Transfer of Vested Benefit Account to a Liechtenstein Account

Facts

[B.], residing in the Principality of Liechtenstein, opened a vested benefits account with Pension Foundation [A.] in 2004. At the end of 2011, [B.] had the account dissolved and requested that the balance be transferred to a new vested benefits account at a Liechtenstein bank. However, Pension Foundation [A.] made a valuation adjustment and deducted previous withdrawals. [B.] subsequently filed a lawsuit against Pension Foundation [A.] with the aim of having the remaining amount transferred to the new account.

Considerations

The Federal Supreme Court ruled that Pension Foundation [A.] had wrongfully made the valuation adjustment. In the case of a vested benefits account in the form of a pure savings solution, such an adjustment is not permissible under Art. 13 para. 5 VBO. Even if it had been an investment-linked savings solution, a reduction would not have been permissible due to a lack of substantive justification.

Regarding the cross-border transfer of the vested benefits balance to an account in Liechtenstein, the Federal Supreme Court followed the opinion of the Federal Social Insurance Office. According to the Second Additional Agreement to the Social Insurance Agreement between Switzerland and Liechtenstein, such a transfer is only permissible if the insured…