“These are not Rolls Royce pensions!”. All together diligently in protecting public revenue

BELLINZONA – All united to save pensions. A press conference is on the agenda next Thursday where Samantha Bourgoin of the Greens, Fiorenzo Dadò of the Center, Fabrizio Sirica of the PS and Alessandro Speziali of the PLR ​​will participate. All together with enthusiasm – to quote a famous film – with the aim of giving a clear message to the people of Ticino in view of the vote on June 9 on the institution of cantonal social security (according to the mandatory financial referendum).

If the amendments to the IPCT law were rejected by the people of Ticino, the leaders of the four parties argue, “IPCT old-age pensions by 2031 would be among the lowest public pension funds in Switzerland. The latter is around 70 and 600 insured”. 000 workers (13%) out of 4.6 million insured”.

Here are the key points and reasons why most parties support the need for change.

Let’s compare IPCT with the private sector.

In the private sector it should be noted that more than 1,000 independent pension funds operate, as well as several joint foundations managed by private insurance companies. More than 80% of private workers benefit from pension provisions above the minimum levels of the federal law on occupational pensions (LPP).

In the event that the IPCT law amendment is rejected, low-wage IPCT workers would certainly end up receiving a very small pension between now and 2031, which would be very close to the statutory minimum LPP levels, i.e. those of 20% of the insured worse. workers in the private sector. It would be a very bad situation, which would devalue the insured and bring the low-wage insured groups closer to poverty. But the situation will also be difficult for other ranges of average salaries.

A total of 16,300 workers live in Ticino: their impact on the economy of the state is very important. They work in the State, Municipalities, Corporations, Organizations and Foundations. These are workers, police officers and guardians, state and municipal teachers, care workers in nursing homes and home services, social education workers: ie workers essential to the effective functioning of government, schools, subsidized services, communities and the economy of the state. the whole canyon.

Normal pensions, which should remain normal. And don’t end up staying in Switzerland.

Today the social security of the IPCT, taking into account the costs and benefits, are at the lowest levels compared to the existing public funds in Ticino and Switzerland: People insured by the IPCT therefore do not benefit from any retirement benefits (pension from Rolls. Royce is absent absolutely!)

Reasons for the decrease in the percentage of those who are convinced

A sharp decrease (from 2024 to 2031) of the Conversion Rate (TdC), that is, the factor that, when multiplied by the retirement savings, determines the pension, is necessary (must) to ensure the financial stability of the IPCT due to: 1) an increase in life expectancy 2) decrease in investment income (even if the IPCT will earn a profit on average with other pension funds and among the lower management costs). As a result, the IPCT Board of Directors had to decide to reduce the TdC from the current 6.17% (65 years) to 5.25% through a maximum rate in the period of eight years starting from 1.1.2024, and put it in the average of the Council. other national and cantonal treasures.

Compensatory measures required

Almost all Swiss and Ticino social security institutions that have had to deal with the reduction in the exchange rate have implemented compensation measures for employers and people with active insurance. Without the compensation measures proposed by the amendments to the IPCT Law there would be a certain reduction in the old age pension of 15%, after the 20% reduction that occurred in 2013 and the changes in the pension system.

In order to avoid the extreme poverty of the people insured by the IPCT (disposal of pensions), in 2023 the Government of Ticino reached an agreement with the associations OCST, SIT and VPOD, approved by the Parliament of Ticino and the amendment of the IPCT law. Employees and employers will pay higher contributions on insured wages, to keep the level of IPCT old-age pensions almost unchanged.

Citizens will vote on this amendment to the IPCT law on June 9. Compensation measures have a cost of 14.6 million francs per year for the Canton State, of which 7.2 million must be added to other employers associated with the IPCT. Insured persons will contribute through the addition of taxes to their insured wages and indirectly through the abolition of provisions created by the IPCT for this purpose.

The associations OCST, SIT and VPOD support this compromise, which reduces the reduction of old-age pensions for insured persons to a maximum of 2% (compared to those expected now).

YES is responsible for the proper management of the pension system

The Ticino Parliament approved the amendments to the IPCT law by a large majority. A few MPs rejected it. A good pension system ensures that each generation contributes to and benefits from the system equally, avoiding placing an undue burden on future generations. The majority of the General Council and the Council of Government invite the citizens of Ticino to vote YES to be responsible for the amendment of the IPCT law, to avoid the dangerous disposal of pensions in the IPCT, which could cause serious problems in the management of employees, and the risk of resignations and severe shortages of workers and aggravated social conflicts (from municipal and cantonal schools to the police, from the administration to prisons, social institutions and old people’s homes).