Facts
Karl S., born on June 8, 1918, suffers from a pathological hoarding disorder and other mental impairments, for which reason he is under guardianship. Until reaching the age of 65, he had received a full disability pension. In connection with the assessment of his entitlement to an old-age pension as of July 1, 1983, the administration became aware that he had been employed as a caretaker in a hotel since mid-June 1981, which had not been reported by the guardian or the insured person. The Compensation Fund of the Canton of Zürich subsequently retroactively reduced the previous full disability pension to a half pension as of early October 1981 and demanded reimbursement of the overpayments totaling CHF 9,732.-- made from October 1, 1981 to June 30, 1983, on the assumption of a breach of the duty to report.
Considerations
The Federal Insurance Court first examines what constitutes the subject matter of the dispute and according to which cognition this subject matter is to be assessed. It finds that both the obligation to reimburse and the waiver of reimbursement are part of the subject matter of the dispute.
With regard to the obligation to reimburse, the court's power of review also extends to the appropriateness of the contested decision. For the waiver of reimbursement, on the other hand, only a violation of federal law, including exceeding or abusing discretion, can be challenged.
The court finds that the appellant cannot be held responsible for the breach of the duty to report due to his lack of mental capacity. The official guardian has committed a…