The proposal provides for an increase in VAT rates for the benefit of disability insurance (IV) for a period of seven years (2011–2017). As the additional funding requires a constitutional amendment, it must be approved by a majority of the people and the cantons.

Disability insurance (IV) is an important social institution, as it supports people who are no longer able to earn a living due to health reasons. Its expenses have grown significantly in recent years and have not been covered by its income since 1993. As a result, IV is now CHF 13 billion in debt. Due to the deficits, this debt increases by CHF 1.4 billion every year.

The IV's existence is therefore under threat. Its annual deficit must therefore be brought to an end immediately and the spiral of debt stopped. This requires additional revenue; the bill therefore provides for an increase in VAT rates from January 1, 2011, to December 31, 2017 (additional financing).

The Federal Council and Parliament are implementing a three-part plan to restructure the IV: in the first step, the 5th IV revision, the annual deficit was stabilized. The second step, additional financing, is intended to temporarily eliminate the deficit. During this time, a third step will see the introduction of new socially acceptable restructuring measures with the aim of balancing the IV's accounts in the long term.

The IV deficit is covered by the Old Age and Survivors' Insurance (AHV). To support the IV, the AHV draws CHF 1.4 billion annually from its assets. This continuously reduces the liquid funds that the AHV needs to pay its pensions. If additional funding is approved, the two insurance schemes will be financially separated, which will help to secure AHV pensions.

The proposal was accepted by the people and the cantons.

Voter turnout: 41.0%
Yes votes: 54.6%