The government rejects the initiative for a 13th AVS pension
There is no financial leeway for the payment of an additional old-age pension, estimates the Federal Council.
The Federal Council does not want a 13th AVS pension, which would be too costly.
KEYSTONE/ANTHONY ANEX
The popular initiative for a 13th AVS pension must be rejected. The Federal Council adopted its message to parliament on Wednesday, without proposing a counter-project. The application of the text would be too costly, according to the government.
The popular initiative “Better living in retirement”, launched by the Swiss Trade Union Union (USS) and women’s and retirees’ organizations, calls for the payment of an additional old-age pension, of the same amount as the AVS pension received each month. This corresponds to a monthly increase in pensions of 8.33%.
No margin
Requests for improvement of AVS benefits are understandable for the Federal Council. But there is no financial leeway for a 13th pension. The acceptance of this initiative would further worsen the financial situation of the insurance, because it would lead to additional expenditure of around 5 billion francs in 2032.
This corresponds to approximately 0.8% of employee contributions or 1.1 points of VAT. According to the current financial outlook, the AVS will already present a distribution deficit of nearly 4.7 billion francs in the current system in 2032, recalls the Federal Council.
Injustices
A 13th retirement pension would also lead to injustice, continues the Federal Council. Such a supplement would not be justified for all retirees, especially the wealthiest.
And recipients of an old-age pension would benefit not only in terms of the annual amount of their pension, but also in the context of supplementary benefits. While the benefits of recipients of a disability pension or survivors would be calculated at a lower level. Such a difference in the treatment of pensions within the 1st pillar is problematic.
Ongoing reforms
And the Federal Council to bet on the reforms in progress. AVS 21, adopted by parliament at the end of 2021 and on which the people will vote on September 25, will guarantee the financing of the 1st pillar and its benefits for the next ten years or so.
The retirement age will be standardized at 65 for men and women. Compensation measures will mitigate the consequences of this change for women close to retirement. The increase in VAT will bring in additional revenue.
Rather than carrying out a costly extension of benefits for all, the Federal Council wants to improve the retirement provision of insured persons with low incomes in a targeted manner. For example, it is planned to extend mandatory occupational pensions to employees whose employment rate and income are low, as part of the LPP reform. This is currently being debated in parliament.
The Federal Chambers will now be able to decide on the initiative for a 13th AVS pension.
Posted today at 3:33 p.m.
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