AVS: VAT vote on November 29 for the 13th pension payment

Context

TL;DR

• The vote on VAT for the AVS is set for November 29.
• The proposed increase would bring VAT to 8,5%.
• The 13th AVS pension costs 4-5 billion francs a year.
• From 2028, the additional revenue would be approximately 1,5 billion per year.

Key facts

• Supporters → PS, Centro, Verdi, PEV and USS
• Location of the announcement → Bern
• VAT increase → +0,4 percentage points, up to 8,5%
• First payment → December
• Next outlook → AVS 2030 reform

On November 29, funding for the 13th AVS pension will go to a vote. In Bern, a broad alliance made up of PS, Centro, Verdi, PEV and USS presented the arguments in favor of an increase in VAT. The news report, bearing the Keystone-ATS byline, presents a common position: without a solid funding solution, the entire AVS risks running into difficulty.

For the cross-border commuter reader, the scope of the news is clear: it concerns AVS and pension funding. The source does not mention Canton Ticino, a G permit, LPP, LAMal, rebates, withholding tax, INPS, Brogeda, the new 2026 tax agreement or double taxation. These topics therefore cannot be cited as consequences described by the vote. To follow only the pension-related aspect, one can consult rendita AVS.

The proposal on the table

The mechanism put forward by the alliance is an increase described as moderate: 0,4 percentage points in VAT, up to 8,5%. According to Samira Marti, co-president of the Socialist parliamentary group, adequately funding the 13th monthly payment through this measure would provide stability and security for pensions. The National Councillor from Basel-Landschaft also recalled that nine out of ten people receive more from the AVS than they pay in.

Centro, with its president Philipp Matthias Bregy, linked the vote to the AVS's financial sustainability. The 13th AVS pension entails additional annual costs of between 4 and 5 billion francs. The reserves, although still significant, are not unlimited. Moreover, the fund's assets are invested and generate returns that help finance the pensions: if the reserves fall, these returns also decline over the long term.

For this reason, Centro supports the compromise drawn up by parliament. From 2028, the measure should bring in about 1,5 billion francs more each year and slow the erosion of the reserves. Bregy ruled out, however, that the project could cover the funding needs on its own: in his assessment, further solutions will have to come with the AVS 2030 reform. The same alliance therefore presents a yes vote as a stabilization measure, not as the definitive financing of the AVS.

Operational details

What changes in the comparison

The practical point for those following the AVS from across the border is not to automatically attribute every issue related to working in Switzerland to the vote. The text makes it possible to separate the tax measure, the promised coverage and the AVS's financial outlook. These are three different levels, and the distinction prevents a political position from being turned into a rule that is already in force.

Three levels to keep separate

The first level concerns VAT. Marti argues that food and medicines, described as essential goods, would not be affected by the moderate increase. Hence his conclusion: low and middle incomes would be protected. This is the alliance's wording; it is not an individual calculation for those who work across the border.

Regarding the relationship between costs and benefits, Léonore Porchet estimated that a person with an average income would pay about 85 francs more in VAT each year and, once reaching retirement age, would receive an additional pension of about 2000 francs per year. The vice-president of the Greens acknowledged that the tax system is proportionally more advantageous for higher incomes than an increase in wage contributions, adding, however, that it entails significant compensation. For a cross-border worker, this indication should be read as a political example provided by the source, not as a personal calculation: income, pension situation or other individual conditions are not specified.

The third level concerns timing. According to the alliance, a yes vote would slow the erosion of the reserves; in Bregy's words, a no vote would put the AVS and its beneficiaries at risk. The source does not describe an automatic outcome of the vote, but it also reports Pierre-Yves Maillard's accusation: UDC and PLR would be pursuing a destabilization strategy to push the AVS into the red and impose a higher retirement age on everyone. It is a political claim, not a separate fact.

Marc Jost adds a fourth argument: pensioners would also contribute through VAT, strengthening solidarity between generations. According to the Bernese national councillor, another choice would leave the bill to the children and grandchildren. The tax calculator can serve only for a personal reading of the figures, not to attribute different amounts to the source.

Useful planning tools

To estimate your pension strategy, use the pension planner and the pillar 3 simulator.

Useful planning tools

To estimate your pension strategy, use the pension planner and the pillar 3 simulator.

Key points

How to follow the dossier

A four-step timeline

For a cross-border worker who wants to get their bearings without adding extraneous information, the most cautious procedure is to turn the source into a brief timeline. No assumptions about the outcome are needed: the dates and figures stated by the supporters are enough.

1. Set the first reference point: November 29 is the date of the vote. The subject is not a generic reform, but the proposal to increase VAT intended to finance the 13th AVS pension payment.

2. Separate the decision from the payment. The 13th pension payment, wanted by the people through the USS popular initiative accepted in March 2024, will be paid for the first time in December. The source therefore describes two distinct moments: the vote on the financing and the first disbursement.

3. Write the exact figure next to the measure: +0,4 percentage points, up to 8,5%. Then record the two financial figures cited: the additional annual cost between 4 and 5 billion and additional revenue of approximately 1,5 billion per year from 2028. Do not present the latter as full coverage, because Bregy states the contrary.

4. Close the note with the stated limitation. The Centre supports the compromise, but admits that other solutions will be needed with the AVS 2030 reform. Next to it, note that UDC and PLR oppose the increase according to the report, while PS, Centre, Greens, PEV and USS support a yes vote. The positions remain attributed to their respective representatives.

This sequence helps avoid confusing the date of the vote with that of the payment and the expected revenue with the overall funding requirement. The source does not provide forms, personal documents or administrative steps for the individual reader; adding them would mean going beyond the available facts. The same applies to any potential effects on withholding tax, a G permit, LAMal or other issues related to cross-border employment: they are not described in the original article.

For a personal check of your payslip and the figures concerning your own income, use the salary calculator.

Source: swissinfo.ch