Waiver of Assets and Transitional Allowances for Older Unemployed Persons

Facts

Parties: The cantonal compensation office AVS/AI/IPG (appellant) and A. (respondent).

Facts: A., born in 1961, applied for transitional allowances for older unemployed persons on 30 September 2022. The compensation office rejected the application with a decision of 8 November 2022, as A. had not justified the consumption of his assets from CHF 123,193.- as of 31 December 2020 to CHF 508.05 as of 30 September 2022. The compensation office considered a waiver of assets amounting to CHF 71,147.40, which exceeded the threshold of CHF 50,000.- pursuant to Art. 5 para. 1 lit. c of the Federal Act on Transitional Allowances for Older Unemployed Persons (LPTD).

A. filed an appeal with the cantonal insurance court and submitted additional documentation. The compensation office revised its final submissions and considered a waiver of assets amounting to CHF 122,198.-. With a judgment of 30 May 2023, the cantonal court upheld the appeal, set aside the rejection decision, and referred the matter back to the compensation office for further examination.

The compensation office filed an appeal in public law matters with the Federal Supreme Court and requested the annulment of the cantonal judgment and the confirmation of the rejection decision.

Considerations

The Federal Supreme Court had to examine whether the cantonal court had violated federal law by denying the conditions for a waiver of assets.

Initially, the Federal Supreme Court explained the purpose of the transitional allowances pursuant to the LPTD, which are intended to support older unemployed persons who have exhausted their entitlement to unemployment benefits. These benefits are of an assistance nature and are financed from general federal funds. Entitlement to transitional allowances requires that the entitled person has assets below a certain threshold and has not made an unjustified waiver of assets.

The Federal Supreme Court analyzed the provisions of the LPTD, in particular Art. 13, which regulates the waiver of assets. Art. 13 para. 2 LPTD concerns the disposal of assets, while Art. 13 para. 3 LPTD concerns the excessive consumption of assets without valid reason. The Federal Supreme Court noted that the interpretation of these provisions can be made in the light of the case law on supplementary benefits (EL), with the exception of the temporal application of the excessive consumption of assets pursuant…