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It was a “chimpanzee” of one year. But now there is an occupational pension reform package (BVG) on the table. With the final vote on Friday, Parliament removed the first hurdle.
But the higher hurdle has yet to come: the voters. The left and trade unions have already announced the referendum. Signature collection will begin in late March — and the required 50,000 signatures should easily come together.
For the SP, the referendum is a “gift” in the middle of the election year, as some conservatives complain. The comrades can use it to conduct their pre-campaign up to the summer holidays. “Anyone who is committed to decent pensions and wants to increase purchasing power will sign our referendum,” says SP co-boss Mattea Meyer (35), already in a campaign mood. “We have to go back to field one to find a decent solution.”
In any case, the voting date is almost set: March 3, 2024. Then there will be a denouement. The left is already rubbing its hands. After a narrow defeat in the AHV vote, she envisions a victory in the pension issue when it comes to reforming the pension fund.
One reason: the bourgeois camp is divided. In the final vote, the majority of the FDP, SVP, Mitte and GLP supported the bill. But the large number of abstentions testifies to a lack of euphoria in the middle-class camp.
It was a high-quality reform project of SP Minister of Social Affairs Alain Berset (50): The old-age provision 2020, with which he wanted to reform AHV and occupational pensions (BVG) at the same time. But the crash followed in the 2017 vote. With 52.7 percent, no voters sent the pension reform bachab.
The Bundesrat and Parliament then tackled the two pillars separately. Berset, together with the bourgeois parliamentary majority, had a narrow vote last time on the AHV reform, which would increase the retirement age for women to 65.
Now it is the turn of the pension fund reform, which a bourgeois majority in parliament has pushed through against the opposition of the left. These are the main pillars:
Lower conversion rate
The minimum conversion rate in the mandatory BVG plan should drop from the current 6.8 percent to 6.0 percent. This means that for every CHF 100,000 you have saved in pension capital, there is only CHF 6,000 instead of CHF 6,800 in pension per year. This leads to a pension gap of approximately 12 percent.
Pension supplement for transitional generation
It is the actual heart of the template. The impending pension gap must be compensated with a pension surcharge. However, only for a transitional generation of 15 years. It is also classified by age and income. There is a maximum of CHF 200 per month for the first five years, after which it is reduced. Those who have less than 220,500 francs in the pension fund – about a quarter of the insured – will receive the full supplement. Another quarter with a pension capital of up to CHF 441,000 receives a partial supplement. If you have more money in your pension fund, you get nothing. More than half of the insured receive nothing. The pension supplement is financed by deductions from wages – but is capped at CHF 176,400.
Flexible coordination deduction
The amount of the insured salary depends on the so-called coordination deduction. Income minus the coordination deduction yields the insured total wage. Previously, a fixed deduction of CHF 25,725 applied, but this should now be 20 percent of income. The BVG obligation applies up to an income of CHF 88,200. In this case, the deduction would be CHF 17,640. The bottom line is an insured salary of CHF 70,560. The wage contributions should be paid on this.
Adjusted pension entitlements
The salary contributions to the pension fund – the so-called old-age discounts – will be leveled off with the reform: up to the age of 44, the old-age discount will be 9 percent (previously 7 or 10 percent) of the salary subject to BVG. From the age of 45 this is 14 percent (previously 15 or 18 percent). This reduces pension entitlements, especially for older workers. This should increase their chances on the labor market. Just like today, contributions must be paid from the age of 25.
Lower entry threshold
To be insured with a pension fund, you must earn at least 22,050 francs per year with an employer. After a long back and forth vote, Parliament agreed to lower the entry threshold to CHF 19,845. This means that 70,000 people would be insured in a new pension fund, 30,000 more than before. In total, the reduction affects 100,000 employees. (Russian)
It was a high-quality reform project of SP Minister of Social Affairs Alain Berset (50): The old-age provision 2020, with which he wanted to reform AHV and occupational pensions (BVG) at the same time. But the crash followed in the 2017 vote. With 52.7 percent, no voters sent the pension reform bachab.
The Bundesrat and Parliament then tackled the two pillars separately. Berset, together with the bourgeois parliamentary majority, had a narrow vote last time on the AHV reform, which would increase the retirement age for women to 65.
Now it is the turn of the pension fund reform, which a bourgeois majority in parliament has pushed through against the opposition of the left. These are the main pillars:
Lower conversion rate
The minimum conversion rate in the mandatory BVG plan should drop from the current 6.8 percent to 6.0 percent. This means that for every CHF 100,000 you have saved in pension capital, there is only CHF 6,000 instead of CHF 6,800 in pension per year. This leads to a pension gap of approximately 12 percent.
Pension supplement for transitional generation
It is the actual heart of the template. The impending pension gap must be compensated with a pension surcharge. However, only for a transitional generation of 15 years. It is also classified by age and income. There is a maximum of CHF 200 per month for the first five years, after which it is reduced. Those who have less than 220,500 francs in the pension fund – about a quarter of the insured – will receive the full supplement. Another quarter with a pension capital of up to CHF 441,000 receives a partial supplement. If you have more money in your pension fund, you get nothing. More than half of the insured receive nothing. The pension supplement is financed by deductions from wages – but is capped at CHF 176,400.
Flexible coordination deduction
The amount of the insured salary depends on the so-called coordination deduction. Income minus the coordination deduction yields the insured total wage. Previously, a fixed deduction of CHF 25,725 applied, but this should now be 20 percent of income. The BVG obligation applies up to an income of CHF 88,200. In this case, the deduction would be CHF 17,640. The bottom line is an insured salary of CHF 70,560. The wage contributions should be paid on this.
Adjusted pension entitlements
The salary contributions to the pension fund – the so-called old-age discounts – will be leveled off with the reform: up to the age of 44, the old-age discount will be 9 percent (previously 7 or 10 percent) of the salary subject to BVG. From the age of 45 this is 14 percent (previously 15 or 18 percent). This reduces pension entitlements, especially for older workers. This should increase their chances on the labor market. Just like today, contributions must be paid from the age of 25.
Lower entry threshold
To be insured with a pension fund, you must earn at least 22,050 francs per year with an employer. After a long back and forth vote, Parliament agreed to lower the entry threshold to CHF 19,845. This means that 70,000 people would be insured in a new pension fund, 30,000 more than before. In total, the reduction affects 100,000 employees. (Russian)
Skepticism is greatest in the SVP, where party leader Marco Chiesa (48) abstained or National Councilors Magdalena Martullo-Blocher (53, GR) and Esther Friedli (45, SG) even voted against. In particular, there is also resistance from farmers’ representatives. Labor costs for farmers are rising enormously. “What is currently on the table will be incredibly expensive for our industry,” warned Boerenbond chairman and Central National Council member Markus Ritter (55, SG).
There is also great reluctance among traders. The low-wage industry in particular shies away from the additional costs. The hospitality industry has calculated that about 250 million francs more salary contributions should be paid to their pension fund each year. “The additional costs are not affordable for many sectors of the economy,” says the association.
At the last board meeting of the trade association, the low-wage industry expressed its dissatisfaction. Nevertheless, the latter refrains for the time being from making a concrete statement about the reform. “We are in two minds as the template contains both positives and negatives,” says Trade President and Center National Councilor Fabio Regazzi (60, TI). However, a broad substantive discussion has not yet taken place. He wants to leave the version of the slogan to the Chamber of Commerce in due course. Regazzi himself therefore abstained from voting in the final vote.
The French branch organization Center Patronal has already positioned itself. “The reform is not achieving the desired goals, despite considerable costs,” he writes in his most recent newsletter and speaks of a “real mess”. Instead, the referendum offers the left “an ideal platform to express their usual harsh criticism of the second pillar”.
The Swiss Chamber of Pension Fund Experts, on the other hand, opposes the “watering can principle” that the pension surcharge entails. She also finds the reform too complicated, and therefore advocates a new edition.
The reform is also being attacked by the middle class. Or then you just run for cover after the final vote, as an SVP Member of Parliament says: “I agree with the reform, but I will not lift a finger in the voting campaign.” Another national councilor believes that the “dirty work” of finally completing the reform is left to the people.
An assessment with which GLP State Councilor Melanie Mettler (45, BE) disagrees. “We’ve come a long way,” she says. “Despite claims to the contrary from opponents, the pensions of working women, part-time workers and low-wage workers are rising. The pension loss that is happening today will be stopped.”
She sees the fact that the trade association has not yet taken a decision as a positive sign. She wants to use the time until the vote to focus on the positive aspects of the BVG reform. “The reform is the result of our policy of agreement – each side was able to address some of its concerns,” she says. “This voice is far from lost!”
Source:Blick
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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