2024-08-21 09:50:11
Two issues will be submitted to a popular vote on September 22nd, 2024.
First, and the less controversial of the two, is the vote “For the future of our species and our landscape (Diversity Initiative).”
It calls, as its name suggests, for increased funding to preserve the country’s biodiversity and ecosystems.
If accepted, this proposal will put into law the obligation of the cantons and the federal government to increase the protection of nature, landscapes, and historical buildings and sites, by allocating more funding to this pursuit.
Pension reform
This vote, which seeks to reduce the second pillar pension (LLP) is much more controversial – and for good reason.
But what exactly is a second pillar pension (LPP)?
Like the first – AHV / AVS state pension – the second pillar is also mandatory.
It is designed to enable retirees to maintain their standard of living in retirement.
To benefit from the plan, you must pay monthly contributions throughout your working life, if you:
- If you are at least 17 years old
- It pays in the first column
- He is in permanent employment and earns at least 22,050 francs a year
You and your employer each pay half of the required amount, which depends both on your salary and your age.
From 25 to 34 years, the contribution is 7 percent of your salary; 35 to 44, 10 percent; 45 to 54 years old, 15 percent; and 55 to retirement, 18 percent – each of these contributions is split in half between you and your employer.
As a general guideline, the amount of the first and second pillar pension is usually 60 percent to 70 percent of your final salary. (People who want to earn more money, can invest in the third pillarwhich is not necessary, but helpful.)
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Why is the pension reform vote causing controversy?
The reform calls for a cut of the LPP from 6.8 to 6 percent, which means that taxes will drop by 3,240 francs a year on average.
The Federal Council, which supports this move, argues that this reform is to ensure that pensions can support the effect of longer life expectancy among those who have retired.
However, for many retirees, the second pillar is an important addition to the retirement income and they do not want to see it reduced.
But there is another reason.
In light of recent events, many people in Switzerland have doubts about the government’s pension calculations.
In the past few weeks, it has been revealed that the Swiss Social Insurance Office has calculated the projected expenditure for the old-age pension until 2033: the annual expenditure is likely to be around 4 billion francs Less than the original estimate.
Based on this news, many people in Switzerland now say that there is probably enough money in the pension funds, and that a cut in the LPP is not needed.
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