Ordinance on the Lucerne Pension Fund (VoLUPK) - Obligations of the Canton (VoLUPK)

1. The canton shall assume the following obligations as of December 31, 1999

a. Increase of retirement credits including interest by 50 percent,

b. Positive differences between the amount according to Article 17 FZG and the retirement savings,

c. Re-entry credits including interest,

d. Capitalized inflation supplements on current pensions,

e. Positive or negative balance of special accounts for retirement benefits and for pension adjustment to price changes,

f. Deficit according to the liquidation balance sheet,

g. Costs for balancing the coverage ratios of the funds pursuant to § 71 paragraph 2.

2. The amounts according to paragraph 1 shall be

a. Accrued with interest at 4 percent during the years 2000 and 2001,

b. * Paid from the year 2002 until full repayment of the debt in the form of annual arrears with annuities (interest 4 percent).

1. The canton pays the Lucerne Pension Fund the total amount for interest and annuities in accordance with § 68.

2. It resorts to the municipalities and the employers affiliated as of December 31, 1999, according to the following rules

a. The payment obligation for the interest and annuities of the Cantonal Pension Fund Lucerne is divided between the canton and the affiliated employers in proportion to the increase amounts according to § 68 paragraph 1a. However, the annual payment of the affiliated employer according to § 68 paragraph 2 shall not exceed 4.5 percent of his insured salary as of December 31, 1999. The government council may waive the payment obligation in whole or in part in cases of hardship.

b. The payment obligation for the interest and annuities of the Teachers' Pension Fund of the Canton of Lucerne is divided as follows

1. The division of the total amount between the canton and the municipalities on the one hand and the affiliated employers on the other is based on the insured salaries as of December 31, 1999.

2. The share to be borne by the canton and the municipalities is divided in the ratio of 35 percent (canton) and 65 percent (municipalities).

3. The share to be borne by the municipalities is divided based on the insured salaries as of December 31, 1999.

3. The government council calculates the annuities according to §§ 68 and 69 based on the liquidation balance sheets and publishes the amounts as soon as possible in an appendix to this regulation.

4. Each employer may redeem the annuities at any time through the transfer of the capital amount.

1. The ordinance shall come into effect with the amendment to § 83 of the Personnel Act concerning the new Lucerne Pension Fund as proposed to the Grand Council.

2. The approval of §§ 43, 44, 68, 69, and 71 by the Grand Council is reserved.

3. This ordinance shall be published.