Swiss old-age provision – Parliament agrees on key points of BVG reform – News

  • The National Council and the Council of States have come closer together on the question of how the reform of occupational pensions (BVG) should be structured.
  • The National Council has also spoken out in favor of lowering the conversion rate on pension fund capital from 6.8 to 6 percent.
  • In order to improve the situation for low earners after the transitional generation, there should be a percentage deduction from gross wages instead of the fixed amount.

The BVG reform is taking shape. The National Council has followed the Council of States on various key points of the proposal – for example on the question of compensation for lower pensions and the coordination deduction. But the deal remains controversial.

Revision of occupational benefits BVG: That’s what it’s all about


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It’s all about this: The revision is only about the mandatory part of the occupational pension, i.e. 15 percent of the insured. The conversion rate, which converts the capital into an annual pension, is to be lowered from 6.8 to 6.0 percent. This has resulted in some pension cuts. The transition generations should be compensated for this. In addition, women who work part-time should receive better pensions.

This is the status: Although the bill has not yet been fully discussed, the unions have already announced the referendum. They argue that with the turnaround in interest rates, yields will rise, making it unnecessary to lower the conversion rate. But there is also resistance in the bourgeois camp. The trade association in particular argued in advance that wage costs were rising too much. The revision will probably be completed in this session.

This is controversial: The Left still favor the variant of the Bundesrat. For them, low-income earners pay more into the cash register with today’s template, but do not receive more money when they retire. According to the left, women are also among the losers. The bourgeoisie, on the other hand, argue that the current interest rate level of 6.8 percent is too high in view of life and return expectations. They therefore support the current version of the revision. The redistribution from young to old would be stopped and part-time workers would be better off.

For three hours, the grand chamber discussed various differences in the reform. The National Council and the Council of States have now agreed that after the reduction in the conversion rate, 15 cohorts of the transitional generation should receive a lifelong pension supplement on their occupational pension scheme. Around half of this generation should benefit from it.

According to the so-called social partner compromise, the Federal Council proposed a surcharge of 100 to 200 francs per month for 15 years after the implementation of the reform. With 110 to 81 votes, the large chamber now followed the concept of the Council of States.

Legend:

GLP National Councilor Melanie Mettler (front right) discusses with her party colleagues Roland Fischer, Tiana Angelina Moser and Jürg Grossen (from right to left) during the debate on the BVG reform.

KEYSTONE/Peter Klaunzer

The Council Left, on the other hand, has been threatening a referendum for a long time because they see the reform as a “dismantling proposal”. She wanted to return to the original social partner compromise – but was unsuccessful.

From the point of view of FDP national councilor Regine Sauter, it is regrettable that part of the council, especially the left, have already withdrawn from the discussion. “A referendum is a done deal, no matter what the result will be at the end.” You want to bang your head against the wall and there is only your own project, says Sauter.

Manuela Weichelt, National Councilor of the Greens, denied this. “The left is about getting through the social partner compromise.” The FDP would boycott it.

A percentage instead of a fixed deduction should now apply

The councils have also come closer to each other on the question of which part of the salary future pension fund contributions will have to be paid on. A fixed coordination deduction should no longer apply. Instead, 80 percent of the respective salary should always be insured.

Thomas Rechsteiner (middle/AI) pleaded for a percentage coordination deduction. Because a lot has changed in the last few years. “Part-time employment has increased and there are smaller workloads for men and women when they are away for the family.” With a percentage coordination deduction, there is dynamism in the 2nd pillar because part-time work, multiple employees and low incomes are appropriately insured.

There is still one difference: the Council of States wants a proportional deduction of 15 percent, the National Council of 20 percent.

Still open differences – business back to the Council of States

Because differences persist, the bill goes back to the Council of States. Among other things, this involves the so-called entry threshold, which determines for whom a pension fund must be managed at all.

The Council of States is expected to discuss the bill on Thursday. The aim is for the bill to be adopted at the end of the spring session. If she clears the hurdle of the final votes, the people should then have the last word.

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