Termination of the Affiliation Agreement: Retirees Remain with the Previous Pension Fund

Facts

In this case, it was about the termination of the affiliation agreement between the Wallis Health Network (GNW) and the Comunitas Pension Foundation. Comunitas had terminated the affiliation agreement, which led to a dispute over the modalities of the termination. The Cantonal Court of Wallis ordered the GNW to pay Comunitas a lump-sum contribution to finance the future cost-of-living adjustment on the current pensions. The GNW then filed an appeal with the Federal Supreme Court.

Considerations

The Federal Supreme Court upheld the appeal. According to Art. 53e(5) and (6) OPA, there is a mandatory legal regulation in the event of termination of the affiliation agreement by the pension fund: the retirees remain with the previous pension fund, and the affiliation agreement continues to apply to them. The contractual provisions for the termination of the affiliation agreement, which provide for a one-time compensation for the cost-of-living adjustment, are therefore not applicable. Instead, the employer (GNW) must continue to provide the benefits provided for in the affiliation agreement for the financing of the current pensions.

The Federal Supreme Court held that an underfunding of…