Federal Council Rejects 13th Pension Disability & Victims

Federal Council Rejects 13th Pension Disability & Victims

Fri, May 24th 2024

Parliamentarians seek to extend the 13th pension to IV and survivors, but the Federal Council rejects due to strained federal finances.

(KEYSTONE/Ti-Press/Alessandro Crinari

Following the vote by the people and cantons in favor of a 13th AHV pension, parliamentarians are pushing to introduce a similar “thirteenth” payment for recipients of IV (disability) and survivors’ pensions. However, the Federal Council opposes this initiative, referencing the current financial strain on federal finances.

Various motions are pending in Parliament regarding this issue. On Thursday, the Federal Council released its response to a motion from the Green parliamentary group. The motion suggests that the entire first pillar should be considered when implementing the 13th AHV pension, and that an annual supplement of one twelfth should also be legally guaranteed for disability and survivors’ pensions.

The Federal Council, while acknowledging that the demand for a 13th survivors’ and disability pension is “fundamentally understandable,” stated that the introduction of these new benefits is “not appropriate” due to the tense situation of federal finances and the potential economic impact.

A 13th survivors’ pension would increase AHV expenditure by approximately CHF 150 million per year, with the Confederation’s share amounting to CHF 30 million. The 13th IV pension would raise disability insurance expenditure by around CHF 460 million in 2026.

The financing proposals are similar to those for the 13th old-age pension, which involve either increasing contributions by 0.1 percentage points or raising VAT rates for insurance by 0.05 percentage points and increasing contributions by 0.05 percentage points. These financing plans remain controversial in parliament.

The Council of States committee will soon discuss the introduction of a 13th IV pension. The National Council’s sister committee is advocating for a “thirteenth” in disability insurance through a parliamentary initiative, which passed narrowly by 13 votes to 12.

©Keystone/SDA

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