The economic upheaval caused by the pandemic has impacted many companies. Employees are the first to suffer, as they risk losing their jobs. Employers, who do not terminate employment contracts, may temporarily reduce their employees’ salaries.

If an employer does reduce a salary temporarily on economic grounds, this could affect the insured salaries registered with the pension fund, resulting in lower savings contributions for the employees. The affected employees would therefore build up less retirement savings capital, and their pension benefits would be lower. The legal provision in Article 8(3) offers protection for the event of such a temporary reduction in salary as a result of illness, accident, unemployment, maternity or paternity leave and similar causes. This provision states, that the coordinated salary shall be maintained at least for the period in which the employer is legally obligated to pay the salary under Articles 324a, 329f and 329g of the Swiss Code of Obligations (CO). Adherence to this provision is mandatory. Many occupational benefits institutions have included this provision in their regulations on extra-mandatory benefits. This rule ensures that, in the event of temporary reductions in salary, members maintain their benefits coverage in the same scope, and that existing reversionary benefits are preserved. The Federal Social Insurance Office (BSV/OFAS) holds the view that coronavirus-related reductions in salary qualify as salary reductions within the meaning of Article 8(3) BVG/LPP.

Notwithstanding, a member may request a reduction of his insured salary.