It is hard to understand the decision by the Swiss Parliament lower chamber to cut into the additional benefits that are paid to low-income retirees on top of their regular pension.
500 millions less, even though the Federal Council was not asking for so much. Given the healthy situation of Swiss public finances, these savings won’t change much for the public purse. They however change everything for the people affected.
It is true that the amount of these additional benefits is increasing fast. That’s to be expected as population is aging and the amount of the standard benefit remains low.
Let’s remember that the people against a monthly 70 franc increase in benefit that had been put forward in the pension reform proposal a few months ago pointed to the additional benefits as a better tool to support low income retirees. Some actions speak much louder than words.
