The Council of States has unanimously approved the introduction of a 13th AHV pension in Switzerland's pension system. This decision aligns with the earlier approval from the electorate and reflects a strong consensus among lawmakers.
The new pension aims to address concerns over the adequacy of existing pension benefits for retirees. However, the specifics of how this pension will be financed are still unresolved, with discussions on funding mechanisms postponed until next year. The financing of this initiative poses a complex challenge that will require careful consideration.
The Council of States has agreed to proposals that include reducing the federal contribution to the AHV and increasing the value-added tax (VAT) by 0.7 percentage points. The SGK-S has requested a comprehensive examination of various financing options and a thorough review of the implications of abolishing the pension cap for married couples.
The National Council will play a critical role in shaping the implementation of the 13th AHV pension, and the legislative process will require careful navigation. The first quarter of 2025 is expected to be a pivotal period for this initiative, as discussions will continue to refine the financing strategies and address the broader implications for the Swiss pension system.
The successful implementation of the 13th AHV pension could set a precedent for similar initiatives in other countries facing aging populations and pension sustainability challenges.