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disagreement over funding the 13th ahv pension complicates future reforms

The 13th AHV pension will require an additional CHF 4.2 billion annually starting in 2026. Social Affairs Minister Elisabeth Baume-Schneider proposed a mixed funding solution involving increased wage contributions and VAT, but faced opposition from conservative parties, leading to a pure VAT increase being adopted. The final decision remains uncertain as a center-left alliance may revive the mixed variant in the Council of States.
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