Criteria for the guarantee

The Guarantee Fund guarantees the benefits of insolvent benefit schemes (Art. 56 para. 1, letters b. and c. LOB).

A benefit scheme is insolvent if it cannot pay statutory or regulatory benefits which are due and restructuring is no longer possible (Art. 25 para. 1 SFV). Under Art. 44, para 2 BVV2, the benefit scheme must itself eliminate cover gaps.

The restructuring of a benefit scheme is no longer possible if liquidation, bankruptcy or similar proceedings have been initiated against it (Art. 25 para. 2, letter a. SFV). The supervisory authority decides on the opening of liquidation proceedings and hence on the possibility of restructuring.