Towards the end of discrimination deemed unacceptable
Today, widows receive a pension for life, while widowers only receive benefits until their youngest child reaches the age of majority. This difference in treatment has been criticized by the European Court of Human Rights as discriminatory.
Faced with this decision, the Federal Council has decided to act to re-establish equality between widows and widowers. Its proposed reform would abolish lifetime pensions for both widows and widowers.
A surviving parent’s pension up to the child’s 25th birthday
The project’s main innovation concerns widows and widowers with dependent children. They will now be entitled to a “surviving parent’s pension” up to the child’s 25th birthday, or beyond in the event of disability.
This provision will enable bereaved parents to receive financial support for their children’s upbringing, which is often an economically difficult period. It will apply regardless of the parents’ marital status.
A transitional pension for people without dependent children
However, the Federal Council has provided a safety net for people with no or no more dependent children. They will receive a two-year “transitional widow’s pension” to help them through this transition period.
This measure is designed to prevent the most vulnerable widows and widowers from finding themselves in a precarious situation as a result of the abolition of lifetime pensions.
Supplementary benefits for the most vulnerable
Finally, the Federal Council has provided an additional safety net for widows and widowers aged 58 and over who fall into precarious situations. They will then be eligible for supplementary OASI and DI benefits.
As for beneficiaries under 55, their pensions will be withdrawn two years after the project comes into force, unless they still have dependent children.
A major financial challenge for AHV
This ambitious reform would reduce AHV spending by around CHF 350 million by 2030, including savings of CHF 70 million for the Confederation. A major challenge in a context of demographic ageing.
The Federal Council’s message has been forwarded to Parliament. Public consultation will continue until March 29, 2023. Please let me know your thoughts on this important forthcoming development!
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