Legal Force of Compensation Orders Issued by the Compensation Fund in Case of Late Appeal

Facts

This case dealt with the question of how to handle compensation orders issued by the Compensation Fund when the appeal against them was filed late. The Federal Social Insurance Court had to examine whether the Administrative Court of the Canton of Glarus had rightly entered into the declaratory action brought by the Compensation Fund.

According to the provisions of the Federal Act on Old-Age and Survivors' Insurance (OASI Act) and the corresponding Ordinance (OASI Ordinance), the Compensation Fund must first assert the compensation by means of an order. Against this order, the person concerned can file an appeal within 30 days. If no appeal is filed or if the appeal is filed late, the order becomes legally binding and is considered an enforcement title within the meaning of the Federal Act on Debt Enforcement and Bankruptcy (DEBA).

Considerations

The Federal Social Insurance Court concluded that in such a case, both procedural paths are permissible: Either the Compensation Fund can directly take the debt enforcement route if it is undisputed that no appeal has been filed, or it can choose the action route under Article 81 paragraph 3 OASI Ordinance to have the legal force of its compensation order determined.