Social insurance system debate to start

The country's ageing population has prompted a review of the national pension system Keystone Archive

The Swiss parliament is set to debate changes to Switzerland's compulsory social insurance system.

This content was published on April 15, 2002 - 14:17

Changes to the so-called "second pillar" of Switzerland's pension system are designed to cope with increased life expectancy and the growing number of part-time workers.

The Swiss second pillar scheme guarantees that individuals receive an annual income worth at least 60 percent of their final salary upon retirement.

The scheme also forms the second of a three-pillar social security system, sitting above the country's basic pension scheme (AHV). People can also make voluntary contributions to so-called "third pillar" private retirement funds.

Changes to Switzerland's demographic make-up - chiefly an ageing population - have prompted a re-evaluation of many details within the system.

Because retirees are living longer, more funds are needed to provide an adequate standard of living.


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