Facts

The case concerns the regulations of public pension funds, according to which the departing insured person is only given a vested benefit payout if they cannot claim benefits due to unintentional non-reelection or dismissal. The Federal Court decided that such regulations are contrary to federal law.

The public pension funds do have the option to order that the vested benefit payout upon transfer to another fund excludes the entitlement to the benefits provided for in the event of unintentional non-reelection or dismissal (severance pay, pension). However, the provisions of the Pension Fund Act of the Canton of Zug (PKG) cannot be interpreted in such a way that benefits in the event of unintentional non-reelection or dismissal are forfeited in any case if the insured person transfers to another fund within the framework of the vested benefit agreement.

Considerations

The Federal Court states that the insured person has a priority entitlement to vested benefits under federal law over the benefits due to unintentional non-reelection or dismissal. Pension provisions that exclude…