On September 22, Swiss citizens will go to the polls to decide on the latest round of national referendums. Here’s all you need to know about the two votes, and how they will impact expats and internationals in Switzerland.

Swiss referendum guide: September 2024

After the votes in March and June, September will be the third opportunity for the public to decide on issues concerning the whole of Switzerland. This time around, the Swiss government has chosen to put two separate initiatives up for a vote.

One is a “popular initiative”, meaning it earned enough public signatures to be voted on, while the other is a government-proposed amendment to an existing federal law. With this in mind, here’s what you need to know about the proposed reform to Swiss pensions and the Biodiversity Initiative.

Occupational Pension Reform in Switzerland

The first vote concerns an amendment to the Federal Act on Occupational Retirement, Survivors' and Disability Pensions, more colloquially known as the “Occupational Pension Reform”. The proposal would see major changes made to the second-pillar pension scheme in Switzerland or BVG.

Why are Swiss second pillar pensions (BVG) being reformed?

The BVG is typically the main source of income for retirees in the alpine nation, alongside mandatory pillar one (AHV / OASI) and optional pillar three (private) plans. The amount paid out in the second pillar is based on how much a person earned as a salary during their working life, with the system being paid into by both employers and employees.

Once the retirement age is reached, retirees are entitled to a portion of the money that they paid into the system. While this varies by provider, the minimum amount paid is set at 6,8 percent of the pension pot every year - this is called the minimum conversion rate.

However, the government argues that BVG pension funds are “no longer adequately financed” because of low-interest returns, higher life expectancy and the increasing number of retired workers. Therefore, they have proposed a series of measures designed to return second-pillar plans to financial health.

How would the September referendum modify pensions in Switzerland?

First, the reform will change how much has to be paid into the BVG system based on age. Currently, workers are divided into age groups, with contributions set from 7 percent of annual earnings for the youngest staff and up to 18 percent for the oldest employees. With the change, this system will be streamlined into two groups, with 25 to 44-year-olds contributing 9 percent of their annual earnings, while those between 45 and 65 years old will pay 14 percent. 

In addition, the income threshold after which employees and employers must pay into the BVG will be lowered from 22.050 francs a year to 19.845 francs. The share of wages insured through the second pillar will go from a fixed amount to 80 percent of all salaries. 

Finally, the reform would reduce the minimum conversion rate from 6,8 percent to 6 percent. To compensate the generation whose pensions will be cut most by the change, a special supplement will be given to those retiring within 15 years of the reform passing with pension assets of less than 441.000 francs. This assistance will be up to 200 francs a month.

Arguments for and against BVG pension reform

The Federal Council argued that the reform will help secure the financing of the BVG long into the future. While the change will mean lower pensions for middle and higher earners, the lowering of the income threshold and the expansion of insurance coverage will see lower earners - the government highlighted women and part-time workers specifically - receive a more secure pension.

In response, the referendum committee against the reform, headed by the Swiss Federation of Trade Unions, warned that the change could cut some pensions by up to 3.200 francs a year. They argued that as people face a continued rise in the cost of living, the government is asking workers to pay more and receive less. “Today, banks, brokers, managers and experts siphon off over 7 billion from our pension funds every year. The BVG rip-off does not change that,” they argued.

Biodiversity Initiative in Switzerland

The second vote on the ballot concerns the "For the future of our nature and landscape" or Biodiversity Initiative, a popular referendum that was submitted back in 2020. Proposed by a selection of Swiss political parties and climate and heritage groups, the vote seeks to enshrine protections for Swiss wildlife, natural habitats and human heritage sites.

How would the Biodiversity Initiative impact life in Switzerland?

If approved, the vote would amend the federal constitution, requiring both the federal government and Swiss cantons to do everything in their power to preserve “the landscapes, townscapes, historical sites and natural and cultural heritage that are worthy of protection.” This would involve creating objects of national and cantonal importance, where authorities would only be able to infringe on protections if it was in the “overriding interests” of the country to do so.

Authorities would also be required to protect nature outside of protected areas, and make sure that all the resources possible be used to “safeguard and strengthen biodiversity.” Initiators hope to designate 30 percent of Switzerland as protected land.

Views for and against the Swiss biodiversity vote

The referendum committee argued that a third of animal and plant species in Switzerland are endangered or already extinct and that half of habitats are threatened, making the point that landscapes both human and natural need to be protected from “concrete construction, urban sprawl and intensive land use.”

They warned that if nothing is done now, protecting the environment is expected to cost Switzerland 14 to 16 billion francs a year from 2050. “The initiative obliges the federal government and the cantons to finally protect our livelihoods,” the committee concluded.

Both the Federal Council and Parliament have rejected the initiative on the grounds that is too extreme. The committee against the plan argued that it would increase the cost of building as the country continues to face a severe housing shortage, and would make the country more reliant on energy, food and resources from abroad.

They added that the plan would likely cost millions of francs to implement and that there are already “sufficient instruments and legal provisions to promote biodiversity.” “Yes to biodiversity. No to the extreme biodiversity initiative,” they concluded.

Final round of Swiss national referendums coming in November

Following the votes on September 22, the fourth and final round of national referendums in Switzerland in 2024 will be held on November 24. Then, four more votes will be held concerning tenancy law, health insurance and the expansion of the motorways. Stay tuned to IamExpat for more updates and guides on referendums and other votes in Switzerland.