Introductory Act to the Federal Act on Family Allowances - Purpose (EGZUMFAMZG)

1. This law governs the application of the Family Allowance Act.

2. It specifically regulates the types and amounts of allowances, the responsibilities and organization, as well as the financing.

1. This Act applies to

a) all employers who are liable to pay contributions pursuant to Art. 12 of the Federal Act on Old-Age and Survivors Insurance, provided that the legal seat of the company is in the canton of Appenzell Ausserrhoden, or, in the absence of such a seat, the residence of the employers is in the canton of Appenzell Ausserrhoden,

b) employees of non-contributory employers according to Art. 6 AHVG, to the extent that they are registered for AHV in the canton of Appenzell Ausserrhoden,

c) * non-working individuals as defined by federal law who have residence in the canton of Appenzell Ausserrhoden,

d) * all persons who are compulsorily insured as self-employed in the AHV, provided that the legal seat of the company is in the canton of Appenzell Ausserrhoden, or, in the absence of such a seat, the residence of the self-employed individuals is in the canton of Appenzell Ausserrhoden.

1. Branch Offices in the Canton are fundamentally subject to this Law.

2. The Cantonal Family Compensation Fund may agree on different regulations with other Cantons or non-canton Family Compensation Funds regarding the subordination of Branch Offices.

1. Child and education allowances shall be granted.

1. The child allowance amounts to CHF 230.- and the education allowance to CHF 280.- per month.

2. ...

1. Allowances for employees and self-employed individuals are financed through contributions from employers and self-employed individuals. The respective contribution rate shall not exceed three percent

a) * of the income subject to AHV (Old Age and Survivors Insurance) for employees;

b) * on the portion of the income of the self-employed that corresponds to the maximum insured earnings in compulsory accident insurance.

2. Family compensation funds levy contributions as a percentage of the relevant income according to paragraph 1. They set their contribution rates in such a way that, in the medium term, they present a balanced account, taking into account their needs for

a) the allowances,

b) the accumulation of the fluctuation reserve, and

c) the coverage of administrative costs.

3. The contribution rates of the cantonal family compensation fund are determined by the cantonal government.

1. Employees of non-contributory employers are subject to contributions according to Art. 6.

1. Non-employed individuals are required to pay a share of at most 20 percent on their AHV contributions that exceed the minimum contribution according to Article 10 of the Federal Act on Old-Age and Survivors Insurance. The Executive Council determines the share.

2. The canton covers the remaining costs, including the administrative costs for the implementation of allowances for non-employed individuals.

3. The Executive Council regulates the procedure.

1. Contributions and income from investments may only be used to finance family allowances and to cover administrative expenses.

2. The auditing body of the respective family compensation fund must ensure that only actual and reasonable administrative costs are charged for the implementation of the law.

1. Implementing bodies for family allowances are

a) the occupational or inter-occupational family compensation funds recognized by the canton;

b) the cantonal family compensation fund;

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

2. The family compensation funds in accordance with paragraph 1, letters a and c, must establish their organization, tasks, benefits, and their financing in a set of regulations. This regulation, as well as any subsequent amendments, must be submitted to the competent department for approval.

1. Family compensation funds shall be recognized as implementing agencies pursuant to Art. 10 para. 1 lit. a if

a) they have at least five employers as members,

b) they employ at least 1,000 employees,

c) they provide assurance for lawful activity under federal law as well as under this law, and

d) they properly manage the administration.

2. The governing council shall regulate the procedure. The competent department shall decide on the recognition.

1. The competent department shall revoke the recognition if the conditions under which it was granted are no longer fulfilled or if facts that would have necessitated a denial of recognition become known only subsequently.

1. Under the name “Family Compensation Fund of Appenzell Ausserrhoden,” there exists a cantonal family compensation fund as an independent public law institution headquartered in Herisau.

2. The management of the cantonal family compensation fund is entrusted to the Compensation Fund of Appenzell Ausserrhoden.

3. The bodies responsible for the Compensation Fund of Appenzell Ausserrhoden act, in the fulfillment of the tasks from this law, as bodies and under the name of the cantonal family compensation fund.

1. Family compensation funds managed by the AHV compensation offices according to Art. 10 para. 1 lit. c register with the competent department.

1. Family compensation funds are responsible for implementing legislation regarding family allowances. They are tasked with collecting contributions, determining family allowances on a case-by-case basis, and disbursing them.

2. Family compensation funds may delegate the disbursement of family allowances for employees to the employers.

1. Employers report the wages subject to AHV (Old Age and Survivors' Insurance), pay the contributions, and, with the appropriate authorization, disburse benefits to the entitled parties according to the instructions of the family compensation funds.

1. All employers and self-employed individuals who do not belong to another family compensation fund shall be affiliated with the cantonal family compensation fund.

2. Persons who are not gainfully employed are subject to the cantonal family compensation fund. The canton and the municipalities, as well as other public law corporations, enterprises, and institutions, shall be affiliated with the cantonal family compensation fund, provided they do not belong to the family compensation fund of the Federal Compensation Office.

3. Affiliation with another family compensation fund is only possible if there is simultaneous fund membership in accordance with Article 64 of the Federal Act on Old Age and Survivors' Insurance.

1. Upon the dissolution of a family compensation fund, the assets shall be proportionally allocated to the family compensation funds that take over the affected employees, in accordance with the contribution payments pursuant to this law.

2. The resolution to dissolve, made by the competent body of a family compensation fund, must be reported immediately to the responsible department.

1. The Executive Council exercises supervision over the implementation of this law.

2. The family compensation funds, the employers, and the self-employed subject to the law are required to provide all information necessary for the exercise of supervision.

1. The family compensation funds shall be audited annually.

2. Employers affiliated with the family compensation funds shall be periodically monitored for compliance with legal regulations.

3. The government council shall issue provisions for the audit of family compensation funds.

1. Family Compensation Funds under this Act are tax-exempt.

1. The Government Council shall enact the necessary implementing provisions.

2. Unless otherwise provided by this law, the provisions of the Federal Act on Old-Age and Survivors' Insurance shall apply mutatis mutandis, especially for

a) contributions,

b) refunds,

c) additional payments,

d) default interest,

e) the offsetting of contribution claims with allowance payments,

f) statutes of limitation,

g) notifications by tax authorities,

h) duties of information and cooperation,

i) employer liability and compensation for damages,

j) fund affiliation,

k) fund change,

l) fund liability,

m) confidentiality obligations,

n) penal provisions.

1. Persons subject to this law, employers, administrative and judicial bodies, in particular the competent tax authorities and AHV branch offices, are obliged to provide the competent authorities with the information necessary for the enforcement of this law free of charge and to submit the necessary documents. Data may be made available electronically to the competent authorities or retrieved by them from the data holder.

1. Employers who were previously exempt and those who maintained an operational family compensation fund must join a family compensation fund by the time this law comes into effect.

1. Existing Family Compensation Funds Not Managed by AHV Equalization Funds Retain Their Recognition

Existing family compensation funds not managed by AHV equalization funds will retain their recognition if they meet the requirements of the new legislation concerning family allowances and adjust their regulations within six months after the law comes into effect.

1. Benefits pertaining to the period before the enactment of this law shall be retroactively paid or reclaimed in accordance with previous law.

2. Contributions owed for the period prior to the enactment of this law shall be collected in accordance with previous law.

1. The Law on Child Allowances of April 29, 1984, is hereby repealed.

1. This law is subject to the optional referendum.

2. The government council determines the commencement.