Update on Swiss Pension Reform 2023

Swiss Pension Reform 2023On June 27, 2023, a referendum against the newly passed Swiss pension reform was successful. Over 77,000 signatures were submitted, which means the Swiss population will vote on the pension reform at the ballot box in March 2024.

For now, 2023’s Swiss pension reform legislation stands. It is designed to make occupational pension provisions fit for the future and was passed by the Swiss parliament on March 17, 2023.

The main points of the reform passed in 2023 are the following:

  • The conversion rate used to calculate pension benefits shall be reduced from 6.80% to 6.00% to adjust to increased life expectancy and the expected investment returns.
  • The current fixed coordination deduction of CHF 25,725 shall be replaced by a 20% coordinated deduction in annual salary.
  • Current entry thresholds shall be reduced from CHF 22,050 to CHF 19,845 so lower-salaried employees can also be insured.
  • Change of old-age credits from current age 25-34:7%; 35-44: 10%; 45-54: 15% and 55-65: 18% to 25-44: 9% and 45-65: 14% of the insured salary
  • Compensations for a transitional generation of 15 years ranging from CHF 1,200 to CHF 2,400 per year, depending on the cohort and the height of the pension assets at retirement, shall be implemented.

This information is provided by WHP, Asinta’s employee benefits consulting Partner in Switzerland. If you need support with your benefits in the country, please get in touch with Asinta, and we will put you in touch with the local experts at WHP.