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The Federal Court intervenes: In most cases, municipalities are no longer allowed to force social assistance recipients to have vested benefits paid out at the age of 60.
The verdict begins with a social welfare recipient from the canton of Basel-Landschaft. His municipality of residence had required him to withdraw his vested benefits from his pension fund at the age of 60 – i.e. at the earliest possible date. The problem: With a completely normal lifestyle, these assets would be completely used up before the person concerned could regularly receive the AHV at the age of 63.
That would be disproportionate, the Federal Court has now ruled – and the affected social assistance recipient is right. But it is not only a success for this man, but it is a guiding principle that has a nationwide significance. Because of this ruling, social assistance recipients must not be forced to have their vested benefits paid out if they would have already been used up by the time they reach the age limit of 63.
Skos sees his position confirmed
Markus Kaufmann, managing director of the Swiss Conference for Social Welfare (Skos), is pleased that there are now binding guidelines. He sees Skos’ position confirmed: “Our guidelines have been recommending for years that second and third pillar assets should only be released when the AHV advance withdrawal is made. With this ruling we now have more clarity.”
The question of whether municipalities can require social assistance recipients to withdraw their pension fund assets early has been controversial for a long time. In the canton of Aargau, for example, municipalities have no longer been able to require this for around two years. The Aargau cantonal government has banned this practice in an ordinance. Elsewhere, however, it was not so clearly regulated and in various Swiss communities this was still required of social assistance recipients.
This money was paid in as part of the job – by the employer and employee. Accordingly, it should also benefit the old age pension and not have to be used up for social assistance.
Andreas Lustenberger, member of the management board of Caritas Switzerland, is therefore happy about the new Federal Court ruling. From now on, this will ensure “that it is clear to all social services, the cantons and the municipal social services how they have to handle this. There are regional differences, particularly in the area of social assistance, which can lead to unequal treatment.” A certain degree of harmonization is therefore to be welcomed.
Municipalities are likely to struggle with the decision
It’s also a question of fairness, emphasizes the Caritas manager. He thinks it is wrong to mix the withdrawal of pension fund money and the question of social assistance: “The vested benefits account is about occupational pension provision. This money was paid in as part of the work – by the employer and employee.” Accordingly, it should also benefit the old age pension and not have to be used up for social assistance.
The possibility of forcing social assistance recipients to withdraw pension fund money is therefore severely restricted. Not all community leaders will be happy about this – with this practice they were trying to reduce the costs of social welfare payments. But at least the rules of the game are now clear to everyone.