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On March 3, Switzerland will vote on the introduction of a 13th AHV pension. The committee behind the popular initiative for the 13th AHV pension has started its campaign. It justifies the demand with rising costs of living and speaks of a pension increase that is beneficial to employees.
The initiative ‘For a better life in old age (initiative for a 13th AHV pension)’ wants AHV recipients to be entitled to a ‘thirteenth’. This must be an annual supplement equal to one-twelfth of your annual pension. Since 2021, inflation and health insurance premiums have eaten away at a monthly pension.
“AHV is not social assistance”
People who have worked all their lives are affected, said Pierre-Yves Maillard, SP Councilor of States of Vaud and president of the Trade Union Confederation (SGB), speaking to the media in Bern on Tuesday. Given the rising cost of living, they no longer know how to defend themselves.
He gave the example of a nurse and a single mother of two children. With her pension she has to make do with a studio instead of an apartment. “What we want is not luxury,” Maillard said. The AHV is not social assistance, but an income that is deferred until retirement age. “For us it is about wage policy.”
Combating poverty was the fundamental goal of the AHV, according to Green National Councilor Léonore Porchet (VD). According to figures from Pro Senectute, around 300,000 people of retirement age are at risk of poverty, many of whom are women. A 13th AHV pension means at least a small increase in the value of women’s work.
Reduce the loss of purchasing power
SP co-chair Mattea Meyer called the loss of purchasing power of retirees ‘economic nonsense’. Those who have reached retirement age and have to think about whether to travel or give a gift for their grandchildren will consume less, Zurich’s national councilor said.
Based on figures from the Federal Council, the committee states that the AHV has sufficient financial buffer to award the “thirteenth” until approximately 2030 without additional contributions. Only then, if necessary, should the wage contributions of employers and employees each be increased by 0.4 percent of wages.
8.3 percent more AHV pension
The initiators estimate the costs of the 13th AHV pension upon introduction at around 4.1 billion francs. The ‘thirteenth’ would correspond to an increase in AHV pensions by 8.33 percent. This increase would mainly benefit people with low and middle incomes.
Vania Alleva, president of the Unia trade union, calculated what the 13th pension would cost for workers and what it would yield at retirement age. For example, on a monthly income of 6,000 francs, 24 francs more would have to be paid in AHV premiums in order to later receive 186 francs more in pension.
UBS CEO Sergio Ermotti, on the other hand, would have to pay an extra 4,400 francs a month to the AHV if he voted yes, Alleva explained, and he would receive a surcharge of 200 francs. Just as the flowerbed needs the watering can, Switzerland needs the AHV to guarantee social justice and a dignified old age for all, Alleva said.
Additional services will continue to exist
Current and future retirees must be entitled to the allowance. According to the text of the initiative, the 13th AHV pension must be paid out no later than the beginning of the second calendar year after acceptance of the initiative, i.e. in 2026.
However, according to Maillard, the introduction of the 13th AHV pension would be possible as early as next year. The supplementary benefits (EL) should not be reduced in exchange for the “thirteenth,” the SGB president added. According to the initiative text, the legal criteria for ELs should be adapted accordingly.
Trade unions, parties and elderly organizations support the initiative. The Federal Council and Parliament recommend a no. According to the state government, a yes vote in 2032 would result in additional expenditure for the AHV of approximately five billion francs – in addition to the expected tax deficit of 4.7 billion francs. (SDA)
Source:Blick
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