AHV pensions increase by 2.5 percent

The Federal Council on Wednesday adjusted the AHV and IV pensions in accordance with the mixed index prescribed in the AHV law. Every two years it must be checked whether the pensions need to be adjusted in line with inflation and wage developments. The recommendation of the Federal AHV/IV Commission is taken into account.

According to the Federal Council, inflation of 3 percent and a wage increase of 2 percent is expected for the current year, hence the mixed index of 2.5 percent. According to the Federal Council, this will almost completely offset inflation. The pensions for 2021 were last adjusted.

Huge extra costs

The higher pensions lead to additional costs of approximately 1.37 billion francs. CHF 1,215 billion of this is attributable to the AHV, of which CHF 245 million or about a fifth of the expenditure is borne by the confederation. The disability insurance (IV) must bear additional costs of 155 million francs.

On the table, however, is the question of full cost of living for AHV and IV pensions and supplementary and bridging benefits. Three motions are under consideration by the councils. A lower inflation threshold is also required for the early adjustment of pensions, which is now 4 percent.

Increased minimum contributions

If these proposals are passed in the winter session, the law could be passed urgently in the spring session, the Federal Council writes. The higher pensions can then be paid with retroactive effect to 1 January.

The Federal Council has also increased the minimum contributions for self-employed and unemployed persons for AHV, IV and EO from 503 to 514 francs per year. The minimum contribution for voluntary AHV/IV increases from 958 to 980 francs.

EO and allowances are also increased

In addition to the IV and AHV, the maximum compensation in the income replacement scheme (EO) will be adjusted from the current CHF 245 to CHF 275. This increase results in a cost of CHF 100 million for the EO. In the case of supplementary and bridging benefits, the amount to cover general necessities is adjusted.

For singles it rises from 19,610 to 20,100 francs per year, for married people from 29,415 to 30,150 francs and for children older than 11 to 10,515 francs, or 7,380 francs for younger children. These adjustments lead to additional costs of approximately CHF 5.2 million for the Confederation and CHF 3.5 million for the cantons.

The rental premiums are also increased or adjusted in line with inflation. The increase is 7.1 percent. Depending on the region, that is between 15,540 and 17,580 francs per year. The cost of this increase is CHF 37.8 million. The fixed amount for additional costs and heating costs will also be increased from CHF 2,520 to CHF 3,060 per year.

Unions demand full compensation for living expenses

The umbrella organization of employees (Travailsuisse) and the trade union federation (SGB) were in principle happy with the increase in AHV and IV contributions, they each announced in a statement. In this way, part of the purchasing power can be preserved.

The calculation system based on a mix of wage developments and inflation falsifies the result. Inflation has outpaced wage growth over the past two years. The pension adjustments based on the mixed index are not sufficient to safeguard the purchasing power of AHV pensions, as required by the constitution. Many retirees are confronted with poverty in old age.

(SDA)