Subsequent purchases are intended to close contribution gaps in Pillar 3a. The National Council Commission goes further than proposed by the Federal Council.
According to the will of the National Council Commission, contribution gaps in Pillar 3a should be able to be compensated retrospectively through tax-deductible purchases. (Symbolic image) – dpa/AFP/Archive
In future, it will be possible to close contribution gaps in Pillar 3a through subsequent purchases. The responsible National Council Commission wants to go further than the Federal Council has proposed – and accept higher tax losses.
Last November, the state government sent a regulation amendment out for consultation. If no contributions or not the maximum permissible contributions were paid into Pillar 3a, the resulting contribution gaps should be able to be compensated retroactively for up to ten years through tax-deductible purchases. This should strengthen individual self-provision.
Unbureaucratic purchases every five years
The Social and Health Committee of the National Council (SGK-N) has now been consulted on the corresponding amendment to the ordinance, as the parliamentary services announced on Friday. It recommends that the Federal Council, by 16 votes to 9, adhere to the wording and justification of the motion passed by Parliament by Council of States member Erich Ettlin (Centre/OW) and align the rules for subsequent payments into Pillar 3a with those in the first and second pillars.
Specifically, the Commission believes that purchases of up to 35,280 francs in Pillar 3a should be possible every five years with as little red tape as possible. Pension gaps should be able to be closed retroactively from the age of 25, including for years without income subject to AHV contributions. The Federal Council does not want a retroactive rule.
According to tax statistics: Only ten percent use maximum deduction
The Commission has noted that its model leads to significantly higher, but not quantifiable, tax revenue losses than the Federal Council’s consultation proposal, the statement continued. The Federal Council assumes that its proposed implementation could reduce tax revenues by up to 600 million francs.
According to the 2019 direct federal tax statistics, around ten percent of taxpayers claim the maximum annual deduction for tax-privileged self-provision.
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