Denial of Default Interest on a Lump-Sum Benefit

Facts

The case concerns L.'s request to obtain default interest on his lump-sum benefit, paid by the Swiss Compensation Fund in May 2003. The beneficiary had reached the age of 65 on August 1, 2001, thus acquiring the right to the benefit. The administrative decision and the decision on the objection were issued on April 24, 2003 and June 24, 2003 respectively, therefore after the entry into force of the Federal Act on the General Part of Social Insurance Law (LPGA) on January 1, 2003. The main issue is whether the substantive provisions of the LPGA are applicable to this case.

Considerations

The Federal Social Insurance Court considers that, except for the specific cases covered by the transitional provision of Art. 82 para. 1 LPGA, the general principles of intertemporal law must be applied. This means that, in the event of a change in the legal basis, the legal system in force at the time of the realization of the factual situation to be legally assessed or producing legal consequences shall apply.

In the present case, the legally relevant factual situation for the right to the lump-sum benefit had already been realized before January 1, 2003. Therefore, the substantive provisions of the LPGA are not…