However, voters are likely to have the final say on the issue as political parties on the left, possibly backed by the main farmer’s organisation, have announced they will challenge the reform via a referendum.
The legal amendment approved by parliament is intended to secure the level of the occupational pension, strengthen financing and improve the protection of part-time employees, notably women.
At the centre of the reform is a reduction in pensions, which will be balanced by various compensatory measures. The minimum conversion rate at which saved capital is converted into a pension is to be reduced from 6.8% to 6%. This would mean that 12% of the pension would be lost at a stroke.
Pressure
Occupational pensions, set up by employers, have been under pressure due to rising life expectancy and low interest rates.
It took both chambers of parliament over 90 hours of discussions to agree a final comprise.
Interior Minister Alain Berset told parliament this week that a reform of the system is necessary even if the issue will most likely go to a nationwide vote.
What factors should be taken into account when inheriting Swiss citizenship abroad?
Should there be a limit to the passing on of Swiss citizenship? Or is the current practice too strict and it should still be possible to register after the age of 25?
Swiss committee wants to end government resignations during legislative term
This content was published on
Members of the Federal Council should no longer be able to leave office before the end of their term, according to a House of Representatives committee.
Swiss government seat: Ritter and Pfister nominated to succeed Amherd
This content was published on
Markus Ritter from St Gallen and Martin Pfister from Zug were officially nominated by the Centre Party on Friday to succeed Defence Minister Viola Amherd.
Top Swiss court rejects Russian request for administrative tax assistance
This content was published on
There is currently no reason to transmit banking information to the Russian Federation, the Swiss Federal Court has ruled.
After strike by radiologists, doctors demonstrate in Bern
This content was published on
Following a strike by radiology technicians in Fribourg, doctors, vets, dentists and chiropractors expressed their frustration on Friday outside parliament in the Swiss capital.
Eurovision and bleak world situation are top themes at Basel carnival
This content was published on
The Eurovision Song Contest and the gloomy global situation are among the main themes of Basel Fasnacht (carnival) this year.
Prices of Swiss investment properties continue to rise despite stagnating rents
This content was published on
Although rents in Switzerland stagnated or fell in the final quarter of last year, prices for investment properties continued to rise. Both apartment buildings and office properties have become more expensive.
Probe into wrong Swiss pension figures clears federal office
This content was published on
Employees of the Swiss Federal Social Insurance Office (FSIO) did not breach their duty of care when calculating pension prospects, an investigation has concluded.
This content was published on
Hotels in the southern Swiss canton of Ticino welcomed significantly more guests last December than in the same month of the previous year.
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.
Read more
More
Thousands of retired Swiss seniors falling into poverty
This content was published on
While most senior citizens in Switzerland can comfortably make ends meet, one in five is living either below or close to the poverty line.
You can find an overview of ongoing debates with our journalists here . Please join us!
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.