The upcoming referendum on the BVG reform is a crucial step towards pension fund reform, but it faces a significant hurdle with deliberate misinformation playing a central role. Social Minister Elisabeth Baume-Schneider plans to launch the voting campaign at the beginning of the following week, with a focus on occupational pension provision via pension funds (BVG reform).
Lobbyists and the media often suggest that pension reforms directly create or destroy wealth, but this is not entirely accurate. It’s important to remember that these reforms change distribution rather than creating or destroying wealth. The upcoming referendum on the BVG reform will likely see an increase in misleading information from various sources.
The unions have launched a referendum against the reform, claiming that people will have to “pay more for less pension.” However, this argument is misleading as there will be net winners and net losers, but overall the balance is zero. The Left is in favor of expanding the AHV and resisting the pension fund system, which they see as hindering redistribution.
The reform aims to reduce hidden redistribution from young to old by adjusting the minimum requirement for annual pensions in the mandatory occupational pension scheme. While there are concerns about subsidy withdrawals, reducing conversion rates is still a step in the right direction. Additionally, there will be an increase in total wages affected by wage deductions, providing better protection for low earners and part-time workers. However, expanding insurance also means expanding wage contributions, ultimately leading to increased costs for employees and consumers.
The future of the reform remains uncertain if it fails; potential restructuring options may be explored by supporters of the reform hope to show that the pension fund system can develop despite recent expansion of AHV. Opposition comes from various groups such as industry associations and farmers due to concerns about costs and redistribution. The ballot in November will be a major hurdle for supporters of BVG reform with resistance coming from different sectors including left bloc parts of business community and critics of redistribution in pension systems.
In conclusion, while there are legitimate concerns about costs and redistribution associated with BVG reforms, it’s important not to let misinformation cloud our understanding of these changes’ true nature – they do not directly create or destroy wealth but change distribution.
