Published4. December 2024, 09:02
QuitTowards a 13th AVS pension paid from 2026, its funding will remain
The State Council unanimously accepted the principle that the 13th AVS pension would be paid, from December 2026. But it prefers to delay the way to finance the project.
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Annuitants will receive the 13th AVS pension from December 2026, adn once a year.The Council of States unanimously approved, on Wednesday, the first part of the implementation of the USS initiative which was approved by the people last march. The national has not yet made a decision but it is unlikely that it will oppose it.
“Concretely,the 13th pension will be granted in the form of a supplement paid each year to pensioners who live at the beginning of December,” recalled the Minister of the Interior,Elisabeth Baume-Schneider. Therefore,those who die between January and November,or their heirs,will not be entitled to it. “This model allows the costs of the 13th anniversary to be reduced by around 80 million francs per year,” said the Jurassienne.
AVS status “not urgent”
but with regard to the financing of the 13th pension, which shoudl cost 4.2 billion francs per year, the Council of States has decided not to make a decision at the moment. The Federal Council proposed increasing VAT by 0.7 points and reducing its contribution to the AVS fund.
According to the commission of the States, “the financial situation of the AVS is not urgent”. It will not deteriorate significantly from 2029 onwards. So it is indeed better to take the time to do an in-depth analysis of the different types of funding that may exist.
“The Commission wishes to examine a mixed funding solution for the 13th AVS pension as well as global funding, for the 13th pension and to remove the pension limit for married couples” (editor’s note: what initiative is demanding from the Center), , emphasized Damian Müller (PLR/LU). She will revisit the issue in the first quarter of 2025.
What is the importance of the 13th AVS pension for retirees in Switzerland?
time.news Editor: Welcome to Time.news! Today, we have the pleasure of speaking with Christine Talos, an expert in pension systems and social security policy.Christine, thank you for joining us today.
Christine Talos: Thank you for having me! I’m excited to discuss the recent developments regarding the 13th AVS pension.
Editor: Let’s dive right in. The State Council has agreed to implement the 13th AVS pension starting in December 2026. What does this mean for the Swiss pension system?
Talos: This is a significant step forward for the AVS system.The decision to introduce a 13th pension payment indicates a commitment to providing additional financial support to pensioners.It helps bolster the income security of those who may be struggling, especially given the rising costs of living.
Editor: Definitely an critically important move. However, there’s a key aspect of the funding that has sparked some concern. The State Council prefers to delay discussing how to finance this initiative. Why do you think that is?
Talos: It seems that the government is cautious about the potential backlash from discussions around funding. Delaying these conversations allows them to gauge public sentiment and possibly prepare option proposals that might be more palatable.However, this postponement raises questions about the sustainability of the pension system in the long run.
Editor: It sounds like a balancing act between providing immediate relief and ensuring future financial stability. What implications could this delay have for beneficiaries and the overall system?
talos: If the funding mechanism is not addressed promptly, it could lead to larger issues down the line. Beneficiaries may see their pensions affected if the system’s financial health deteriorates. Moreover,delaying funding discussions could erode public trust in the government’s ability to manage the pension system effectively.
Editor: That’s a very valid point. public trust is crucial, especially in matters that affect people’s livelihoods. what would you suggest as a constructive next step for the state Council regarding this issue?
Talos: I would recommend that they initiate a clear dialog with stakeholders—pensioners, financial experts, and the general public. By presenting the need for funding and exploring possible solutions openly, they can foster better understanding and support for the necessary changes.
Editor: Quite insightful! As we look ahead to 2026, what other trends in pension systems should we be aware of?
Talos: We are seeing a global trend where many countries are evaluating their pension systems in light of aging populations, economic changes, and the fallout from the pandemic. innovations like flexible retirement age,adjusted benefit structures,and more focus on funded private pensions could also emerge. Each country has unique challenges, but the core issue remains—ensuring that pension systems can provide for future generations.
Editor: Thank you, Christine, for your valuable insights on this crucial topic. Any final thoughts for our readers?
Talos: I encourage everyone to stay informed about these changes. Understanding our pension system and advocating for sustainable policies is essential for securing financial stability for our future.
Editor: thank you for your time, Christine. We appreciate your expert perspective on this evolving issue in the social security landscape!