Married couples will be more disadvantaged

In future, the widow's pension will also be available for cohabiting couples, but the pension cap for married couples will remain. The Federal Council is thereby plunged into a dilemma - and has missed a major opportunity.

The Federal Council (Bundesrat) likes to present itself as modern and progressive - but only when it suits its (savings!) agenda.

It demonstrated this impressively last Wednesday, when it passed a reform that will lead to a reduction in widows' pensions. Its justifications were reminiscent of an equal opportunities seminar. The aim was to adapt the AHV survivors' pension (Hinterlassenenrente) to social developments and the changed distribution of roles in families and working life. After all, women are increasingly working today and, in view of the increasing shortage of skilled labour, a lifelong widow's pension is no longer justified.

The Federal Council wants to cut widows' pensions - and at the same time open them up to cohabiting couples      Photo: Getty
 

In future, there will only be a pension for widows and widowers until their children are 25 years old. If the children are older, the Federal Council envisages a transitional pension of two years until the surviving parent can support itself again. If someone is at least 58 years old at the time of their partner's death and at risk of poverty, the reform provides for supplementary benefits (Ergänzungsleistungen).

Don't misunderstand: There are very good reasons for reforming the widow's pension. The current system actually reflects an outdated role model, in which the man is the breadwinner and the woman is the vulnerable and financially dependent housewife. The fact that widowers receive less money than widows was also an expression of this social concept, until the European Court of Human Rights in Luxembourg intervened and condemned Switzerland for discrimination.

Marriage is no longer life insurance, as the Federal Supreme Court (Bundesgericht) recently ruled. In recent years, the judges in Lausanne have acted as equality turbos, and have tightened the rules on maintenance after divorce. Since then, it has become clear that the traditional division of roles is a risk for women. They would do well to maintain their economic independence - especially if they have children.

The reform of the widow's pension fits in with this development. In future, it will no longer be based on the number of years of marriage, but on the actual need for protection. And this is greatest while the children are still young or in education. This is why the Federal Council also wants to pay the AHV survivor's pension to cohabiting couples in future. In other words, regardless of marital status.

The problem with this is that the Federal Council is not acting consistently. It does not want to change the existing ceiling for the AHV pensions of married couples'. Married pensioner couples together receive a maximum of 150% of the maximum pension, whereas cohabiting couples receive 200%. Unmarried couples can thereby receive up to CHF 4,900 per month - CHF 1,225 more than couples with a marriage certificate.

The Centre Party (Der Mitte) wants to abolish this AHV discrimination against married couples by means of an initiative, but the Federal Council has said no to this. Abolishing the pension cap would, of course, be expensive. But it’s a mystery how the Federal Council intends to justify this discrimination against married couples in the AHV in future, while extending the survivors' pension to cohabiting couples,.

Until now, the Federal Council has taken the view that married couples enjoy a marriage bonus because of the tax contribution privilege, the widow's pension and the widower's supplement for pensioners. The benefits for married couples actually amount to CHF 3.6 billion. The disadvantage due to the pension cap is CHF 3.4 billion. The marriage bonus therefore amounts to CHF 200 million - and will continue to dwindle due to the reorganisation of the widow's pension.

With individual taxation, Parliament is on the way to introducing taxation independent of marital status. The Federal Council wants to make the widow's pension independent of civil status. It would also be logical to introduce an inheritance law that is independent of civil status. And an AHV pension that is independent of civil status.

That would be a major step forward. And consistently progressive.