Will Swiss voters increase retirement payments?

On September 25, the Swiss will vote on a people’s initiative calling for a 10% increase in payments from the state retirement fund. Can the system support an additional CHF4 billion ($4 billion) annually? Opinions differ. Supporters of the initiative, including the Trade Unions Federation (which introduced it) and leftwing political parties, see it as a solution in the fight against the ‘pension massacre’. Opponents from employers’ organisations and the rightwing and centrist parties call it “a foolish campaign with devastating consequences”. The initiative calls for a 10% increase in state old-age pension benefits provided to all retirees through the so-called ‘first pillar’ in a three-pillar retirement system. This increase is foreseen to counteract the decrease in occupational pension payments from the second pillar, which has partially resulted from lower or even negative interest paid on occupational pension fund investments.  The Swiss Constitution stipulates ...