The number is dramatic: 37 percent! This is how large the pension difference between retired men and women is across all three pillars. If the difference in the AHV is just 3 percent, there is a huge gap between the sexes in the pension funds. Women there receive an average of 63 percent less pension than men.
This is shown in a report by the Federal Social Insurance Office (FSIO) to the National Council Social Commission, which is currently dealing with the reform of the occupational pension scheme (BVG). “The gap in the total pension is mainly due to the large differences in the benefits of the occupational pension,” it says. The situation has barely improved in recent years. Men who retired in 2018 received around 2,800 francs a month from the pension fund, while women only received 1,600 francs.
Women more often with lower wages
There are various reasons for the gap: women are more often employed in low-wage areas and part-time. As mothers, many reduce their workload, interrupt their work or withdraw from work altogether. This has negative consequences for their second pillar. “The situation is dramatic: Almost a third of all new pensioners have no pension,” says SP co-boss Mattea Meyer (33).
The politicians across party lines agree on the goal: They want to close the pension gap between the sexes – or at least reduce it. The Federal Council wants to halve the so-called coordination deduction to CHF 12,445. With a smaller deduction, the insured wage bill in the BVG compulsory section increases. This means that more wage contributions flow into the provision. In particular, lower wages or part-time workers are more likely to receive a pension fund.
GLP-Mettler wants to abolish the deduction
But that is not enough for GLP National Councilor Melanie Mettler (43, BE). She demands the cancellation of the coordination deduction. “This solves various problems at once,” she is convinced. Not only low laborers could build up a better pension in this way, but also people with different jobs. Because if the coordination deduction is used by every employer, the insured wage bill drops dramatically.
This is shown by a numerical example from the BSV: This is about an annual wage of 60,000 francs. If you receive this from only one employer, the old-age pension is around 12,000 francs. If the total wages are divided between two incomes with 40,000 and 20,000 francs, the pension drops to around 5200 francs. And if someone has three part-time jobs at CHF 20,000 each, there is no pension at all. “Today’s system is geared towards the traditional single-income household,” complains Mettler. “That no longer corresponds to social reality.”
Support for this idea is also coming from the liberal mind: “We promised to do something for low incomes and part-time workers. Abolishing the coordination deduction is the best solution, ”says FDP National Councilor Regine Sauter (55, ZH).
SVP relies on the Asip model
Another approach is on the table with a percentage deduction on the respective income. SVP National Councilor Thomas de Courten (54, BL) wants to set the coordination deduction at 60 percent of income, limited to a maximum of 21,300 francs. He relies on the model of the Asip pension fund association, which would worsen the pension situation compared to the Federal Council model.
Central National Councilor Benjamin Roduit (58, VS), on the other hand, proposes a 40 percent deduction. Income of up to around 40,000 francs would be better off than in the Federal Council proposal, while those above would be worse.
Left wants social partner compromise
The left is basically sticking to the Federal Council model so as not to endanger the social partner compromise that has been hard-fought for by employers and unions. “A complete abolition of the coordination deduction would be associated with far too high costs,” says SP National Councilor Meyer. “That costs around 1,500 francs a year due to higher contributions – for all employees, regardless of their wages.”
That is too much of a burden for people with low incomes and part-time workers. It also relies on the pension supplement of 100 to 200 francs proposed by the Federal Council. “This brings an improvement financed by solidarity.”
Care credits for 2nd pillar
The SP also wants to improve women’s pensions in other ways. “The problem with the second pillar is that unpaid care and nursing work is not recognized as a pension,” says Mattea Meyer. With the current submission, only those who have paid into the pension fund for 15 years will receive the pension supplement. “Once again, women who work part-time and have low wages and are therefore not insured go away empty-handed,” criticizes Meyer. Her party therefore supports the demand that the care credits be offset against these necessary 15 years of contribution in the 2nd pillar. “In this way, those affected also receive the pension supplement.”
The National Council Commission will deal with the proposal again on Friday. What is called for is a first reading with provisional decisions. Depending on the outcome, politicians may want to go over the books again on the complex topic. Definitive decisions should only be made after the summer break.
The coordination deduction is not the only element that is disputed in the pension fund reform. It is also about the amount of the wage contributions for the retirement credits.
And important for the young: the beginning of the obligation to pay into the 2nd pillar. The Federal Council wants to leave this at 25 years as it is today. But several suggestions want to start earlier – for example at 21 or 20 years. This would mean that young people would start saving earlier for old age, but would also have less money in their pockets because of the deductions.
Contribution rate of 12.5 percent
FDP National Councilor Philippe Nantermod (37, VS) goes the furthest: boys should pay into the second pillar from the age of 18. To do this, he would like to set the contribution rate for this “new generation” at 12.5 percent – for life.
This would mean that older employees would no longer be punished with higher contribution rates in the future. For Nantermod it is clear: “With this we are renewing the BVG with a view to the society of the 21st century.” (rus)