The initiative will come into force in 2026. It will cost around CHF4.2 billion ($4.7 billion) a year. Value-added tax (VAT) is to be increased by 0.7 percentage points in Switzerland to finance the 13th monthly pension payment.
The additional money will be paid to everyone entitled to an old-age state pension. The supplement will have no impact on the amount of monthly old-age pensions, and will not be taken into account in the calculation of income qualifying for supplementary benefits.
The House of Representatives will not take a position on the financing of this pension. The preparatory commission considered that the fund’s financial situation did not require an immediate source of financing, and that parliament should take its time to analyse the situation.
Translated from German by DeepL/sb
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