Can I apply for state supplementary benefits (SB)?

Eligibility for and calculation of state supplementary benefits (SB) is complex. Many details only become apparent once a concrete application is submitted to the cantonal compensation office. This flash therefore focuses on the big picture.

If you meet the eligibility criteria, your potential entitlement to monthly supplementary benefits is calculated as the difference between recognized expenses and credited income.

Recognized expenses:

• Actual health insurance premiums – up to the cantonal average premium
• Cost of living – up to CHF 20,670 for single persons or CHF 31,005 for married couples
• Housing costs/rent – up to CHF 18,900 for single persons or CHF 22,320 for married couples

Additional costs such as alimony, childcare expenses and – if employment continues – professional expenses and social security deductions may also be taken into account. Medical and disability-related expenses are reimbursed separately.

Credited income:

• Actual AHV and pension fund pensions
• Other income – all additional taxable income besides pensions
• Asset depletion – if assets exceed the allowance of CHF 30,000 (single persons) or CHF 50,000 (married couples), 10% of the assets above the threshold are counted as income

A particularly important point concerns supplementary benefits and lump-sum withdrawals from pension funds. While withdrawing capital reduces the pension counted as income, it simultaneously increases assets. This may lead to loss of eligibility and part of the increased assets may be counted as income.

In theory one might think of withdrawing capital, spending it and then applying for supplementary benefits. However, this loophole has largely been closed since 2021 through legal provisions addressing excessive asset consumption.