The “unfair financing” deal currently negotiated by the Basel-Landschaft (BLPK) pension fund in Switzerland has led a majority of municipalities to consider dumping the scheme, according to Mike Keller, mayor of the Binningen municipality.
The electorate in the canton of Basel-Landschaft recently voted in favour of a plan to fully finance the ailing public pension fund.
But Keller – who has launched a campaign on the issue – said several municipalities that were currently members of the fund thought the deal was unfair.
“Those municipalities with a higher share of pensioners will have to pay more than those with a larger number of active employees,” he said.
He also criticised the recommendation to offer varying services and benefit levels at the BLPK in future.
“The pressure to save money will mean many municipalities will go for the cheapest option," he said.
Keller said he therefore launched an initiative to round up other municipalities and look collectively for a new pension fund.
He said 46 out of 86 municipalities had already joined him, but acknowledged that not all were convinced a different provider would be able to offer a cheaper deal.
The tender is to be put out “in early 2014” and, depending on the offers, the municipalities will then either leave the BLPK or stay on.
The mayor added that municipalities were, in principle, free to choose another pension fund provider.
But he pointed out that, when leaving the BLPK, they would have to cover any funding deficits they might have in their share of the portfolio themselves.