The people voted in favor of the 13th AVS pension, but its financing should be postponed until later.Image: keystone
Comment
Politicians from the bourgeois camp are dragging their feet when it comes to financing the 13th AVS pension. In reality, they would seek to impose an increase in the retirement age and are ready to accept a deficit AVS.
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The clear acceptance of the popular initiative for a 13th AVS pension has shaken the very identity of bourgeois Switzerland. For the first time, the people voted on March 3 in favor of a left-wing social extension proposal. The losers find it difficult to accept this, as evidenced by the decision of the National Health and Social Affairs Commission last Friday.
A narrow majority of 13 to 12 voted against a separate financing proposal for the 13th AVS pension. The socialist federal councilor in charge of the file, Elisabeth Baume-Schneider, had proposed an increase in salary deductions, possibly combined with an increase in VAT. It was Zurich liberal-radical national councilor Andri Silberschmidt who provided the impetus for the rejection.
PLR national advisor Andri Silberschmidt continues to bet on a higher retirement age.Image: keystone
The PS reacted strongly to the commission’s decision. “Right-wing politicians are showing themselves to be sore losers,” group co-leader Samira Marti said in a statement. On the other hand, Silberschmidt emphasized at the NZZ that the “band-aid policy” had to end. We cannot continually inject more money into the social system.
The feeling of pressure regarding retirement age
According to NZZ, Silberschmidt is ready to accept losses for the AVS. This would create “pressure” to convince the population to accept a higher retirement age. Such a goal has been pursued for years by the PLR national advisor, but a similar initiative by the Young Liberal-Radicals was also clearly rejected by the people in March.
The Liberal-Radicals categorically refuse to admit any contempt or sabotage of the popular will. “It is indisputable that the 13th AVS pension will be paid from 2026,” declared the president of the party, Thierry Burkart, in an interview with the NZZ published Monday. Concerning the question of financing, a complete assessment is necessary and “not a hasty action”.
Waiting for the next reform
Concretely, this means that right-wing politicians, under the leadership of the PLR, want to resolve the issue during the next AHV reform, which the Federal Council must present by 2026 in response to a request from Parliament. The question of retirement age should also be addressed. According to Thierry Burkart, the main criticism of the rejected initiative focused mainly on automatism.
Consequently, the PLR is ready to finance the 13th pension for a certain time from the AVS compensation fund. However, this fund is supposed to compensate for short-term fluctuations in order to guarantee retirement payments. According to the AVS law, “the AVS compensation fund must, as a general rule, not be less than the amount of annual expenses”.
Recommendation to the Federal Council
The expression “as a general rule” can be interpreted quite flexibly. However, this is a tricky strategy. The AVS is the most widespread social security system in Switzerland. Taking the risk of its “bankruptcy” could be detrimental for right-wing politicians. In other words, they play “Russian roulette”.
It is perhaps for this reason, moreover, that the commission did not adopt the question of financing as a very concrete initiative, but only as a recommendation to the Federal Council. In other words, it is not binding. If the government as a whole plays the game, Elisabeth Baume-Schneider could always present her proposals to Parliament. And there would undoubtedly take place a spicy confrontation.
In this case, the PLR could find itself isolated. Indeed, the president of the Center, Gerhard Pfister, criticized the commission’s decision, and even the SVP cannot be considered a reliable ally for the liberal-radicals in the issue of old age provision. The appetite for AVS experiments should be limited. At the same time, this could give the PS ammunition to obtain points for the vote on bonuses next June.
A global vision on the AVS is necessary due to the demographics of the country and the “yes” to the 13th pension. The PLR’s proposals nevertheless seem poorly developed. A few years will pass, in fact, before the AVS reform is “ready”, a period during which the famous compensation fund will be “bled dry”. But it is not a very good idea to play Russian roulette at the expense of retirees.
Translated and adapted by Noëline Flippe
