LIECHTENSTEIN - Liechtenstein's civil service pension scheme will no longer receive top-up payments out of the state budget, under new proposals.
The suggestion was made by Otmar Hasler, head of the Liechtenstein government.
A year ago the government had to ask parliament for another CHF3.6m (€2.3m) to put into the fund, taking contributions to over CHF10.6m for the last three years.
Hasler has now proposed the creation of a bill under which employees and employers will contribute more to the fund in times of increased financial requirements. In return, plans to change it from defined benefit to defined contribution will be dropped.
The model proposed would see the contribution of both the employers and employees sink from 7.5% to 7% when the pension scheme is well funded. If, however, more money is needed, two thirds of the additional costs are to be paid for by the employers and one third by the employees.
The rise in contributions is capped at a joint percentage of 19.5%. If this is not enough to fund the scheme, then benefits under the scheme would have to be reduced, the government said.
Under the proposed bill the foundation in charge of the pension scheme with get more autonomy with the state merely having supervisory charges.