Facts
The case concerns a pensioner (N.) born in 1924, who has been receiving supplementary benefits to the old-age and survivors' insurance (AHV) pension since March 1, 1988. The Compensation Fund of the Canton of St. Gallen carried out a retroactive recalculation of the supplementary benefits based on an inheritance that N. had accepted in 1988. The Fund assumed that N. had not been able to prove the consumption of the total assets of CHF 148,125 that had accrued to her, and therefore included this amount as hypothetical assets in the calculation of the supplementary benefits.
N. filed a complaint against the decisions of the Compensation Fund. The Insurance Court of the Canton of St. Gallen annulled the decisions and referred the matter back to the administration for a new calculation of the supplementary benefits retroactively from November 1, 1988. The Compensation Fund then filed an administrative court appeal with the Federal Supreme Court.
Considerations
The Federal Supreme Court states that in the area of supplementary benefits, the principle applies that only actually received income and existing assets that the beneficiary can fully dispose of are to be taken into account. A restriction of this principle occurs where the insured person has waived assets without a legal obligation and without adequate…