Repeal of a Cantonal Provision on the Insurance of Teaching Staff at Municipal Schools with the Cantonal Pension Fund

Facts

The municipality of Zug and a teacher at a municipal school have filed a complaint against § 1 para. 1 lit. b of the Act of 31 August 2006 on the Zug Pension Fund. This provision stipulates that the teaching staff of municipal schools are insured with the pension institution of the Canton.

The Canton of Zug argued that the complaint could not be considered, as this was a provision that had already been included in the previous Act and therefore there was no new subject of appeal. Furthermore, the complaint was filed too late.

The Federal Supreme Court considered the complaint and repealed § 1 para. 1 lit. b of the Act on the Zug Pension Fund, as this provision violates the principle of the derogatory force of federal law.

Considerations

The Federal Supreme Court stated that federal law grants municipalities as employers the authority under Art. 11 BVG to establish their own pension institution for the implementation of occupational pensions for their personnel or to join a registered pension institution. The Cantons may not interfere with this competence by prescribing that municipalities must join a specific pension institution.

The contested provision of the Act on the Zug Pension Fund, which includes the teaching staff…