The 2020 pension reform has been adjusted and was adopted by the Swiss Parliament in the final vote of 17 March 2017. The most controversial issue was the increase in value-added tax, which is now to be increased by 0.6% in two stages (0.3% as at 1.1.2018 and 0.3% as at 1.1.2021) in order to finance the AHV.

The Council of States and the National Council already approved the motion of the conciliation conference on the 2020 pension reform (reference number 14.008) in their meeting on 16 March 2017 (see our contribution of 16 March 2017).

The value-added tax is to be increased by 0.6% in two stages (0.3% as of 1.1.2018 in order to continue the IV supplementary financing in favour of the AHV and 0.3% as of 1.1.2021) in order to finance the AHV. In combination with the already decided increase of the VAT rate by 0.1% in favour of financing the expansion of the railway infrastructure (FABI), the standard VAT rate would continue to be 8.0% from 1.1.2018 (see our contribution of 23 February 2017 for the development of VAT rates from 1.1.2018) and will then be increased to 8.3% from 1.1.2021.

The 2020 pension reform is subject to a referendum which is expected to take place on 24 September 2017. Due to the necessary constitutional amendments, the reform is subject to a mandatory referendum.

All information, documents and media releases on pension provision 2020 and on the parliamentary debate are available here.