Swiss abroad react angrily to pension cut comments
The Organisation of the Swiss Abroad (OSA) has reacted angrily to the recent remarks of a politician that questioned the role of expat pensioners.
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2 minutes
An apology: this is what the OSAExternal link have demanded of Petra Gössi, the Radical Party politician whose “unacceptable” remarks about the pensions of Swiss abroad provoked a flurry of reaction last month.
Radical Party leader Petra Gössi
aso.ch /Keystone
Interviewed by the newspaper Blick on 21 June, Gössi stated that proposed pension reforms currently under review, which would see payments increase by CHF70 ($72), were “helping the wrong people”.
By this, it turned out, she was referring to retired Swiss living abroad: “those who do not generate any added-value in Switzerland,” she said.
The remarks were controversial both inside and outside the country, and on July 11 the OSA, which represents the interests of the 760,000 Swiss living abroad, sent a letter in response demanding that Gössi “renounce her statement and apologize.”
War of words
“The Swiss abroad feel hurt by this, and feel treated like second-class citizens,” explained OSA Director Ariane Rustichelli to swissinfo.ch. “We have thus underlined in the letter the importance of the Swiss abroad, the fact that liberty of residence is guaranteed by the federal constitution, and that naturally one can’t go around making such statements.”
“It shows that Petra Gössi is not on top of the dossier,” Rustichelli said.
For her part, Gössi has not yet replied to the letter, but it is likely she will do so; she has already shown some signs of backing down from her initial remarks.
“I can understand the irritation that resulted from a somewhat clumsy and insensitive communication,” she told swissinfo.ch. “I take responsibility for that as leader of the party.”
Speaking on Swiss public radio, SRF, the Radical politician also said that she was “sorry if the impression was given that I think retirees should not move abroad.” “I apologize for having given this impression.”
Small numbers
Pension payments made to Swiss citizens living abroad make up 4.69% of the total, an amount which comes to CHF123,364 ($127,414) per month.
Of those living abroad, Swiss nationals receive on average CHF1,151 per month, while non-nationals entitled to a Swiss pension take an average of CHF491.
Most of the pensions go towards Swiss expats in neighbouring France and Italy: 25,000 and 9,500 payments respectively.
swissinfo.ch/dos, with input from Christian Raaflub
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Concerns about the country's old age pension scheme and health insurance coverage were high on the agenda of the most recent assembly of the Swiss Abroad Council. The delegates, meeting on the shores of Lake Lucerne, raised a series of practical problems.
“Social security issues have been a recurring topic for the Organisation of the Swiss Abroad (OSA), just like e-voting or problems for many expats to open a bank account in Switzerland,” said OSA co-director Ariane Rustichelli during Saturday’s meeting in Brunnen.
Since a reform of the old age pension system is underway in the Swiss parliament, the expat assembly focused on a voluntary scheme for Swiss citizens living outside the European Union or the countries of the European Free Trade Association (EFTA).
Currently, 14,000 people from outside the EU/EFTA – or 5% of the total number – benefit from the voluntary old age pension scheme, according to the Federal Social Security Office.
In giving a short history of the voluntary state pension scheme, Roberto Engeler, a leading member of the OSA, conceded flaws in the system since its beginning in the late 1940s.
“Reforms of the scheme were introduced at the expense of the weakest members of society or those who temporarily live outside Switzerland and miss out on regular contributions,” he added.
“The problems are increasing,” he warned and called on the government to consider possibilities for a voluntary old age pension scheme regardless of the country of residence of the Swiss expats.
Reforms
Jürg Brechbühl, director of the Social Security Office, said a revision of the voluntary scheme could be tackled once the mandatory state old age pension scheme was successfully reformed.
Parliament agreed to overhaul the voluntary system in 2001 because of Switzerland's bilateral treaties with the EU, notably limiting the circle of beneficiaries and increasing the rate of contributions.
However, Brechbühl acknowledged that efforts were necessary to improve cooperation with other countries and between the different pension systems, especially when it comes to simplifying the control mechanism.
“It won’t be easy and it will take time,” he cautioned.
The voluntary pension scheme ran up a deficit of CHF37 million ($38.2 million) last year, mainly because the financial payments made exceed the amount of contributions, as Brechbühl explained.
Health insurance
Delegates taking part in workshops at the Swiss Abroad Council also identified a series of problems with health insurance coverage.
Some participants wondered why health insurance premiums for expats are so much higher than in Switzerland. Others pointed out practical problems for Swiss citizens returning to Switzerland at retirement age.
There were also questions about apparent difficulties with having additional health insurance coverage or with finding specific information about insurance schemes in other countries.
In response to the questions, Olivier Peters of the Federal Health Office said Switzerland’s mandatory health insurance coverage was very good compared with other countries. He assured the delegates the government had to plans to change the existing system for the Swiss living abroad.
Anniversary marked
On Saturday, the Swiss Abroad community also celebrated the 25th anniversary of the Swiss expat square in Brunnen on Lake Lucerne.
Set up in 1991, the 5,400 square metre open park site opposite the Rütli meadow is meant to show the affiliation of the Swiss Abroad to their home country.
Swiss President Johann Schneider-Ammann opened a special exhibition of posters telling the lives of Swiss emigrants.
The board of the foundation in charge of the site also awarded Swiss-Australian illustrator and author Lucienne Fontannaz-Howard a one-month grant as artist in residence.
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Due to high prices and a strong franc, some Swiss abroad say they can no longer afford to come home to visit on holidays.
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