Swiss pension reform critics hand in referendum signatures

Signatures for a referendum on the recent occupational pension reform are handed in to the Federal Chancellery in Bern on June 27. © Keystone / Alessandro Della Valle

Left-wing parties and unions who oppose a recent occupational pension reform have submitted around 140,000 referendum signatures to force a new vote on the issue.

They disagree with proposed reforms, approved by parliament this spring, which they claim will lead to pension cuts of up to CHF3,240 ($3,542) per year.

The number of signatures handed in is well above the 50,000 needed and shows “people are fed up with the dismantling of pensions”, said Swiss Trade Union Federation President Pierre-Yves Maillard in a press release on Tuesday.

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Occupational pensions, set up by employers, have been under pressure due to rising life expectancy and low interest rates.

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.

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At the centre of the recent reforms 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 pot would be lost at a stroke.

The planned reform is simply a cost-cutting exercise and will lead to cuts in pensions, say critics, who include the Social Democratic Party and the Green Party, and the Swiss consumer magazines Bon à savoir and K-Tipp.

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Last September voters also came out in favour of raising the retirement age for women as part of an amendment of the state pension scheme. 

But the opponents warn that women in particular will suffer from pension cuts resulting from the parliament-backed reform. They argue that the reform only benefits the financial sector.

Swiss voters look likely to decide on the issue next year.