Disability child's pension must be paid by the encompassing pension institution

Facts

This judgment is about the entitlement to a disability child's pension pursuant to Art. 25 BVG (Swiss Federal Act on Occupational Retirement, Survivors' and Disability Pension Plans) for a pension institution that covers both the mandatory and the supplementary sector (so-called "encompassing pension fund").

The appellant was entitled to a disability pension from the staff welfare foundation of company S. and also claimed an additional disability child's pension for her daughter. However, the foundation's regulations did not provide for disability child's pensions, as the disability pension exceeded the minimum amount under the BVG.

The appellant argued that the BVG mandatorily prescribes the benefits of the mandatory sector to the encompassing pension funds, regardless of whether the total benefits are higher. The respondent, on the other hand, took the view that a comparison of the total benefits with the minimum BVG benefits is permissible.

Considerations

The Federal Supreme Court decided that the regulation of the foundation's rules, according to which the entitlement to a disability child's pension is offset by the higher disability pension, is contrary to federal law.

The court explained that according to…