Crediting of Renounced Assets in the Calculation of Supplementary Benefits

Facts

The divorced Gottfried B., born in 1920, first filed an application for supplementary benefits to the AHV/IV in 1989. In calculating the supplementary benefits, the Compensation Fund of the Canton of Bern took into account a sum of CHF 80,000.-- paid out by the insured to his children in December 1988 as a renunciation of assets. Gottfried's daughter Ruth B. filed a complaint against this crediting. The Federal Social Insurance Office then filed an administrative court appeal with the request to reduce the creditable renunciation of assets.

Considerations

The Federal Supreme Court states that according to Art. 3 para. 1 lit. f SBA, income and assets that have been renounced must be taken into account in the calculation of the supplementary benefit. The lower court rightly dismissed the complaint on this point. However, the amount of the creditable renunciation of assets is disputed. The Federal Supreme Court notes that Art. 17a SBO, which provides for an annual reduction of the renunciation of assets by CHF 10,000.-, is applicable in the present case. This provision, which the Federal Council has issued on the basis of Art. 3 para. 6 SBA, is neither unconstitutional nor contrary to the law. It serves to ensure…