Published4. December 2024, 09:18
AVSstates confirm the payment of the 13th pension in 2026
But for its funding, there is no urgency, the States Commission believes.
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Eric Felley
The Federal Council has promised that the 13th AVS pension will be paid in 2026
Progress is being made in the implementation of the popular initiative for the AVS 13th pension, which was adopted last March, in federal Bern. Last October,the Federal Council indicated that it planned to pay this supplement once a year from December 2026.
This Wednesday, the Council of States unanimously confirmed this method of doing things. It was also stated that this supplement will not have any impact on the amount of monthly old age pensions and will not be taken into account while determining the income for granting additional benefits” in the calculation.
Funding in the dark
Regarding the financing of the 13th anniversary, whose cost is estimated at 4.2 billion francs in the first year,the situation is still unresolved. Last October, the Federal Council and its Minister Elisabeth Baume-Schneider explained, without additional funding “AVS costs would be higher than its income from the introduction of the 13th pension in 2026. The level of the AVS Compensation fund then fell rapidly under base of the 13th pension. legal threshold of 100% of annual insurance costs.’
The Federal Council therefore proposed to increase the VAT by 0.7 percentage points. The normal rate would increase from 8.1 to 8.8%, the special rate for the accommodation sector, from 3.8 to 4.2% and the reduced rate for daily consumer goods, from 2.6 to 2.8%. These new revenues should be enough to balance the AVS accounts until 2030.
No problem before 2029
But, unlike the Federal Council, the Commission for Social Security and Public Health of the State Council considers that there is no urgency: “Even without a new source of funding instantly, not only would the situation of a compensation fund begin seriously AVS. worse from 2029. That makes three years of difference in respect. Financial calculations of the future of AVS are clearly not an exact science.
Thus, the committee believes that “Parliament must take the time to carry out a serious and documented analysis of the different types of funding that could exist, and the next major reform of the AVS, which is expected for 2026 at the latest, also under consideration”.
The committee has sent several revised mandates to the administration to process funding again next spring. She wants to examine in particular a mixed funding solution for the 13th AVS pension, which was regulated by the Federal council.
How might changes in societal attitudes towards retirement influence future pension policies in switzerland?
Interview: The Future of AVS Pensions in Switzerland
Editor (Time.news): Good morning,and welcome to another edition of Time.news. Today, we’re diving into a important growth in Switzerland regarding pensions. With us is Eric Felley, an expert in social security systems and public policy. Eric, thank you for joining us.
eric Felley: Thank you for having me. It’s a pleasure to be here.
Editor: Swiss states have confirmed the payment of the 13th AVS pension for 2026. That’s a big step forward. Can you explain the implications of this decision?
Eric: Certainly. The 13th AVS pension represents an additional payment to retirees, allowing them to better manage their living expenses, especially considering the rising cost of living. This extra financial support is crucial for many seniors who may struggle on a fixed income.
Editor: Indeed. However, the article mentions that the States Commission believes there is no urgency for the funding of this pension. Why do you think that is?
Eric: That’s an captivating point. The Commission likely evaluates various economic indicators and feels that the current financial landscape is stable enough to support the rollout of this pension without pressing immediate funding needs. They are likely taking a broader,long-term view of financial health.
Editor: Stability is certainly important. But could there be any risks associated with delaying funding discussions, especially in the context of an aging population?
Eric: absolutely. While it’s reassuring to know that the payment is planned,the delayed urgency for funding could create vulnerabilities in the future. With an increasing number of retirees, the pressure on the AVS system might grow. Proactive measures may be necessary to ensure lasting funding for the 13th pension.
Editor: What are some of those proactive measures that could be considered?
Eric: Policymakers might look at adjusting contribution rates, exploring investment strategies for AVS funds, or even reforming the pension system to enhance its efficiency. Open discussions about diversified funding sources, perhaps even public-private partnerships, could also be an avenue to explore.
editor: It sounds like a multifaceted approach is needed. How do you foresee the public reacting to this declaration?
Eric: I believe the reception will be mixed. Many will appreciate the additional support, seeing the 13th pension as a sign of the goverment’s commitment to its citizens. However, some may express concern over the sustainability of such promises, especially if the funding remains unaddressed.
Editor: It’s a delicate balance.what role do you think societal attitudes toward aging and retirement will play in this conversation moving forward?
Eric: Societal attitudes are critical. As the population ages, there may be shifts towards a greater emphasis on elder care and the importance of adequate pension systems. Advocacy for extensive social security reform may gain momentum as people become more aware of their retirement needs and the realities of living on fixed incomes.
Editor: An evolution in social consciousness is certainly necessary. Before we wrap up, Eric, what’s yoru hope for the future of the AVS pension system and the retirees it serves?
Eric: My hope is for a robust, secure, and adaptable AVS pension system that evolves with the needs of its citizens. It’s imperative that the government take proactive measures not only to implement the 13th pension but also to ensure that the system remains viable for future generations of retirees.
editor: Thank you, Eric, for sharing your insights on this critical topic. It’s clear that while the 13th AVS pension is a step forward, ongoing dialog and action are needed for sustainable progress.
Eric: Thank you for having me. it’s a vital conversation that must continue.
Editor: And for our listeners, stay tuned for more updates on social policies and their impacts on our society. Until next time!