund of the Canton of Graubünden;

b) the recognized clearing offices;

c) the recognized private family compensation funds of professional associations;

d) the employers;

e) the family compensation funds managed by the AHV compensation funds.

1. The cantonal offices and municipalities provide the family compensation funds with the information necessary for the implementation of this law free of charge.

2. The AHV (Old-Age and Survivors Insurance) branch offices carry out the tasks arising in the municipalities in accordance with the instructions of the family compensation fund of the Canton of Graubünden.

3. The municipalities bear the associated administrative costs.

1. The canton shall establish a cantonal fund under the designation "Family Compensation Fund of the Canton of Graubünden" as an independent public-law institution with its seat in Chur. Its administration shall be conducted by the Social Insurance Institution of the Canton of Graubünden (SVA).

2. The SVA is subject to the same supervision by the Administrative Commission in conducting the administration of the cantonal Family Compensation Fund as it is for its other operations. The audit office of the SVA shall simultaneously serve as the audit office for the Family Compensation Fund of the Canton of Graubünden.

1. As far as family allowances for employed persons are concerned, the cantonal fund may delegate the implementation of the law to the AHV (Old Age and Survivors' Insurance) association compensation offices (settlement offices) and conclude corresponding contracts.

2. The settlement offices must periodically settle accounts with the cantonal fund concerning the contributions and the family allowances paid out and provide the SVA (Social Insurance Office) with the information, documents, reports, and statistical data it requests.

1. Existing private family compensation funds are recognized, provided they guarantee orderly and lawful activities.

2. The establishment of new professional and inter-professional family compensation funds within the meaning of Article 14 letter a of FamZG is prohibited.

3. If a private family compensation fund no longer meets the legal requirements and does not restore the lawful condition within a reasonable period, the government shall revoke its recognition.

4. Family compensation funds managed by AHV compensation funds pursuant to Article 11 letter e of this law must register with the cantonal fund.

5. Any surplus from the liquidation upon dissolution of a private family compensation fund is to be used according to its statutes. In the absence of a statutory provision, the surplus shall fall into the burden equalization fund.

6. Recognized private family compensation funds and those managed by AHV compensation funds operating in the canton must provide the SVA with the requested information, documents, reports, and statistical data.

**1. All employers, self-employed individuals, and employees with employers that are not obligated to contribute, who are not affiliated with a recognized private family allowance fund or one managed by an AHV compensation fund, must join the cantonal family compensation fund. Non-working individuals, regardless of their fund affiliation according to AHVG, must claim family allowances from the cantonal fund.**

**2. Employers, self-employed individuals, and employees with employers that are not obligated to contribute, who belong to a founding association, must join the private or AHV compensation fund-managed family allowance funds.**

**3. Employers whose operating costs are substantially covered by the canton and municipalities must join the cantonal family compensation fund.**

**4. The SVA controls fund affiliation.**

1. Family Compensation Funds collect contributions from affiliated employers, self-employed individuals, and employees with non-contributory employers as a percentage of the AHV-contributory wage sum or the AHV-contributory income, respectively. The aggregate of these contributions is used to finance family allowances for working individuals, administrative costs, the equalization levy, and to build up a reserve fund.

2. Within a Family Compensation Fund, the same contribution rate must be levied on the AHV-contributory wage sum of employees and the AHV-contributory income of self-employed individuals.

3. The government determines the contribution that must be paid by employers, self-employed individuals, and employees with non-contributory employers affiliated with the cantonal fund. This contribution may not exceed 2.4 percent of the AHV-contributory wage sum or the AHV-contributory income, respectively.

1. Family allowances for non-working individuals, including administrative costs, are financed by the canton.

2. A separate account must be kept for family allowances for non-working individuals.

1. Family compensation funds operating in the Canton of Grisons are required to pay an annual levy to balance the burdens. This contributes to a compensation fund, which is managed by the Social Insurance Authority (SVA).

2. The government sets the rate of the compensation levy. It amounts to a maximum of 0.3 percent of the wage total subject to contributions, respectively, of the income subject to AHV contributions capped in accordance with Article 16 paragraph 4 of the Family Allowances Act (FamZG).

3. The cantonal family compensation fund does not participate in the burden equalization.

1. Funds whose chargeable expenses exceed the chargeable revenues receive a balancing contribution in the amount of the difference.

2. Chargeable expenses are considered to be

a) the allowances to the employed within the framework of the prescribed minimum rates as well as further expenses of the performance and contribution account;

b) the compensatory levy;

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3. Chargeable revenues are considered to be the contributions of employers, self-employed individuals, and employees with employers without contribution obligation, calculated according to the rate applicable to the cantonal fund, as well as other revenues of the performance and contribution account.

4. Funds whose reserves exceed the annual expenditure on December 31 do not receive a balancing contribution.

1. The SVA collects the compensation levies and disburses the compensation contributions.

2. The administrative costs for implementing the compensation scheme are borne by the compensation fund and are to be billed separately to this fund by the SVA.

1. Against decisions of the family compensation funds, the affected parties may file an objection with the issuing authority within 30 days of the notification of the decision, either in writing or orally during a personal appearance.

1. Appeals against objection decisions of the family compensation funds can be filed with the High Court within 30 days of the notification of the objection decision.

1. In the event of a dispute regarding membership of the health insurance fund, the parties may appeal to the government.

2. An appeal against the government's decision can be lodged with the Supreme Court within 30 days from the notification of the decision.

1. The government shall issue the necessary implementing provisions.

1. The government may enact regulations that deviate from the law for the subordination of branch offices and may conclude relevant agreements with other cantons or out-of-canton family compensation funds.

2. The conclusion of such agreements may be delegated to the family compensation fund of the Canton of Graubünden.

1. The Act on Family Allowances of October 26, 1958, is hereby repealed.

1. For self-employed individuals who were subject to the previous law and are now no longer subject under the new law, both the obligation to pay contributions and the entitlement to benefits will cease upon the enactment of the FamZG.

2. Benefits related to periods before the enactment of the FamZG will be retroactively paid or reclaimed according to the previous law.

3. Contributions owed for periods before the enactment of the FamZG will be collected according to the previous law.

4. The assets accumulated for family allowances for self-employed individuals will be allocated proportionally to the family compensation funds, in accordance with the contributions made between the years 2004 to 2008 pursuant to Article 17, paragraph 1, letter b of the previous law.

1. The government determines the date of entry into force of this law.