Guide for Expats on the Swiss National Referendums in March 2024

March 3, 2024, is an important date for Switzerland as citizens will cast their votes in two national referendums. This follows the recent federal elections in October and the Federal Council vote in December. Here’s a breakdown of what you need to know about the Pension Initiative and the Initiative for a 13th AHV pension.

Swiss Referendum Guide for March 3, 2024

Swiss citizens are heading to the polls on March 3, 2024, marking the first time since June 2023. This is also the first round of voting since the new parliament, Federal Council, and President of Switzerland took office in December. Both referendums are initiatives proposed by the public, and here’s a simple overview:

Voting on a 13th AHV Pension

The first referendum focuses on the Initiative for a 13th AHV pension, also known as the “For a better life in old age” initiative. This proposal suggests providing retirees in Switzerland with a 13th month of pension payment, similar to bonuses given in some employment contracts at the end of the year.

Currently, pension payments under the Old-Age and Survivor’s Insurance (OASI) range from 1,225 to 2,450 francs per month for individuals and up to 3,675 francs for married individuals. The additional 13th month of pension aims to increase the financial support for retirees. The estimated cost is 4.1 billion francs per year, with the government responsible for figuring out the financing.

Arguments for and Against

Supporters argue that with the rising cost of living, current pension schemes are insufficient. They point out that recent OASI reforms have made the change financially feasible. Opponents, including most political parties and the Federal Council, fear the long-term impact on the pension system. The Federal Social Insurance Office predicts a deficit by 2031, even without the 13th month of pension, making opponents wary of the financial burden.

Raising the Retirement Age… Again

The second referendum, the Pension Initiative, aims to raise the retirement age for all to 66 by 2033, tying it to Swiss life expectancy. This comes over a year after citizens voted to equalize the retirement age for men and women at 65.

Arguments For and Against

Supporters, like The Young FDP, argue that higher life expectancy and a shrinking birth rate strain the pension system. They believe tying the retirement age to life expectancy is necessary for financial sustainability. Opponents, including the Federal Council, caution against such rigidity, suggesting ongoing political discussions about retirement age adjustments in a direct democracy.

Upcoming Referendums

After the March 3 referendums, the next round of Swiss national votes is scheduled for May 18, 2024.