Baume-Schneider: “People want a strong AHV for everyone”

Published: Sunday, Mar 3rd 2024, 18:01

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"The population wants a strong AHV for everyone": these were the words used by Social Affairs Minister Elisabeth Baume-Schneider to comment on the yes vote for the 13th AHV pension. The Federal Council wants to implement the proposal on time.

2.5 million senior citizens will receive a 13th AHV monthly pension from 2026, Federal Councillor Baume-Schneider told the media in Bern on Sunday. The Federal Council, which had recommended that the bill be rejected, has taken note of the result of the vote.

Around 58 percent of voters and 16 cantons approved the popular initiative launched by trade unions. After a long and very intensive debate, the result was clear, said Baume-Schneider. The argument of purchasing power had dominated the referendum campaign.

Solidarity dimension

The voters had emphasized the solidarity dimension of the AHV, said the Minister of the Interior. For many pensioners, the AHV is their main source of income and a reliable social security scheme. The population wants an efficient and solidary AHV that guarantees everyone a life in dignity. The Federal Council will take this into account in its proposal to stabilize the AHV from 2030.

This will come at a cost, the Social Democrat noted. In order to keep the AHV fund in balance, additional income was needed quickly. Baume-Schneider mentioned higher salary contributions and an increase in VAT.

She will present the basis for the discussion on the AHV fund to the Federal Council in the coming weeks. "This should enable us to make a decision on financing before the end of the year."

The federal government will have to contribute CHF 800 million to the financing of the 13th AHV pension from 2026. The federal government will have to find a solution to compensate for this amount, said Baume-Schneider. In view of the financial situation, the various interests must be weighed up. It is still too early to make more precise statements, Baume-Schneider said in response to a question from journalists.

Higher retirement age off the table

She only briefly commented on the rejected pension initiative: "Restructuring the AHV by raising the retirement age is not an issue for the electorate." This concept was obviously not convincing. After the wafer-thin Yes to raising the retirement age for women and the clear No to a higher retirement age for men and women, the issue is currently off the table.

According to Baume-Schneider, the discussions will resume in 2026 when it comes to the long-term financing of the AHV. However, it should be noted that the people are "not fascinated" by an upward adjustment of the retirement age.

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