Service Level Agreement for Pro Senectute: transparency of funds allocation and focus on vulnerable groups

Key facts

In Switzerland, not only the state, but also third parties such as non-governmental organisations deal in old-age policy. Based on the Federal Law on Old-age and Survivors’ Insurance (AHVG, SR 831.10), one way the Confederation supports old-age aid on a national level is by means of service level agreements with third parties. The reorganisation of fiscal equalisation (NFA) has limited the scope of Art. 101bis AHVG: Since 2008, subsidies have been paid to nationwide organisations only, whereas before that, their cantonal and regional agencies received direct payments. However, after the reorganisation of fiscal equalisation, the umbrella organisations still pass on a major share of contributions to their cantonal agencies. As for Pro Senectute, a service level agreement over an annual maximum of CHF 54 million has been signed for the years 2010 to 2013.