On 3 March 2024, Swiss voters approved the initiative for a 13th OASI pension payment.
In brief
Current situation
Old-Age and Survivors’ Insurance (OASI) is the foundation of the Swiss pension system. More than 2.5 million pensioners currently receive an OASI pension, which is intended to provide adequate cover for basic needs in old age. Most pensioners have other income, most commonly a pension from an occupational pension scheme. Anyone who is unable to cover their living expenses can claim supplementary benefits.
The initiative
The initiative aims to increase OASI retirement pensions by one month’s worth. A 13th pension payment would be added to the 12 monthly pension payments each year. (Another initiative, the “Pensions Initiative”, is about raising the retirement age. You can read about that here.) The initiative also stipulates that supplementary benefits could not be reduced because of the 13th pension payment. The maximum annual retirement pension would be increased by CHF 2,450 to CHF 31,850 for individuals, and by CHF 3,675 to CHF 47,775 for married couples. If introduced, the 13th OASI pension payment would probably cost around CHF 4.1 billion; the federal government would have to pay around CHF 800 million of this sum. After that, costs would continue to rise rapidly. The initiative leaves the question of funding open. Thanks to various reforms, OASI benefits are currently well funded; however, deficits are expected after 2030 – even without a 13th OASI pension payment. If a 13th pension payment was introduced, OASI would need additional income or it would have to cut benefits.
Last modification 03.03.2024
