Offsetting of subsequently awarded supplementary benefits against advance payments for children

Facts

In this case, the question was whether subsequently awarded supplementary benefits could be paid directly to a welfare office to offset advance payments made for the daughter of the person entitled to supplementary benefits.

The Old Age and Survivors' Insurance Institution of the Canton of St. Gallen had subsequently awarded supplementary benefits to M. The guardianship office demanded that these benefits be paid directly to it in order to offset the advance payments it had made for M.'s daughter.

The cantonal court had considered this third-party payment to be inadmissible. The Old Age and Survivors' Insurance Institution appealed against this to the Federal Supreme Court.

Considerations

The Federal Supreme Court stated that Art. 22 para. 4 of the Supplementary Benefits Ordinance (ELV) provides a sufficient basis for third-party payments of subsequently awarded supplementary benefits to institutions that have made advance payments. The additional requirements under Art. 76 AHVV do not have to be met.

However, it is not permissible to exclude a portion of the supplementary benefit that is attributable to the beneficiary's daughter. Children who are included in…