Retroactive Pension Reduction Without Prior Notice Procedure Permissible

Facts

By order dated October 10, 2003, the IV-Stelle Bern awarded [R.] a half disability pension with a degree of disability of 55%. By orders dated October 25, 2006, the IV-Stelle retroactively reduced the pension of R.'s spouse and demanded the repayment of overpaid benefits. Subsequently, the IV-Stelle also retroactively reduced R.'s pension from February 1, 2003. [R.] filed a complaint against these orders.

The Administrative Court of the Canton of Bern annulled the orders, as no prior notice procedure had been carried out before they were issued. The IV-Stelle then filed a complaint with the Federal Supreme Court.

Considerations

The Federal Supreme Court partially upheld the IV-Stelle's complaint. It decided that although the right to be heard must be granted before the retroactive pension reduction, no prior notice procedure is required.

The regulation in Art. 73bis para. 1 IVV, according to which no prior notice procedure is required in such cases, is in accordance with the law and the will of the legislator.…