Federal Council opposes abolition of AHV marriage penalty - are you affected?

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• The Federal Council rejects the centrist popular initiative to abolish the AHV marriage penalty and does not recommend a counter-proposal.
• According to the government, the proposal would cause excessive additional costs.
• Lifting the pension cap to two full AHV pensions would cost the AHV over CHF 3.6 billion a year from 2030.
• The Federal Council emphasizes that married couples already benefit from other AHV advantages and refers to a comprehensive AHV reform by 2026 instead of isolated individual measures.

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The Federal Council does not want married couples to continue to receive two full AHV pensions. As announced, it is recommending a "no" to the centrist popular initiative to abolish the AHV marriage penalty and does not want a counter-proposal. Parliament can now decide.

Married pensioners currently receive a maximum of 150% of the maximum AHV pension. This is currently CHF 3780.

The centrist popular initiative "Yes to fair AHV pensions for married couples too - finally abolish discrimination against marriage!" wants to change this and abolish the pension cap. Conversely, it demands that married people who are not gainfully employed must pay contributions to the AHV.

The bottom line: 3.6 billion francs

If two full pensions had to be paid out, this would cost the AHV a total of CHF 3.6 billion in 2030. According to the Federal Council, this is likely to be around CHF 4.1 billion in 2035. The federal government, which contributes to the financing of the AHV, would have to pay around CHF 770 million in 2030 and around CHF 870 million in 2035.

The initiative makes no proposal for financing these costs, Social Affairs Minister Elisabeth Baume-Schneider criticized to the media in Bern. The financial situation of the AHV is strained due to the 13th AHV pension, the financing of which has not yet been settled, as well as for demographic reasons.

In order to finance the two full pensions, salary contributions would have to be increased by 0.6 percentage points or VAT by 0.8 percentage points, depending on the financial target, for example, according to the Federal Council. Couples with a relevant income of currently CHF 90,720 would benefit from the abolition of the ceiling.

According to federal calculations, this is around 700,000 people or 90 percent of all married couples. Unmarried, widowed or divorced people with low incomes would go away empty-handed, Baume-Schneider pointed out. According to the Federal Council, however, everyone would have to share the costs if the initiative was approved.

Immigration as the main cause

Whether due to forgotten registration during studies, long stays abroad or an extended period of illness - gaps in AHV contributions can arise in a variety of ways. And they have tangible financial consequences. It is also easy to lose track if you change employer frequently. Particularly serious: undeclared work - because it leaves not only legal but also insurance-related traces.

According to experts, most of the gaps are probably due to migration. Anyone who comes to Switzerland at the age of 30 or 40 inevitably has fewer years of contributions - and therefore automatically has a pension gap. The calculation is simple - and painful: 2.3 percent is deducted from the AHV pension for every missing year of contributions. With a maximum pension of CHF 2520 per month, this amounts to around CHF 60 per year.

"A good half of those affected are missing three to four years of contributions - which means over 200 francs less in their wallets each month," AHV expert Gabriela Medici warns Blick. In the midst of the debate about a 13th AHV pension, the focus is also on time pressure. The Federal Council admits: "The timetable is tight and leaves little room for maneuver."

"The advantages outweigh the disadvantages"

However, the Federal Council has other arguments against lifting the pension cap for married couples. Married people benefit from AHV and IV benefits that cohabiting couples are not entitled to and which would outweigh the disadvantages of the pension cap, said Baume-Schneider.

The income earned during the years of marriage is divided equally in the event of divorce or death, but also if both spouses are entitled to a pension. This benefits low incomes and therefore women in particular, said Baume-Schneider.

Widows and widowers are entitled to a widow's supplement of 20 percent on their AHV or IV pension. Only married people receive widow(er)'s pensions. Adjustments to these survivors' pensions are pending in Parliament. The responsible committee of the National Council wanted to wait for the message on the Mitte initiative before discussing the matter.

The Federal Council writes that removing the cap and leaving these other benefits for married couples would put unmarried people at a disadvantage. Higher salary contributions or more VAT would not be appropriate for employees and employers, especially in terms of intergenerational fairness.

Next reform coming

The government rejected the idea of setting the legal ceiling for married couples at 170% of the maximum pension instead of the current 150% due to the costs involved. The Federal Council does not want to consider pension provision independent of marital status in isolation.

The Federal Council also does not want a direct counter-proposal - i.e. a new constitutional article. It does not want to enshrine the calculation of pensions in the Federal Constitution.

The next major AHV reform is coming. The Federal Council must submit a proposal for the period 2030 to 2040 to Parliament by the end of 2026. There is a will to finance and modernize the system in line with the changes in society, said Baume-Schneider at a closed meeting on the topic in the Federal Council.