This will be the fourth attempt in two decades to reform the state pension system because of a structural deficit
Keystone
The Swiss government on Friday fixed the outlines of a new state pension reform plan, including raising VAT to fund it, and raising the retirement age for women from 64 to 65.
The proposed reform is to be financed by an increase in VAT of up to 1.7%. Home Affairs Minister Alain Berset, who oversees social security and pension issues, is to submit a detailed proposal for consultation by lawmakers before the summer break.
This comes after a previous pension reform plan presented by Berset was rejected by voters in September 2017. It will be the fourth attempt over the past two decades to amend legislation to remove a structural deficit in the state pension scheme.
Under the latest proposal, the retirement age for women would be raised gradually, by three months each year after the reform comes into force. It would make the retirement age the same for both women and men.
Three options are on the table to provide compensation to people affected, funded by VAT receipts or employee social insurance contributions or a combination of the two.
The government says everyone should be able to choose flexible retirement between 62 and 70. People will nevertheless be encouraged to keep working beyond 65.
Popular Stories
More
Demographics
Flat-hunting in Switzerland’s cheapest and most expensive municipalities
Train vs plane: would you take a direct train between London and Geneva?
Eurostar is planning to run direct trains from Britain to Germany and Switzerland from the early 2030s. Would you favour the train over the plane? If not, why not?
This content was published on
Temperatures in Switzerland have risen at a faster pace in the last 50 years, with heatwaves warming significantly more than the average temperature.
Alpine solar power project abandoned after opposition
This content was published on
Swiss energy provider BKW Group abandons planned photovoltaic energy plant, partly due to opposition from environmentalists.
Jewish communities federation praises Swiss foreign minister Cassis
This content was published on
Swiss Federation of Jewish Communities president praises embattled foreign minister Ignazio Cassis as doing "a very good job".
This content was published on
A combination of several factors led to the rejection of a major reform of the old age pension scheme at the ballot box last September.
Switzerland drops in international pension ranking
This content was published on
The Swiss pension system has ranked eighth in an annual international study looking at the sustainability and efficiency of retirement schemes
‘Now what?’ say Swiss papers after pension reform vote
This content was published on
A blow for Swiss Interior Minister Alain Berset, voters’ rejection of the government’s proposed pension reform leaves a lot of open questions.
You can find an overview of ongoing debates with our journalists here . Please join us!
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.