In the latest book from Avenir Suisse, the authors argue for comprehensive transformation of the 1985’s pensions funds. The reforms include giving employees more freedom of choice, simplifying regulation, and creating a tenable basis for the long-term funding of the social security system. Their aim is to add a liberal point of view to the ongoing debate on the future of the second pillar (occupational benefits) in Switzerland.
A summary of the most important reforms proposed in the book:
- People should be able to determine investment strategy for the entire additional mandatory component, and in the medium term should also have a free choice of pension fund.
- The conversion rate should be removed from political influence so that it no longer lags behind reality and leads to inflated pensions.
- The pension fund landscape is too heterogeneous. It should be defined precisely across the board to enable a true comparison of administrative costs and funding ratios. Ultimately, centralising oversight and abolishing the preferential treatment of public-law schemes would level the playing field for all pension funds.