The 0.7 percentage points were calculated by the interior ministry and the finance ministry on the basis of the validated financial outlook for the old-age pension system. The new financial outlook for the first pillar of old-age provision will not be published until Monday.
In August the government decided to finance the increase in pensions solely through VAT and to forgo additional contributions from employers and employees. The aim is to keep the pension compensation fund in balance until 2030.
According to the government’s proposal, the 13th old-age pension payment will be introduced in 2026 and will cost around CHF4.2 billion ($5 billion) in the first year and just under CHF5 billion in 2030. The government writes that the financial situation of the pension system and the federal budget requires immediate measures to finance this additional expenditure.
Not only consumers, but also the federal government should contribute to the costs of the 13th payment. The government does want to reduce the federal share of pension expenditure, but to a lesser extent than planned. As a result, the government would contribute around CHF450 million per year to the 13th pension payment from 2026.
Translated from German by DeepL/ts
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