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The time of payment is not yet clear
A journalist asks Baume-Schneider if it is already clear when the 13th pension will be paid? At the end of the year, like a Christmas bonus, or once a year? We will have to wait and see, answers the federal councilor. There have already been discussions about this, including about the payment in December. But nothing is concrete yet.
Consultation in the summer, message in the autumn
The Federal Council is following a tight schedule to ensure the implementation and financing of the 13th pension by 2026. He instructed the EDI to submit a consultation template with the agreed key parameters by summer 2024. The message should then be sent to Parliament in autumn 2024.
New AHV reform for the 2030s
Even without the additional costs of the 13th pension, the AHV faces significant financial challenges, Baume-Schneider explains. In any case, shortages are expected from 2030 onwards.
Firstly, the number of retirees is growing faster than the number of workers who contribute to the AHV. Secondly, as life expectancy increases, pensions should be paid out for longer. Three years ago, Parliament instructed the Federal Council to develop a reform for the period after 2030 by 2026. As part of this reform, structural measures such as raising the retirement age and other financing options that cannot be achieved in the short term would also be included. implemented are being investigated.
Temporarily reduce the federal contribution
Baume-Schneider continues that the federal contribution to the AHV should also be temporarily reduced. This is to avoid an additional burden on federal finances.
Because: Today the federal government finances a fixed share of 20.2 percent of the costs of the AHV. If the 13th pension were introduced, the federal government would have to cover 840 million of the 4.2 billion francs. The temporary reduction in the federal share of AHV costs should be reduced to 18.7 percent from January 2026 until the next reform takes effect, Baume-Schneider said.
The Federal Council is participating in the race with two variants
Baume-Schneider once again discusses the costs that the 13th pension entails. This will cost 4.2 billion francs when introduced. After five years, these costs increase to approximately 5 billion francs. Without additional funding, the AHV’s finances quickly ran into problems; The tax result would become negative as early as 2026 and the deficits would increase rapidly in subsequent years.
In order not to endanger the finances of the AHV, the Federal Council wants to guarantee the financing of the 13th pension at the same time as its introduction in 2026, the federal councilor explains. Two variants should be further pursued:
On the one hand, the Federal Council is examining an increase in wage contributions by 0.8 percentage points. Secondly, the combined increase in wage contributions by 0.5 percentage points and the VAT increase by 0.4 percentage points.
Annual payment of the supplementary pension
The Federal Council provides for an annual payment, the Head of the Interior (EDI) explains. This is the best way to meet the will of the people.
Media conference begins
The outcome of the vote on the 13th AHV pension was clear. The Federal Council wants to ensure that the supplementary old-age pension can be paid to all pensioners from 2026, Federal Councilor Baume-Schneider starts the media conference. He also wants to ensure that no one’s additional benefits are reduced by this surcharge.
Media conference with Federal Councilor Baume-Schneider
The 13th AHV old-age pension will be paid out once a year from 2026 and financed sustainably. The Federal Council therefore wants to move forward: during its meeting on Wednesday, it established the benchmarks for the implementation of the popular initiative, which was adopted at the beginning of March.
At 3 p.m., Social Affairs Minister Elisabeth Baume-Schneider will speak at a press conference in Bern about how to proceed with the implementation. Stéphane Rossini, head of the Federal Social Insurance Agency (BSV), will also participate.
Retirees can rejoice! The AHV surcharge will come into effect from 2026. It is now clear how the 13th pension should be paid out: once a year! The Federal Council has set this down in its main parameters for the implementation of the 13th AHV pension.
The responsible SP Minister of Social Affairs Elisabeth Baume-Schneider (60) is also making progress with the financing: this year she wants to clarify how the 13th AHV pension should be secured. From 2026, an additional 4.2 billion francs will have to be raised annually. Increasing trend.
Baume-Schneider would prefer financing through additional wage rates, as this is a classic redistribution mechanism from higher earners to lower earners. A recipe that the civil parties and business associations do not like.
Two options
The Federal Council therefore wants to develop a selection of two variants, which will be sent for consultation in the summer. They look like this:
- Variant wage percentage: The first option concerns only financing
additional wage contributions. Wage contributions must be increased by 0.8 percent, i.e. by 0.4 percent each for employees and employers. With a gross monthly salary of 7,000 francs, an employee pays 28 francs more into the AHV. - Combination solution: The second variant provides for a combined increase in wage contributions and VAT. Wage contributions would be increased by 0.5 percent, i.e. by half 0.25 percent each. VAT would increase by 0.4 percent.
With this rapid approach, the government wants to prevent the AHV’s finances from deteriorating quickly. Without additional financing, the so-called tax result would become negative as early as 2026.
The federal government should pay less to the AHV
It is now clear what should happen to the federal share. The federal government currently pays 20.2 percent of AHV expenditure annually from the federal treasury – approximately 10 billion francs last year. The 13th pension will place an additional burden of 840 million euros on the federal budget from 2026.
Given the tight budget, Finance Minister Karin Keller-Sutter (60) urged counter financing. The federal government should not be burdened additionally. With success: the federal contribution will be temporarily reduced to 18.7 percent from 2026 – until the next AHV reform comes into effect. This means that the federal contribution will still amount to approximately 11 billion francs in 2026.
The discount means less money ends up in the AHV fund. Here too, the government enters the ring with two variants. One variant provides for the missing funds from the federal government to be charged to the AHV fund. As a further variant, she discusses an additional increase in wage contributions by 0.2 percentage points or a combination solution with 0.1 percent more wages and 0.2 percent more VAT.
However, the unions’ proposal that the cantons – as before – should also make an AHV contribution did not go ahead.
The next reform will take place in 2026
Baume-Schneider must now draw up a consultation template by the summer. The final message to Parliament should be sent in the autumn.
The SP woman will not be left without work even after the extra financing. In 2026 it must implement the next AHV reform for the period after 2030. Due to rising life expectancy, the AHV is once again in danger of facing shortages. The SP woman must also look at structural measures such as a higher retirement age and other financing measures.
Source:Blick
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