The original primary goal of the reform was to maintain the level of support offered by our pensions system. With support from the government, parliament reformulated this goal and – with a wafer-thin majority – pushed through a reform that expands old age pensions instead of restructuring it. Pensions 2020 has degenerated into an unfair, superficial reform that makes a mockery of the inter-generational contract.

The reform of the old age and disability pension is unfair, because it leads two a two-tier system. While new pensioners will get CHF70 ($73) more, those who are already receiving retirement benefits will have to pay increases in value-added taxes and will mostly have to get by on a lower occupational pension. The mandatory occupational benefits were only introduced in 1985, so many pensioners have only had time to save a small amount of capital, unlike those in the transitional generation – the 45- to 65-year-olds. At the same time, the transitional generation is protected from the lower conversion rates and receives an additional CHF70 in old age pension. This cannot be justified to today’s pensioners; they are picking up the tab for the unjust old age reform and will become second-class pensioners.

I am deeply convinced that everyone should be able to spend their retirement wherever they want, and would deny no one his well-earned pension! Expatriate Swiss are important ambassadors for our country and have made a great contribution to Switzerland’s prosperity. But I do criticise the problems caused by the additional CHF70 in pension. This means that future pensioners in Switzerland who receive extra payments will be disadvantaged, because this increase has to be taxed.

Read full Op-Ed by Petra Gössi in Swissinfo.ch