Council of States brooding on BVG reform

The Council of States has taken the first steps in the reform of occupational pensions (BVG). He opted for a new model for the coordination trigger. This is to provide low-earners and multiple employees with a better pension. No decision has yet been taken on how the interest rate cut will be compensated for the transitional generations.

Not entirely unexpectedly, the discussions in the small room on Tuesday turned out to be heavy and lengthy. The plenary was unable to complete the highly complex bill as planned. The three resolutions so far on key points in the proposal have all been approved by the majority of the preliminary advisory committee.

keep promises

After the very tight acceptance of the AHV bill by the population in the autumn, all speakers wanted to keep their promise to help low-income and part-time working women in particular to improve their retirement prospects. Everyone understands something differently depending on their political orientation. The Council of States discusses four models, some of which differ greatly in terms of content.

The Council of States then decided that 15 percent of the salary subject to AHV should now be calculated as a coordination withholding in the compulsory part of the BVG. This amount is deducted from the relevant salary (gross annual salary) in the second pillar. This is how you receive the insured salary. Today, this deduction is set at just under 25,100 francs.

Due to this high deduction, employees with a low wage or employees who work for several employers cannot or only sparingly insure their income in a pension fund and therefore cannot save a pension for old age.

“Quantum Leap” or “Leap into thin air”?

Erich Ettlin (center/OW) spoke of a “quantum leap” that the committee proposed. The new coordination deduction is a major leap forward in terms of additional employees and low-income earners. While the new model will be more expensive for employees and employers, it will be “acceptable” when calculated on a monthly basis, because in return more people will be able to save more retirement capital.

The National Council would like to have a fixed coordination deduction as before, but would like to halve it from just over 25,000 to about 12,500 francs today. From an administrative point of view, that would be the much simpler solution, Damian Müller (FDP/LU) explained to the Grand Chamber on behalf of one of the minorities who prefer this solution.

The majority’s 85 percent solution is “a leap of faith”. The corresponding wage deductions for low-wage part-time workers are higher than what they ultimately get in return. Federal councilor Alain Berset also warned that the costs would rise too high with this model.

Maya Graf (Greens/BL) claimed the exact opposite. It is necessary to correct the system error of the high fixed coordination deduction. With the proposed solution, everyone would be equally well insured, no matter how high their income. The higher wage deductions are therefore “reasonable”.

lower the entry barrier

To enable more low-wage earners to have a pension fund, the Council of States also decided on Tuesday that contributions to the pension fund can be made from a minimum annual income of CHF 17,200. This entry threshold is currently around CHF 21,500. The National Council even wants 12,548 francs. Unlike the National Council, the States Council also wants to leave the start of saving at 25 years and not reduce it to 20 years like the Grand Chamber.

The core of the proposal, however, is the transitional measures for all those who, due to the planned reduction in the conversion rate from 6.8 to 6.0 percent, no longer save enough pension capital for their retirement, so they can no longer compensate for this pension. loss of about 12 percent over time.

Without full compensation for all, the reduction in the conversion rate on which the revision is based is “unconstitutional”, declared former trade union leader Paul Rechsteiner (SP/SG). All the models discussed are much worse than the model of the social partners, which has also been supported by the Federal Council. It is foreseeable that the proposal will be decided at the ballot box. “And that’s where the wage earners will decide, not the banks and insurance companies.”

Pirmin Bischof (centre/SO), on the other hand, said the commission had been quite successful in fulfilling the mandate of the National Council to solve the problem of low wages and multiple jobs. “We didn’t quite succeed,” but the committee model is better than the National Council and Federal Council solution. (SDA)