No adjustment in survivor and IV/AI pensions under the BVG/LPP

According to the Federal Social Insurance Office (BSV/OFAS), on 1 January 2014, survivor and disability pensions under basic BVG/LPP coverage do not have to be adjusted for increases in the cost of living.

Although Article 36(1) of the Federal Law on Retirement, Survivors’ and Disability Pension Plans (BVG/LPP) provides that pensions must be periodically adjusted for increases in the domestic consumer price index, inflation compensation only has to be granted after three years.

In September 2013, the consumer price index was at practically the same level as in September 2010 (99.2 vs. 100): accordingly, pensions do not have to be increased on 1 January 2014.

Survivor and disability pensions which became payable before 2012 will be adjusted with the next increase in AHV/AVS pensions, i.e. not before 01.01.2015.