Family Allowances Act (Cantonal Family Allowances Act, FZG) - Subject Matter (FZG)

1. The law governs family allowances for gainfully employed individuals in non-agricultural professions and for non-working individuals, the implementation of the family allowances scheme in the canton, as well as the financing of family allowances and administrative costs, insofar as the Federal Act on Family Allowances (Family Allowance Act) of March 24, 2006, does not apply.

2. Family allowances for agricultural employees and self-employed farmers are governed by the Federal Act on Family Allowances in Agriculture of June 20, 1952.

1. This law applies to

a. employers who are liable to pay contributions according to Article 12 of the Federal Act on Old Age and Survivors' Insurance (AHVG) of December 20, 1946, if the company's legal seat is located in the canton or, if absent, if the employer resides in the canton,

b. employees of non-contributing employers according to Article 6 AHVG,

c. individuals who are mandatorily insured as self-employed under AHV,

d. non-employed persons according to Article 19 paragraphs 1 and 1bis of the Family Allowances Act, who reside in the canton.

2. Employees in the sense of paragraph 1b are persons who are registered for AHV in the canton.

3. Branch offices are subject to this law if they are located in the canton. The Family Compensation Fund of the Canton of Lucerne may agree on divergent arrangements with out-of-canton family compensation funds for the subjection of branch offices.

4. The Government Council shall regulate, subject to the Family Allowances Act, further details on the collection of family allowances by non-employed persons, such as the applicable tax values and the consideration of actual economic conditions, by ordinance.

1. The amount of the child allowance and the education allowance corresponds to the minimum rates according to the provisions of the Family Allowances Act. Paragraph 1bis remains reserved.

1bis The following contributions will be provided as long as the values specified in the Family Allowances Act are not reached

a. up to the completion of the 12th year of age: a child allowance of 210 Swiss francs,

b. from the completion of the 12th to the completion of the 16th year of age: a child allowance of 260 Swiss francs,

c. from the completion of the 16th year of age: an education allowance of 260 Swiss francs.

2. ...

1. Eligible individuals are granted a birth or adoption allowance in accordance with Article 3 paragraph 3 of the Family Allowances Act.

2. The amount of the allowance corresponds to five times the amount of a monthly child allowance as stipulated in Article 5 paragraphs 1 and 3 of the Family Allowances Act.

1. The Family Allowance Regulations of the Canton are implemented by

a. the "Family Compensation Fund of the Canton of Lucerne" as the cantonal family compensation fund,

b. the family compensation funds managed by the AHV compensation funds.

2. Family compensation funds pursuant to Paragraph 1b, which wish to operate in the canton, must register with the office of the cantonal supervisory authority.

1. The Family Compensation Fund of the Canton of Lucerne is a public-law institution with its own legal personality, headquartered in Lucerne.

2. The Compensation Fund of Lucerne manages the affairs of the Family Compensation Fund of the Canton of Lucerne as a delegated task. The Canton reimburses the costs incurred therefrom.

1. Employers and self-employed individuals who belong to an AHV compensation fund according to Article 64 AHVG, which operates a family compensation fund, must join this family compensation fund.

2. The following must join the family compensation fund of the Canton of Lucerne

a. all employers and self-employed individuals who do not belong to a family compensation fund as per paragraph 1,

b. employees of non-contributory employers and non-working individuals,

c. public communities and administrations, establishments and institutions, as well as other public law entities, unless they belong to the family compensation fund of the Federal Compensation Fund.

1. Family Compensation Funds

a. determine family allowances on a case-by-case basis and disburse them to entitled individuals in exceptional cases,

b.* establish the contributions generally and collect them from employers and self-employed persons; subject to § 12 paragraph 2,

c.* inform employees directly or through their employers as well as self-employed persons about their entitlements to family allowances,

d. periodically verify whether the affiliated employers comply with legal requirements; the audit can be delegated to a revision body recognized by the Federal Social Insurance Office,

e. issue decisions on disputed claims and objection rulings.

2. The family compensation funds may delegate specific tasks, particularly the determination of family allowances, to employers, provided they ensure the legal provision of family allowances and proper accounting procedures.

3. The family compensation fund of the Canton of Lucerne additionally monitors the classification of employers and self-employed persons and acts as a liaison for all matters in international contexts. It may delegate the collection of contributions, as well as the determination and disbursement of family allowances, to AHV compensation funds that do not operate their own family compensation fund, as union accounting offices.

4. The union accounting offices according to paragraph 3 receive a contribution towards the documented administrative costs from the family compensation fund of the Canton of Lucerne. This is determined by the cantonal supervisory commission in accordance with § 13.

1. Family compensation funds shall be audited annually by an auditing firm recognized by the Federal Social Insurance Office.

2. The auditing firm of the respective family compensation fund is specifically responsible for verifying whether the information regarding burden equalization is correct and whether only reasonable administrative costs, actually incurred in the implementation of the law, are accounted for.

1. Employers

a. report the wages subject to AHV (Old Age and Survivors Insurance) to the competent family compensation fund, provide all other necessary information, and submit the additionally required documents,

b. immediately forward notifications from employees that may affect their entitlement to the competent family compensation fund,

c. pay the contributions and disburse the benefits to the beneficiaries according to the instructions of the competent family compensation funds,

d. inform their employees about the family allowances,

e. fulfill the tasks assigned to them pursuant to § 9 paragraph 2.

2. Self-employed Persons

a. provide the necessary information and submit the required documents to clarify the claim to family allowances,

b. immediately report to the competent family compensation fund any circumstances that may affect their entitlement,

c. pay the contributions according to the instructions of the competent family compensation fund.

1. The cantonal government council is the supervisory authority over the family compensation funds.

2. It determines the contributions to the family compensation fund of the Canton of Lucerne and approves its annual financial statements and annual report.

1. The Board of Directors for the Compensation Fund Lucerne, in accordance with the Law on the Social Insurance Center of September 10, 2018, serves as the cantonal supervisory authority over the family compensation funds operating within the canton.

2. The Compensation Fund Lucerne operates the office of the cantonal supervisory authority as a delegated task. The canton reimburses the Compensation Fund for the costs incurred as a result.

3. The cantonal supervisory authority has, in particular, the following duties

a. Advising the Government Council on matters of family allowance regulations and in the approval of the annual financial statement and annual report of the Family Compensation Fund of the Canton of Lucerne,

b. Issuance of the investment regulations of the Family Compensation Fund of the Canton of Lucerne,

c. Ordering special audits of the family compensation funds,

d. Approval of the extraterritorial fund affiliation of branch offices,

e. Receipt of reports from the office on the inspection of family compensation funds, particularly regarding the financial equalization,

f. Imposing measures against family compensation funds that do not fulfill or inadequately fulfill their statutory tasks or duties,

g. Determination of the contribution to the union billing offices for their administrative costs in accordance with § 9 paragraph 4.

4. The family compensation funds operating in the Canton of Lucerne are required to provide the cantonal supervisory authority or its office with the requested information on their management activities.

1. Family allowances for employees are financed by the employers.

1. Employees of non-contributory employers shall pay the contribution levied by the Family Compensation Fund of the Canton of Lucerne on contributory employers.

1. The canton finances family allowances for non-employed individuals. The contributions from the canton are co-financed by the municipalities at 50 percent.

2. The financing share of each municipality is calculated based on the average residential population of the previous year, according to the surveys of the Lustat Statistics Lucerne.

3. The canton covers the administrative costs.

1. To finance family allowances for self-employed persons, contributions are levied on them. Within a family compensation fund, the same contribution rate must be levied on the AHV-liable income of self-employed persons as on that of employees.

2. The AHV-liable income from self-employment is determined by the cantonal tax authorities in accordance with Article 9 of the AHVG and communicated to the competent family compensation funds.

1. The contributions of employers and self-employed persons, as well as the income from investments, may only be used for the financing of family allowances, covering reasonable administrative costs, accumulation of fluctuation reserves, and any payments for the burden equalization.

1. There is a burden equalization among the family compensation funds operating in the canton.

2. The office of the cantonal supervisory commission conducts the burden equalization procedure.

1. The determinant for the compensation of burdens is the ratio between the average risk rate of all family compensation funds and the risk rate of the individual family compensation fund.

2. The average risk rate of all family compensation funds is determined by the percentage ratio between the family allowances paid annually by all family compensation funds within the statutory scope and the annual AHV-contributory payrolls, plus the AHV-contributory annual incomes from self-employment liable for contributions from the members of all family compensation funds.

3. The risk rate of the individual family compensation fund is determined by the ratio between the family allowances paid by it within the statutory scope and the AHV-contributory annual payrolls, plus the AHV-contributory annual incomes from self-employment liable for contributions from its members.

4. The family compensation funds must report to the office of the cantonal supervisory commission by no later than March 31 of the following year

a. the paid family allowances,

b. the AHV-contributory annual payrolls,

c. the AHV-contributory annual incomes from self-employment liable for contributions.

1. Family equalization funds whose own risk rate is below the average risk rate shall pay the corresponding difference amount into the burden equalization fund.

2. Family equalization funds whose own risk rate is above the average risk rate shall receive the corresponding difference amount from the burden equalization fund.

3. Payments into the burden equalization fund are due within 30 days of the invoice being issued. Payments from the burden equalization fund are due on May 31 of each year. After the due date, a default or compensation interest is owed.

1. If the reserves of the Family Compensation Fund of the Canton of Lucerne exceed 50 percent of an average annual expenditure, it shall propose a reduction of the contribution rate to the Government Council. If the reserves fall below 20 percent, it shall propose an increase of the contribution rate to the Government Council.

2. Upon the dissolution of a Family Compensation Fund, its assets shall be distributed proportionally to the Family Compensation Funds that take over the members, in accordance with the contribution payments under this law.

1. The other family compensation funds shall provide the family compensation fund of the Canton of Lucerne with the audited annual financial statement and the necessary statistical data free of charge by no later than June 30 of the following year.

1. To the extent that the Family Allowances Act and this Act do not provide otherwise, the provisions of the AHV legislation shall apply mutatis mutandis.

1. Benefits relating to the period prior to the enactment of this law shall be retroactively paid or reclaimed according to the former legal provisions.

2. Contributions owed for the period prior to the enactment of this law shall be collected according to the former legal provisions.

3. ...

4. The Family Compensation Fund for the Self-Employed shall be dissolved. Its reserves are to be used for financing family allowances for the self-employed.

1. The reserves existing at the time of the entry into force of this amendment, arising from the dissolution of the Family Compensation Fund for Self-Employed Persons, shall be distributed to the family compensation funds in accordance with § 6 paragraph 1. The distribution is based on the AHV-liable wage sums of the year 2012. The distributed reserves may only be used for the financing of family allowances.

1. The following enactments are hereby repealed

a. Law on Family Allowances of March 10, 1981,

b. Grand Council Resolution on the Adjustment of Family Allowances of November 6, 2007.

1. The law shall enter into force on January 1, 2009. It is subject to an optional referendum.