USS calls for higher pensions for Swiss pensioners (cross-border guide)

Context

In a nutshell

The Swiss Union of Trade Unions (USS) is calling for higher rents in the second pillar and a minimum interest rate of 3% by 2027. The new pensions of pension funds were 15% lower than in 2015, despite the good financial situation of social security institutions. The USS delegates decided to launch an offensive to increase the rents of the second pillar.

Key facts

• What: Higher annuities in the second pillar and a minimum interest rate of 3% by 2027.
• When: Not specified.
• Where: Bern.
• Who: delegates of the Swiss Union of Trade Unions.
• Amount: 15% less than in 2015.

The Federal Council has set the minimum interest rate for the compulsory part of occupational pensions at 1.25%. The USS decided to support the VAT increase on which voters will be called upon to vote at the end of November.

The 'thirteenth' AVS annuity will be paid for the first time at the end of the year. The union also intends to mobilize policyholders of the coffers deemed 'particularly stale', encouraging them to ask for changes.

Those who receive less interest on old-age capital also receive a lower annuity, as happened in some cantons such as Ticino, where second-pillar annuities were 10% lower than the national average.

The minimum interest rate is set by the Federal Council for the compulsory part of occupational pensions. According to the regulations in

Operational details

The Swiss Trade Union (USS) has decided to support the VAT increase on which voters will be asked to decide at the end of November. This decision was taken after a meeting with representatives of trade unions and workers' organisations. The main objective is to increase the pensions of Swiss pensioners, which have been falling in recent years due to rising interest rates.

The union stressed that the minimum interest rate is set by the Federal Council for the compulsory part of occupational pensions. This means that interest on pensioners' annuities has already been set at a minimum level, and cannot be increased further.

The Swiss Trade Union also stressed that the “thirteenth” AVS annuity will be paid for the first time at the end of the year. This means that Swiss pensioners will receive an increase in their pension, which will be calculated based on their annual income.

The USS decision has raised concerns among industry professionals, who fear that a rise in interest rates could lead to a decline in pensioners' pensions. However, the USS argues that an increase in VAT could be a more effective solution to increase pensioners' pensions.

For example, if a Swiss pensioner has an annual income of 40,000 Swiss francs, his pension could increase by 2,000 Swiss francs

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Key points

USS calls for higher pensions for Swiss pensioners

The decision of the Swiss Union of Trade Unions (USS) to support the increase in the value-added tax (VAT) could have significant impacts on the Swiss economy. Swiss citizens will be asked to comment on this increase at the end of November. The union also intends to mobilize policyholders of the coffers deemed 'particularly stale', encouraging them to ask for changes.

The question of increasing VAT is particularly felt in cities such as Bern, Zurich and Geneva, where demographic pressure is highest and social housing is often underrepresented. According to the USS salary calculator, a 10% VAT increase could reduce the purchasing power of Swiss pensioners by about 10-15% depending on their income.

The union argues that raising VAT would be a way to reduce the tax burden on pension funds and allow pensioners to enjoy greater financial security. However, some experts argue that raising VAT could have negative side effects on the economy, such as raising prices and reducing demand for goods and services.

The USS also called for the pensions of Swiss pensioners to be increased, in order to take into account inflation and population growth. According to the union, an increase in annuities of 2-3% per year would be necessary to ensure that the

Source: tio.ch