A motion in Switzerland’s lower house would limit the 13th annual pension payment to retirees with a primary residence in the country, effectively excluding certain groups from the supplemental December disbursement.
The proposal, authored by National Councillor Didier Calame of the Swiss People’s Party, argues that the extra payment should target individuals exposed to Swiss price levels. Recipients abroad typically face lower living costs, reducing the benefit’s intended purpose, Calame wrote. With public finances strained by demographic pressures, he added, funds should prioritize those enduring high Swiss costs for housing, healthcare and daily expenses.
The motion estimates substantial savings, though official data suggests the potential is modest. Federal statistics show roughly one-seventh of total pension outflows go abroad, partly because foreign-based recipients generally have shorter contribution periods and lower average pensions. The average monthly payment for retirees overseas is 702 Swiss francs, compared with 1,969 francs for those residing in Switzerland.
Legal obstacles may derail the initiative. Current law mandates global payments to Swiss nationals and requires payouts to eligible foreigners under domestic or international agreements, including the EU free-movement accord and bilateral social security treaties. The Federal Council has already signaled opposition, citing these obligations.
The lower house will review the motion next, followed by the upper chamber if approved. Only if both chambers consent must the government draft legislation. The proposal arrives as voters prepare to decide on a separate financing measure: a November 29 referendum on raising the standard value-added tax rate to 8.5% from 8.1% to fund the 13th pension. The reduced rate for essential goods would remain at 2.6%, while the hospitality sector’s rate would rise to 4.0%. The higher rates are slated to take effect in 2028 if approved.
Lawmakers previously debated whether foreign-based pensioners contribute to the VAT increase funding the 13th payment, noting they do not pay Swiss VAT. The parliament did not pursue the issue further during deliberations on the financing package.
