Swiss government outlines proposal to fund ‘13th month' pension rise
The Swiss government has outlined its plan to finance the 13th month pension payment initiative, which was approved by a majority of Swiss voters on March 3. It will be paid once a year and will be funded by a rise in employee contributions and, possibly, a rise in value-added tax (VAT), the Federal Council said on Wednesday. The 13th pension payment initiative, launched by Swiss trade unions, was accepted by over 58% of Swiss voters on March 3, 2024. It is due to come into force in 2026. It is estimated to cost CHF4.2 billion ($4.6 billion) that year. Five years later, this will rise to CHF5 billion, of which the federal government will pay around CHF1 billion. + Swiss vote: ‘yes’ to higher pensions, ‘no’ to retiring later Without additional measures, the old-age and survivors’ (OASI) state pension scheme, which currently has CHF48 billion in its coffers, will be in the red from 2037, the authorities say. The distribution result will be negative from 2026. In order to secure the ...