The Philanthropic Repair Shop for Swiss State Handouts

Swiss voters possess a remarkable talent for passing broad welfare expansions while blithely ignoring the logistical absurdities that follow. Following the March 2024 vote that introduced an additional 13th pension payment starting this December, every retiree in the country will receive extra money from the state—irrespective of whether their balance sheet requires it. The predictable result is a multi-billion-franc handout that treats needy pensioners and affluent millionaires identically, leaving private initiative to clean up the state's blunt redistributive logic.

Step forward Fondation Chance 13, a recently registered organization created specifically to mitigate this windfall. Established by Lucerne entrepreneur Jörg Odermatt and banker Karl Reichmuth, the foundation encourages well-to-do retirees to voluntarily surrender their extra cheque. The founders have personally committed 150,000 Swiss francs each in seed capital and project annual donation revenues of one to two million francs in the early phase. Odermatt estimates that roughly 25 percent of all seniors could easily manage without the additional payment.

The collected capital is earmarked for targeted distribution. Rather than retaining the funds, the foundation will direct them to charity partners, starting with Pro Senectute and Pro Juventute. The former will use the capital to establish an emergency fund providing unbureaucratic relief for impoverished seniors, while the latter will channel resources into educational and youth projects. The founders argue that consolidating these gifts allows for far more targeted impact than uncoordinated direct donations.

The timing of this private intervention highlights a glaring fiscal void. The total cost of the 13th pension payment starts at over four billion francs. On November 29, citizens will vote on a financing proposal involving a 0.4 percentage point increase in value-added tax, which excludes everyday necessities such as food and medicine. However, because this tax hike cannot take effect before early 2028, the initial payouts for 2026 and 2027 remain completely unfinanced by any additional revenue stream.

In typical Swiss fashion, public policy creates an expensive entitlement for everyone, while private philanthropy steps in to persuade the wealthy to give back what they never needed. The state taxes consumption down the road to fund unconditional checks today, leaving private citizens to construct the moral safety net that the ballot box neglected to build.

Written by Thorben Thiede thorben.thiede@alpineweekly.com