Swiss pension reform: parliament approved

The National Council approved, by 101 votes against 91 with 4 abstentions, the proposals of the Conciliation Conference over the Retirement Provision 2020. Earlier, the Council of States had supported the project with 27 votes against 17. The dossier is now ready for final voting. Now the people will have to give its opinion on September 24th.

In his final address to the House on Thursday, Interior Minister Alain Berset on behalf of the government stressed the crucial importance of the reform for “Switzerland, the people, the economy and the stability of the institutions”.

The retirement age will be more flexible, women work up to 65 years. The conversion rate for the pension will be cut from 6.8 to 6%. The new pensioners will receive 70 francs more per month. The value added tax will rise by 0.6%.

Before coming into force, the population and the cantons will have to vote in his favor. If there will be not a double majority, the reform will fail. If favorable, the reform will enter into force from January 1, 2018.

Since that date, the retirement age for women will be gradually increased – four months per year until 2021 – to reach 65 years. The VAT will suffer a 0.3% increase in 2018 and 2021. The adjustment of the conversion rate from 6.8 to 6.0 is planned for 2019.