The Federal Supreme Court recently had to rule on a case where a decedent's survivors received benefits from the AHV/AVS and the BVG/LPP. The same beneficiaries also received survivor benefits from the accident insurance (UVG/LAA), which was the same institution which paid the BVG/LPP pension benefits. The beneficiaries omitted to declare the UVG/LAA benefits to the occupational benefits institution.

Subsequently, the latter became aware of the UVG/LAA payments and demanded restitution on ground of overcompensation.

The beneficiaries then filed a complaint with the Federal Supreme Court asserting that the demand for restitution violated the principle of good faith and constituted prohibited arbitrary action. The Federal Supreme Court ruled that the complaint was inadmissible.

In its decision, the Court followed the reasoning that, considering the tenor of the letter they had received from the occupational benefits institution, the survivors must have known that the UVG/LAA benefits affected any other benefits payable to them by the occupational benefits institution. When they received the decision granting pension benefits from the accident insurer, the survivors should have informed the occupational benefits institution about their financial situation, which they did not.

In principle, it is up to the beneficiary to contact the occupational benefits institution and enquire about the benefits due, their calculation basis, and the relevant regulations. The timing, and the observance or non-observance by the social security institutions of their obligation to notify each other in accordance with Article 49 (4) of the Federal Act on General Social Insurance (ATSG/LPGA), do not alter the fact that the beneficiaries have an obligation to notify.

Moreover, occupational benefits institutions may reduce their survivor and disability benefits if, together with other income to be taken into account, they exceed 90% of the presumable loss in income in accordance with Article 24 (1) BVV2/OPP2 (Ordinance on Occupational Retirement, Survivors' and Disability Pension Plans). In addition, Article 24(4) BVV2/OPP2 provides that beneficiaries must inform the occupational benefits institution of all benefits and income entering into account.