Supplementary Benefits to the Old Age and Survivors' Insurance Scheme
Ergänzungsleistungen zur Alters- und Hinterlassenenversicherung
Coverage
- Primarily recipients of an old age pension from the old age and survivors’ insurance scheme with a domicile and habitual residence in Switzerland who cannot sufficiently cover their basic living needs from income.
- Persons who are not Swiss citizens or EU/EFTA nationals subject to the Agreement on the Free Movement of Persons, i.e. nationals of other states, who additionally have to have resided in Switzerland for ten years without interruption before applying for supplementary benefits. The waiting period for refugees and stateless persons is five years.
Financing
- The scheme is entirely tax-financed out of the general budget. The Federal Government covers 5/8, the cantons 3/8 of the costs.
- Costs associated with illness or disability, which make up part of the supplementary benefits, are assumed entirely by the cantons.
Administration
- The cantons determine the exact amount of supplementary benefits (within the federal framework) and pay them, and thus have the power to determine the responsible authorities. In most cases, that role is assumed by the cantonal compensation offices (Ausgleichskassen). The cantonal social assistance authorities may not be charged with this task.
- The compensation office in the canton of the person’s residence reviews their application, decides on eligibility, determines and pays out benefits.
Qualifying Conditions
- Recipients of an old age pension from the old age and survivors’ insurance scheme.
- Persons with a domicile and habitual residence in Switzerland. Habitual residence in Switzerland is deemed interrupted if a person stays abroad for more than three months at a time, or stays abroad for more than three months overall in a calendar year.
- Benefits are means-tested based on income of a single person or spouses. Benefits are moreover only granted to single persons who have less than CHF 100,000 net capital, or spouses who have less than CHF 200,000. The net capital does not include self-used residential property.
- Supplementary benefits can be paid only if all other social insurance benefits have been exhausted.
Benefits
- Supplementary benefits consist of an annual supplementary benefit and the reimbursement of the costs associated with illness or disability.
- The amount of benefits corresponds to the amount by which recognised expenses exceed applicable income. Recognised expenses include, for example, a fixed annual amount for general living expenses (food, clothes, electricity, water, taxes etc.); rent and additional related costs; the cost of a long-term stay in a home or hospital; premiums of the compulsory health insurance scheme; alimonies paid under family law.
- With regard to recognised expenses and applicable income, a distinction is made as to whether the person in question lives at home or is a permanent or long-term resident of a nursing home or hospital.
- Reimbursements for costs associated with illness or disability will be made for verified, necessary and unavoidable costs incurred for dental treatment; support, care and assistance at home and in day centres; temporary stays in a home or hospital; spa treatments and health cures prescribed by a doctor; diets; transportation to the closest treatment site; aids and appliances; cost sharing under the compulsory health insurance scheme.
- Benefits are typically renewed as long as qualifying conditions persist. Benefit payments are temporarily suspended if conditions are not met.
- Benefits are not subject to income tax.
Coverage
Financing
Administration
Qualifying Conditions
Benefits
- Primarily recipients of an old age pension from the old age and survivors’ insurance scheme with a domicile and habitual residence in Switzerland who cannot sufficiently cover their basic living needs from income.
- Persons who are not Swiss citizens or EU/EFTA nationals subject to the Agreement on the Free Movement of Persons, i.e. nationals of other states, who additionally have to have resided in Switzerland for ten years without interruption before applying for supplementary benefits. The waiting period for refugees and stateless persons is five years.
- The scheme is entirely tax-financed out of the general budget. The Federal Government covers 5/8, the cantons 3/8 of the costs.
- Costs associated with illness or disability, which make up part of the supplementary benefits, are assumed entirely by the cantons.
- The cantons determine the exact amount of supplementary benefits (within the federal framework) and pay them, and thus have the power to determine the responsible authorities. In most cases, that role is assumed by the cantonal compensation offices (Ausgleichskassen). The cantonal social assistance authorities may not be charged with this task.
- The compensation office in the canton of the person’s residence reviews their application, decides on eligibility, determines and pays out benefits.
- Recipients of an old age pension from the old age and survivors’ insurance scheme.
- Persons with a domicile and habitual residence in Switzerland. Habitual residence in Switzerland is deemed interrupted if a person stays abroad for more than three months at a time, or stays abroad for more than three months overall in a calendar year.
- Benefits are means-tested based on income of a single person or spouses. Benefits are moreover only granted to single persons who have less than CHF 100,000 net capital, or spouses who have less than CHF 200,000. The net capital does not include self-used residential property.
- Supplementary benefits can be paid only if all other social insurance benefits have been exhausted.
- Supplementary benefits consist of an annual supplementary benefit and the reimbursement of the costs associated with illness or disability.
- The amount of benefits corresponds to the amount by which recognised expenses exceed applicable income. Recognised expenses include, for example, a fixed annual amount for general living expenses (food, clothes, electricity, water, taxes etc.); rent and additional related costs; the cost of a long-term stay in a home or hospital; premiums of the compulsory health insurance scheme; alimonies paid under family law.
- With regard to recognised expenses and applicable income, a distinction is made as to whether the person in question lives at home or is a permanent or long-term resident of a nursing home or hospital.
- Reimbursements for costs associated with illness or disability will be made for verified, necessary and unavoidable costs incurred for dental treatment; support, care and assistance at home and in day centres; temporary stays in a home or hospital; spa treatments and health cures prescribed by a doctor; diets; transportation to the closest treatment site; aids and appliances; cost sharing under the compulsory health insurance scheme.
- Benefits are typically renewed as long as qualifying conditions persist. Benefit payments are temporarily suspended if conditions are not met.
- Benefits are not subject to income tax.
Legal Basis: Federal Constitution of the Swiss Confederation (Bundesverfassung der Schweizerischen Eidgenossenschaft [BV]); Federal Act on Benefits Supplementary to the Old Age, Survivors’ and Invalidity Insurance (Bundesgesetz über die Ergänzungsleistungen zur Alters-, Hinterlassenen- und Invalidenversicherung [ELG]); Ordinance on Benefits Supplementary to the Old Age, Survivors’ and Invalidity Insurance (Verordnung über die Ergänzungsleistungen zur Alters-, Hinterlassenen- und Invalidenversicherung [ELV]).