The Swiss social democratic party (SP) and several workers’ unions are laying out their views to change the second pillar pension system following the recent vote against a proposed reform.

“What is needed now is progress in terms of women’s pensions, automatic inflation compensation and an end to rip-offs by banks and insurance companies,” the party said in a statement released soon after the results.

The social democrats demand measures to close pension gaps, especially for women.

“The introduction of education and care credits is central to the second pillar. We must finally give proper recognition to care work,” said Mattea Meyer, member of parliament (MP) for the social democrats in the National Council, the lower house of parliament.

According to Meyer, the coordinated deduction to calculate the share of wages insured under the second pillar has to be more flexible, and new solutions in the second pillar for people who have multiple jobs are necessary.

“People made it clear [with the ‘no’ vote to the reform] that they want higher pensions and not pension cuts. The clear ‘no’ was the result of a [reform] proposal that was only intended to serve the interests of the financial and insurance industries,” Meyer added.

Union Unia has called on pension funds to adjust pensions to inflation, and to close women’s pension gap, in tune with the SP’s view. SP and the unions have the upper hand now to lay out their vision to change the second pillar pension system.

The SP has prepared the ground for a reform of the second pillar, filing two parliamentary motions, three days before the referendum, one to change the legal framework to regularly adjust occupational pensions to inflation, and another to introduce education and care credits.

Lukas Müller-Brunner, director of the pension funds association ASIP, said in an interview that there was “no new major reform in sight” for now, keeping in mind ideas like the ones disclosed in parliament the week before the vote on Sunday 22 September.

“Pension funds have been responding to challenges for decades. The industry, and ASIP, should strive for solutions based on the strength of social partnership. Even without, or with only small legal changes, a lot can be achieved in occupational pension schemes,” he added.

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Luigi is IPE's Berlin-based DACH correspondent. His coverage includes regulation and the latest pensions and investments trends, and, being a native Italian, he also covers Italy’s pensions market. He has reported from Italy and Germany on international politics and business for European and US publications including USA Today, Bloomberg BNA and for the investigative magazine L’Espresso. He was previously Germany correspondent for Mergermarket covering M&A.View full Profile

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