The Swiss voted themselves a 13th pension payment

… perhaps the Swiss government and the JCs overdid their ‘preaching water while drinking wine’ routine. This is about the public pension pillar, not the privately funded part. Oh yes, those behind the initiative didn’t bother to specify how the hike should be funded:

ZURICH, March 3 (Reuters) - Switzerland voted decisively to increase pension payments for the elderly in a referendum on Sunday, as concern over living costs and support for a stronger social safety net trumped questions about how to afford it. Provisional official results published by the government showed over 58% of voters backed the extra pension, a 13th monthly payment per year, with less than 42% against, a more emphatic victory than final polls had suggested. …

The pension vote contrasts with referenda in recent decades in which Switzerland clearly rejected proposals that would have shortened the working week and given people more holidays. … Switzerland’s minimum old age and survivors (AHV) pension is 1,225 Swiss francs ($1,393) a month, and the maximum 2,450 francs. For couples it is capped at 3,675 francs.

[The] Swiss also voted on an initiative to raise the statutory retirement age, which was comfortably defeated.

https://www.reuters.com/world/europe/swiss-vote-back-13th-month-pension-payment-increase-2024-03-03

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Does the Swiss pension system include cost of living adjustments? If yes, this is an additional payment. If no, it is probably needed.

Voters can always be counted on to vote for more income (and lower taxes).

Do the Swiss have a balanced budget requirement? If yes, that explains higher taxes or program cuts expected. If funded.

Inflation is everywhere. Especially in Europe due to loss of Russian natural gas. EU seems to like balanced budgets and abhors deficit spending. The Swiss report is not a surprise.

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The public part (which was the scope of the vote) does rise with cost of living. So the Swiss voted for a hike ‚on top‘ for all retirees including many who do not need it (arguably some do).

Sentiment was somewhat that ‚pols waste tax money for less important things‘ and ‘everyone else got a handout during the pandemic‘ so ‚let’s do something more sensible with the money‘ - perhaps a hint of socialism (in Switzerland!), from the same voters who rejected more holidays only a few years back.

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