In March 2024 Swiss voters approved, by 58%, a plan to grant pensioners a 13th monthly payment. That set off a quarrel over how to fund it.
This week the National Council’s social-security committee backed a scheme to finance the extra benefit solely through a 0.7 percentage point rise in value-added tax, reported SRF. The decision broadly matches a draft prepared by the Federal Council, according to parliamentary services.
The upper house, the Council of States, had earlier argued for a mix of higher payroll contributions and VAT increases. Its proposal also linked a second VAT rise of 0.5 points to scrapping or loosening the ceiling on pensions for married couples
The lower-house committee prefers a temporary measure. It wants the VAT rise to expire in 2030, citing rosier financial projections for the pension fund than those used by the government. With a broader overhaul of old-age insurance looming, it says, only a stopgap is needed. By 20 votes to five it also rejected the government’s plan to trim the federal contribution to the fund.
In a tight overall vote, 13 to 12, the committee approved two draft bills to finance the 13th pension. The National Council will take up the matter in the autumn session.
More on this:
SRF article (in German)
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