Swiss voters have chosen not to increase the country's basic state pension by 10%. In a referendum Sunday, 59.4% voted against the increase in the state pension.
The Swiss Federation of Trade Unions, the SGB, called for the 10% increase because people on low to medium incomes are more reliant on a state pension. On its website, the SGB cited falling values of annuities as one reason for the increase.
The initiative was opposed by Switzerland's pension fund association, ASIP, and the Federal Council and Parliament of the country. On its website, and prior to the vote, the Federal Council and Parliament said the state pension fund faces “serious financial challenges,” as the baby boomer generation are coming up to retirement age. Increasing the basic state pension would exacerbate the problem, it said.
The Federal Council is proposing changes through reforms in its Pension Provision 2020 program, which covers both state and workplace pension funds, to ensure that retirement plans can continue to be funded at the current level. Reforms include increasing the retirement age for women to 65 from 64, bringing it in line with the retirement age for men.