Swiss citizens have voted against increasing the basic state pension by 10 per cent, according to Expatica.
In a recent referendum held on Sunday, 59.4 per cent voted against the increase.
The 10 per cent rise was initially called for by the SGB, the Swiss Federation of Trade Unions as it was found that people on low to medium incomes are more reliant on a state pension.
The proposal was rejected by Switzerland’s pension fund association ASIP and the Federal Council and Swiss Parliament. The state pension fund faces “serious financial challenges” as the baby boomer generation approach their retirement, the Parliament and Council said on its website before the vote.
As a result, an increased basic state pension would add to this financial struggle.
Instead, the Federal Council is set to present amendments through reforms in its Pension Provision 2020 program which will ensure that both state and workplace pension schemes are funded at the current level.
Other changes will include the increasing of womens’ retirement age from 64 to 65, in line with their male counterparts.
In addition, the National Council, the main component of the Swiss federal government opposed the initiative by 139 votes to 53 with 1 abstention.
Switzerland’s other main parties, the Liberal Radical Party and the Swiss People’s Party both opposed the pension increase proposal pointing out that it would go to Switzerland’s rich and poor and put the extra burden on the young.
“The initiative was clearly, but not crushingly, defeated,” Swiss interior minister Alain Beset said.
“Many people are aware that the cabinet and parliament are working on a major reform of the pension system and a Yes would have threatened this project. I see the result as support for the path taken by the cabinet, which is working towards a balanced solution that can gain a majority.”
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