Calculation of vested benefits under two pension regimes

ATA/647/1996Court of Justice / Administrative ChamberNov 5, 1996Confirmed

Extracted by Omnilex

Omnilex summary

An insured person had made pension contributions before and after the entry into force of the LPP with the same institution. The court held that the vested benefits must be calculated by comparing the two amounts indicated in Art. 28(2) LPP and awarding the higher one, in addition to the benefits accrued before the LPP entered into force.

Omnilex headnote

Art. 28 al. 2 LPP; calculation of vested benefits where contributions were made under two successive legal regimes with the same institution of occupational pension provision. The Federal Court applies a comparative method: the amounts resulting from the two statutory calculation bases must be compared, and the higher amount is to be granted. The pre-LPP accrued occupational pension entitlement remains preserved separately and is not absorbed by the comparative calculation. This method prevents the insured person from being disadvantaged by the transition between regimes.

Full text

Descripteurs

ASSURANCE SOCIALE; LIBRE PASSAGE(ASSURANCES); COMPTE DE LIBRE PASSAGE; LICENCIEMENT ECONOMIQUE; RACHAT(ASSURANCE); SOMME DE RACHAT; ASSU

Normes

LPP.28 al.2

Résumé

Lorsqu'un employé a versé des contributions à une même institution de prévoyance avant et après l'entrée en vigueur de la LPP, soit sous deux régimes juridiques différents, le montant de la prestation de libre passage doit être calculé selon la méthode dite "comparative" du TF, soit par comparaison entre les deux valeurs indiquées à l'art. 28 LPP. La somme la plus élevée doit être allouée en passant en sus du montant afférent à la prévoyance constituée avant l'entrée en vigueur de la LPP.

Keywords

social insurancevested benefitspension institutioncomparative methodoccupational pensionretirement savings

Extracted by Omnilex

Key legal questions extracted by Omnilex

Key legal question

How should the vested benefits be calculated when contributions were made both before and after the entry into force of the LPP under two regimes?

Extracted holding

The vested benefits must be calculated using the Federal Court's comparative method: the two values referred to in Art. 28(2) LPP are compared, and the higher amount is awarded in addition to the pre-LPP occupational pension entitlement.

Extracted reasoning

When the same insured person has accrued rights under two successive legal regimes with the same institution, the court applies a comparative calculation to avoid an unjustified disadvantage. The higher of the two statutory values governs, while the pre-LPP accrued benefits remain separately preserved.

Calculation of vested benefits under two pension regimesAI generated