The Swiss parliament has approved a partial funding solution for a newly approved 13th annual state pension payment. Following debate, the National Council agreed to a 0.4 percentage point increase in value-added tax (VAT) to help finance the additional pension benefit. However, lawmakers rejected proposals to increase payroll contributions, resulting in a significant funding gap for the program. This decision leaves a portion of the costs associated with the 13th pension payment uncovered. The partial funding plan follows extensive discussion regarding the sustainability and financing of the expanded pension system. The outcome raises questions about how the remaining costs will be addressed and the long-term financial health of the state pension. Further adjustments may be necessary to fully fund the benefit.
