Reintegration of pension recipients

The disability insurance pension is no longer guaranteed for life. After the principle of "once a pension, always a pension" had long applied, the 5th IV revision initiated the change from disability insurance to integration insurance. Since then, "pension as a bridge to integration" has applied, with the aim of reducing the number of pensions and increasingly returning benefit recipients to the labour market. Protective measures are intended to protect pension recipients from losing their pension if they fail to reintegrate into the labour market.

Pension recipients are entitled to reintegration measures if these are likely to improve their earning capacity or if the measures are suitable for improving their earning capacity (Art. 8a IVG). If reintegration into the labour market is successful, the previous pension will be reduced or cancelled. If you were previously entitled to a pension from the pension fund, this pension will also be adjusted accordingly. Disability insurance assumes successful integration if a stable work performance can be maintained for more than three months and thus a pension-excluding or pension-reducing income can be achieved. If the disability insurance and pension fund pensions are reduced or cancelled after successful reintegration, the insured person remains insured with the pension fund liable to pay benefits for three years under the same conditions (Art. 26a BVG).

If, after more than three months of reintegration and within a maximum of three years, the insured person becomes more than 50 per cent incapacitated for work again, they are entitled to transitional benefits after 30 days (Art. 32 IVG). As long as the insured person receives a transitional benefit, the insurance cover and entitlement to benefits from the pension fund are maintained. In this case, the disability insurance fund will carry out a further review and redetermine the degree of disability. During the revision procedure, there is an entitlement to a transitional benefit in the amount of the original pension or, in the event of a reduction to a partial pension, in the amount of the difference to the original pension (Art. 33 IVG).

However, caution is required when taking the step towards reintegration. This is because the protective measures are only intended for pension recipients with presumed reintegration potential for whom the state of health has not undergone any significant change (Federal Supreme Court judgement of 23 December 2015, 9C_324/2015, E. 5). If the disability insurance company is of the opinion that there is not only a potential for integration, but that the state of health may have improved, it can initiate a review procedure. As part of the review procedure, it will examine whether there is still any entitlement to a pension. If there is a significant improvement in the state of health, the disability insurance and pension fund pension will be reduced accordingly or cancelled altogether. In the latter case, there is no longer any entitlement to reintegration measures from the disability insurance. Exceptions only apply if the period of entitlement exceeds 15 years or if the insured person is over 55 years of age. Former pensioners are therefore left to fend for themselves when it comes to reintegration after their pension has been cancelled. The protective measures of Art. 32 IVG (transitional benefits) and provisional continued insurance with the pension fund (Art. 26a BVG) do not apply if reintegration fails within three years. The possibility of re-registration with the disability insurance remains. It must be possible to credibly demonstrate a significant deterioration in the state of health.

The statutory protection in the event of reintegration depends crucially on the state of health. It is often difficult to answer the question of whether a person only has the potential for reintegration or whether their state of health has improved at the same time. Due to the far-reaching consequences, it is advisable to discuss the reintegration plans with the attending physician before the disability insurance is involved. It is important to clarify with him how he assesses the health situation and whether reintegration is realistic. If you have any questions or uncertainties, we also recommend that you contact a specialised lawyer.