The social security and health committee of the Council of States (SGK-S), in the upper house of the Swiss parliament, has reopened discussions on how to finance the thirteen month of pension - 13. AHV-Rente - that will be paid once a year from December 2026. 

MPs in the committee concluded that the parliament should take time to conduct a “serious and documented analysis” of different financing options, they said in a statement.

The view of the parliamentary committee contrasts with the decision taken by the government in October to finance the thirteen month of pension by increasing VAT by 0.7 percentage points, a step that would keep income and expenses of the AHV compensation fund in balance until 2030, according to the cabinet. 

The SGK-S has approved in its latest meeting the possibility of an amendment to the constitution necessary to lift the VAT, as proposed by the cabinet, but wants to see more detailed figures on the development of generated revenues, it said. 

It is backing a mix of funding options to payout a thirteen month of pension, passed in a referendum in March.

The thirteen month of pension will cost almost CHF4.2bn (€4.5bn) when the payout starts in 2026, and the financial situation of the AHV, the largest of the three compensation funds under management of Compenswiss is likely to worsen significantly from 2029 without a new source of financing, the committee added in the statement.

The committee also believes that the Parliament should take into account the next comprehensive reform of the first pillar AHV, expected by 2026 at the latest, when reviewing ways to fund the 13. AHV-Rente.

A referendum must be held on the VAT increase and, in order for the increase to take place in January 2026, the parliament must end discussions on the proposal by March 2025.

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