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Vote of March 3, 2024 – People and states decide on a 13th AHV pension – News

3 March 2024

This Sunday the initiative for a 13th AHV pension will be voted on.
According to the last SRG survey, the result is close.

The popular initiative for a 13th AHV pension requires a “thirteenth” for the AHV pension, as many working people know it. Specifically, all retirees should be entitled to a supplement amounting to one twelfth of their annual pension; This would therefore be increased by 8.3 percent.

The initiative also demands that the supplementary benefits (EL) are not affected even if the 13th AHV pension is introduced. It does not provide any guidelines for financing the 13th AHV pension.

“Dwindling purchasing power” versus “watering can principle”

The popular initiative was launched by the Swiss Trade Unions (SGB). The proponents argue primarily with dwindling purchasing power and rising rents. Since 2021, inflation and health insurance premiums have consumed an AHV monthly pension.

Legend:

SRF

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The opposition calls a 13th AHV pension based on the watering can principle anti-social and expensive. The opponents do not deny that there are needy pensioners who have to get by on little money. However, she and Social Affairs Minister Elisabeth Baume-Schneider advocate targeted support for pensioners with low incomes.

Controversial cost issue

The federal government assumes costs of 4.1 billion francs for the introduction of a thirteenth in 2026. Five years later it would be 5 billion francs – due to the increasing number of pensioners. In the opinion of the initiators, the AHV currently has enough financial cushion to cover the additional expenses. Only from around 2030 would wage contributions from employers and employees each have to be increased by 0.4 percentage points.

Opponents are of the opinion that wage contributions and/or VAT would have to be increased immediately after a yes vote in order not to endanger the AHV. We are talking about 0.7 percentage points higher wage contributions and an increase in VAT by one percentage point to 9.1 percent.

Hurdle stands more

Two weeks before the voting date, 53 percent in the SRG survey supported the proposal and 43 percent rejected it. 4 percent were still undecided. “It will be exciting until the end,” said Lukas Golder from the GFS Bern research institute, which conducted the survey, about the survey results.

However, the majority of estates could become a decisive hurdle for the popular initiative.

A popular initiative is accepted when the majority of those who vote say yes to it (majority of the people) and the majority of the cantons also agree (majority of the cantons).

The voting results of the individual cantons are counted for the majority. If a majority of voters in a canton agree, the class vote of this canton counts as yes. The class votes of the former half-cantons OW, NW, BS, BL, AR and AI each count as half a vote.

The cantons therefore have a total of 23 votes. The majority was achieved with 12 votes. A tie of 11.5 votes to 11.5 counts as a rejection.

It is therefore entirely possible that the proposal will reach popular support – but will ultimately fail due to the veto of the cantons. According to Golder, the evaluation of the survey shows that more stalls could be achieved.