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A broad alliance began collecting signatures on Friday for the referendum against reform of the pension fund in Bern. The alliance of trade unions and party representatives believes that the BVG reform passed by parliament will lead to pension losses and huge extra costs for normal earners.
It criticizes that the only winner of the “failed” template is the financial sector. A middle-class majority in parliament pushed through pension fund reform against opposition from the left in mid-March.
“Template Outdated”
For the chairman of the Swiss trade union federation (SGB) and SP national councilor Pierre-Yves Maillard (55), the template has become outdated. “Reducing the conversion rate is an idea from the era of negative interest rates. Due to the turnaround in interest rates and inflation, pensions should now be increased, not further reduced,” he said at a media conference in Bern.
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 recently had a narrow vote with the bourgeois parliamentary majority on the AHV reform, which raised the retirement age for women to 65.
Now it is the turn of pension fund reform, which a middle-class majority in parliament has pushed through against opposition from 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 real 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 contribution to the pension fund – the so-called old-age discount – will be leveled off with the reform: up to the age of 44, the old-age discount will now 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, along with the middle-class parliamentary majority, recently had a tight vote on the AHV reform, which raised the retirement age for women to 65.
Now it is the turn of pension fund reform, which a middle-class majority in parliament has pushed through against opposition from 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 real 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 contribution to the pension fund – the so-called old-age discount – will be leveled off with the reform: up to the age of 44, the old-age discount will now 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)
“Anyone who is committed to decent pensions and wants to increase purchasing power will sign our referendum,” SP co-boss Mattea Meyer (35) said in mid-March after the final vote in the House of Representatives.
“Most have to pay more”
On Friday she doubled down: “This template of the pension fund misses all the set goals. It leads to lower incomes and falling pensions.” And while the insured paid for the expensive template, the self-service mentality of the financial industry remains, according to Meyer.
Katharina Prelicz-Huber (63), National Councilor of the Greens in Zurich and president of the Public Employees Union (VPOD), complained that most – including young people – would now have to pay more. And that for lower pensions, while pension fund pensions have been falling continuously in recent years.
Linke is already rubbing his hands
50,000 signatures are needed for the referendum to go through. But that should be a piece of cake for the left. She’s already rubbing her hands. Because after a narrow defeat in the AHV vote, she envisions a victory in the reform of the pension fund.
One reason: the bourgeois camp is divided. In the final vote, the FDP, SVP, Mitte and GLP supported the bill with a majority. But the large number of abstentions testifies to a lack of euphoria in the middle-class camp. There is also great unwillingness among farmers and traders. (Okay)
Source:Blick
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