The Federal Council has proposed a plan to close gaps in tax-privileged private pension provision through purchases in the future. This decision was made at a meeting on November 22nd, with changes to the regulation open for consultation until March 6th, 2024. However, there are differing opinions on this proposal.
Representatives from various sources have expressed their thoughts on the Federal Council’s proposal. Center Councilor Erich Ettlin expressed disappointment with the limitations of the proposal and criticized it for not going far enough. Critics argue that the fear of tax losses is hindering the implementation of the proposal, despite its potential benefits for enhancing private provision for retirement.
The Vorsorge Schweiz association also criticizes the proposal, stating that it is not beneficial for individuals aged 30 to 50 and creates unnecessary administrative hurdles. They are concerned about the complexity of the process and the requirements for proof of income, which could exclude certain groups from making purchases in Pillar 3a.
Surveys indicate that many people have contribution gaps in Pillar 3a, but there are criticisms that this proposal primarily benefits high-income households and could lead to tax losses that impact the wider population. There is also apprehension about how this competition between Pillars 2 and 3 might affect occupational pension provision.
Overall, there are mixed reactions to the Federal Council’s proposal on closing gaps in Pillar 3a through purchases. While some see it as a positive step towards enhancing private pension provision, others raise concerns about its complexity, potential tax losses, and exclusion of certain groups from benefiting from this initiative.