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

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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.

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.”

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.”

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