Swiss House of Representatives votes to end child pensions

Elisabeth Baume-Schneider speaks at the House of Representatives on Thursday. KEYSTONE/© KEYSTONE / ALESSANDRO DELLA VALLE

Old-age and survivors’ insurance (OASI) pension fund recipients should no longer receive a pension for their children. That is the view of the House of Representatives. On Thursday, it adopted a corresponding motion from its social affairs and health committee. A new model is to be introduced.

The decision in the House of Representatives was made by 117 votes to 62 with 8 abstentions. A minority from the Social Democratic Party and the Greens opposed the motion, as they did in the committee, but without success. It will now go to the Senate.

According to the text of the motion, the abolition of old-age child pensions in the Old Age and Survivors Insurance (OASI) and occupational pension schemes should be accompanied by a simultaneous increase in supplementary benefits for parents with maintenance obligations. In addition, survivors’ pensions – also known as orphans’ pensions – and children’s pensions in the event of disability and their continued payment at retirement age are not to be affected.

In the opinion of the majority, old-age children’s pensions that are already in payment should continue to be paid until the end of the eligibility period. However, transparency regarding payments and the prevention of possible abuse should be improved.

‘Targeted elimination of discrimination’

Andri Silberschmidt, spokesperson for the House of Representatives’ social affairs and health committee, which originated the motion, spoke of a “modernisation of the system”. The current old-age child pension favours parents who receive a full OASI pension, i.e. people without financial hardship. They should no longer receive a supplementary pension.  

On the other hand, the majority believes that the burden on low incomes should be reduced more than it is today. Specifically, the supplementary benefits for this group of people should be increased.

The proposal is intended as a “targeted elimination of discrimination”, according to the written justification. Changes are needed “with a view to economic sustainability and social justice for all generations”.

‘Ideology that has not been thought through’

Manuela Weichelt of the Green Party opposed the motion on behalf of a minority of the committee. “Four days after the clear yes to the 13th pension reform proposal comes the next attempt to reduce the OASI – at the expense of the younger generation.” She implied this is alien to the system and shameful.

“If we cancel child pensions, we are depriving young people of money for their education,” Weichelt continued. One in seven children is already affected by poverty. The proposal is nothing more than “an ill-conceived ideology at the expense of children”.

According to Weichelt, the number of women of retirement age with children in education is consistently increasing. If the motion is accepted, more people will be required to seek supplementary benefits. This would also mean additional administrative work for the cantons.

Federal Council rejects the idea several times

The cost of child pensions has risen sharply over the past twenty years and amounts to more than CHF230 million ($261 million) annually in the OASI alone. The abolition of child pensions is not a new issue but the proposal has so far failed in parliament.

Interior Minister Elisabeth Baume-Schneider pointed out that the Federal Council had also examined the abolition of child pensions several times in recent years. However, it always concluded that the abolition of child pensions was not justified, in particular because of the equal opportunities for children. In view of the coming pension reform, however, the issue will be re-examined.

The child’s pension is a supplement to the old-age pension for insured persons who have children up to the age of 18 or – if they are in education – 25. The child pension amounts to a maximum of 40% of their own old-age pension. Employed parents receive CHF200 to CHF300 per month per child. Pensioners receive a monthly child pension of CHF478 to CHF956.

Adapted from Germanby DeepL/kc/amva

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