Why was this initiative proposed?
Similarly to the the initiative on taxes for married couples, the initiative to remove the capping on AHV pensions for married couples was rejected. But why was it proposed? The 2 initiatives were proposed by the Centre and both were rejected by the Federal Council.
The AHV initiative aims to rebalance the situation between married and cohabiting couples. As with taxesmarried couples are penalized because they receive the maximum 150% of the maximum individual pension, while cohabitants can each receive a full individual pension. (200%).
What were the objectives of this initiative?
Several objectives were targeted by the Centre's initiative:
Abolition of the ceiling on AHV pensions
As its name suggests, the main aim of the initiative to remove the ceiling on AHV pensions for married couples was to get rid of the ceiling on AHV pensions for spouses.
At present, married couples can only receive 150% of the maximum pension, which corresponds to CHF 3,780 maximum.
Put an end to the penalization of married couples
Currently, married couples face a tax disadvantage compared to unmarried couples. Unmarried couples can receive 2 full individual pensions, i.e. up to 200% of the maximum pension.
With these 2 annuities, a cohabiting couple can receive up to CHF 5,040 (CHF 2520 each). There is therefore a significant difference of CHF 1,260 between the pensions of married and unmarried couples. This difference has been the subject of much debate, leading to the proposed initiative to abolish the AHV capping.
Improved purchasing power for married pensioners
If the initiative had been accepted by the Federal Council, the amount of AHV pensions paid to married pensioners would have risen, which in turn would have increased the purchasing power of married couples during retirement.
Exemption from contributions for spouses not in gainful employment abolished
The Centre's initiative also seeks to remove a subsidy for married couples in which one of the spouses does not work. At present, if one spouse does not work, he or she does not have to pay AHV contributions.
His or her share of contributions is then transferred to the working spouse, who must contribute at least 2 times the minimum required. The initiative proposes to cancel this aid if the new pension law is not implemented within 3 years of its adoption.
Why did the Federal Council oppose this initiative?
The rejection of the initiative to remove the ceiling on AHV pensions for married couples was rejected by the Federal Council for the following reasons following reasons:
Financial losses
The Centre's initiative does not provide for a solution to compensate for the inevitable financial losses that will be incurred by the State. State expenditure on AHV would be between CHF 770 million in 2030 and CHF 870 million in 2035.
According to the Confederation, it would currently be impossible to cover these costs, particularly in view of the 13th AHV pension. If the initiative had been accepted, it could have led to increases in the VAT as well as contributions.
Married couples already at an advantage
Although the State recognizes the sense of injustice that results from the caps on AHV pensions for married couples, he believes that they already receive benefits that cohabiting couples do not:
- Revenue sharing: Income earned during the marriage is shared equally between the spouses, which generally increases the pension of the spouse with the lower income.
- Widow's/widower's pension: Unmarried persons can only receive a survivor's pension if they have been married.
- Widowhood supplement: Cohabiting couples are entitled to a widowhood supplement of 20%, whereas unmarried couples are not.
No improvement for low-income earners
The initiative to remove the ceiling on AHV pensions would be particularly advantageous for married couples with high AHV incomes (over CHF 90,720) but would not change the situation for couples (married or not) with lower incomes.
Maintaining the status quo
Like the Centre's initiative on taxes for married couples, the Federal Council is opposed to changing the law on AHV pensions for married pensioners, without proposing an alternative.
The Centre describes this decision as "incomprehensible" and points out that 9 out of 10 retired couples are affected by this cap on AHV pensions, which the party sees as discrimination. Without an alternative project, the situation of retired married couples will remain the same.
Frequently Asked Questions
What has the Federal Council decided regarding the initiative to remove the ceiling on AHV pensions for married couples?
It rejected the initiative to remove the ceiling on AHV pensions for married couples without proposing an alternative.
Why was this initiative proposed?
It was designed to redress the balance between married and cohabiting couples, as married couples receive a maximum of 150 % of the maximum individual pension, while cohabiting couples can each receive a full pension (200 %).
What were the main objectives of the initiative?
Abolish the cap on AHV pensions for married couples, put an end to their financial penalization, improve their purchasing power in retirement and abolish the contribution exemption for non-working spouses.
What is the current maximum AHV pension for a married couple?
It is limited to 150 % of the maximum pension, i.e. a maximum of CHF 3,780.
How much can an unmarried couple receive in total in AHV pensions?
Up to CHF 5,040 (CHF 2,520 each).
How would the initiative have improved the purchasing power of retired married couples?
By increasing their AHV pensions, enabling them to earn an income similar to that of unmarried couples.
