Problems with the 13th pension: SVP-Chiesa botches Rechsteiner’s AHV proposal

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Shortly after the vote, Paul Rechsteiner, the father of the 13th AHV pension, proposed financing it with surpluses from unemployment insurance.
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Rafael Brunner

observer

Are higher wage contributions necessary? More VAT? Should Switzerland stop development aid? After voting yes to the 13th AHV pension, politicians outdo each other with demands about where the money for the supplementary pension should come from. Against this background, a proposal by former State Councilor Paul Rechsteiner, who was chairman of the Swiss Federation of Trade Unions for twenty years, is surprising.

Article from the “Observator”

This article was first published in the “Observer”. You can find more exciting articles at www.beobachter.ch.

This article was first published in the “Observer”. You can find more exciting articles at www.beobachter.ch.

There is no need to impose additional burdens on the people of the country, nor on employees, employers or consumers, the former social politician from St. Gall told the Observer. Surplus money from other social insurances could secure the AHV.

“Don’t feel anything in your wallet”

Rechsteiner is the first to mention unemployment insurance (ALV). Because unemployment has been low for years, there are large surpluses. At the end of 2023, her fortune was estimated at almost 7 billion francs. Because there is an asset brake for the AGM, the Federal Council will have to reduce wage deductions in about two years if unemployment rates remain stable. This money – about 1.3 billion francs, 0.3 percent of wages paid half by employees and half by employers – could be channeled to the AHV instead, Rechsteiner says.

“Saving the federal budget”

He sees the same possibility for accident insurance and child benefit. The number of accidents is decreasing and fewer children are being born. “The trade union federation has calculated that wage contributions to social insurance will generally fall so sharply that people will not notice the higher AHV premiums in their wallets.”

More about the 13th AHV pension
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Monthly or once a year
How is the 13th AHV pension paid out?
Anyone who gets in his way usually loses

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Father Courage is bursting with strength
This is where the father of the 13th AHV pension wants to get the money from
Father of the 13th AHV pension
“No one should have to pay more than they do now”

AHV financing without sacrifice? That is not possible, say the civil parties. “Weakening unemployment insurance to finance the 13th AHV pension would be shortsighted,” said FDP chairman Thierry Burkart. We don’t know how the economy is developing. The 1.3 billion from the ALV can only cover a small part of the AHV need, namely 4 to 5 billion. “The money we need from 2026 for the 13th pension must mainly be provided through savings measures in the federal budget.”

“Don’t forward when it suits you”

SVP President Marco Chiesa calls Rechsteiner’s proposal a “neglect of federal policy.” ALV and accident insurance depend on reserves. “It is not possible to reallocate legally required contributions at your discretion.” The SVP wants to raise the money for the AHV through cuts in development aid, asylum and aid to Ukraine. “We reject an increase in wage deductions and VAT.”

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What is needed now is the Federal Council. With the help of a group of experts, he wants to develop savings proposals for the federal budget by the end of the summer. Moreover, by 2026, regardless of the 13th AHV pension, he must put forward a template for the reform of the AHV that ensures its long-term financing.

Source:Blick

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Livingstone

Livingstone

I am Liam Livingstone and I work in a news website. My main job is to write articles for the 24 Instant News. My specialty is covering politics and current affairs, which I'm passionate about. I have worked in this field for more than 5 years now and it's been an amazing journey. With each passing day, my knowledge increases as well as my experience of the world we live in today.

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