Intercantonal Agreement on the BVG and Foundation Supervision of the Cantons of Zurich, Glarus, Schaffhausen, Appenzell Outer Rhodes, Appenzell Inner Rhodes, St. Gallen, Graubünden, Thurgau and Ticino - Joint Supervisory Region (BVG)

1. The cantons of Zurich, Glarus, Schaffhausen, Appenzell Ausserrhoden, Appenzell Innerrhoden, St. Gallen, Graubünden, Thurgau, and Ticino ("Agreement Cantons") constitute a joint supervisory region for the oversight of

a) Occupational pension schemes pursuant to Article 61 of the Federal Act of 25 June 1982 on Occupational Retirement, Survivors', and Disability Pension Plans (BVG);

b) Classical foundations pursuant to Article 84 of the Swiss Civil Code of 10 December 1907 (ZGB), provided the agreement cantons have assigned this responsibility to the institution.

1. Under the name "Supervisory Authority for Occupational Benefits and Foundations of the Cantons of Zurich, Glarus, Schaffhausen, Appenzell Ausserrhoden, Appenzell Innerrhoden, St. Gallen, Graubünden, Thurgau and Ticino," there exists an inter-cantonal public law institution with its own legal personality and its seat in Zurich.

1. The official language of the institution is German.

2. The institution provides its services related to an occupational pension scheme or a traditional foundation in an official language of the canton in which the agreement is made, where the scheme or foundation is headquartered.

1. The Institution

a) fulfills the tasks assigned to the cantons under federal legislation regarding occupational retirement, survivors', and disability pensions;

b) undertakes tasks in the area of traditional foundations, provided that the contracting cantons have transferred these tasks to it pursuant to Art. 35.

2. The contracting cantons may assign additional tasks in the area of traditional foundations to the institution, particularly the functions as a cantonal authority in accordance with Articles 85, 86, 86a, and 88 of the Swiss Civil Code (ZGB) and the handling of legal remedies.

1. Unless otherwise stipulated, the law of the Canton of Zurich shall apply.

1. The public personnel law of the Canton of Zurich applies to the employees of the institution.

2. The board of directors may issue divergent provisions in the personnel regulations, to the extent necessary for operational reasons.

3. Employees of the institution who are mandatorily insured under federal legislation on occupational old-age, survivors', and disability insurance must be insured with a staff pension institution that is not subject to the supervision of the institution.

1. Decisions of the Institution in the area of occupational pension schemes can be contested pursuant to Article 74 of the Federal Act on Occupational Retirement, Survivors' and Disability Pension Plans (BVG).

2. Decisions and appellate decisions of the Institution in the area of traditional foundations can be contested according to the legal provisions of the agreement canton to which the foundation belongs by its designation.

3. Other decisions and decrees of the Institution can be contested according to the legal provisions of the Canton of Zurich.

4. Appeals against decrees of the Institution do not have a suspensive effect.

1. Official Publications of the Institution are published in the official publication organs of the affected contracting cantons.

1. The Bodies of the Institution are

a) the Concordat Council;

b) the Board of Directors;

c) the Executive Management;

d) the Audit Office.

1. The Concordat Council consists of one member from each of the governments of the signatory cantons.

2. It constitutes itself and elects its chairperson from among its members.

3. The secretariat of the Concordat Council is managed by the executive committee.

1. The Concordat Council has a quorum when the majority of its members are personally present or participate in the meeting by electronic means.

2. Resolutions are passed by a simple majority of those voting. The chairperson votes along. In the event of a tie, their vote is decisive.

3. Resolutions can be made by circular. Any member can request a meeting.

4. The Chairperson of the Board of Directors and the Director participate in the meetings with an advisory vote and the right to make proposals.

1. The Concordat Council

a) elects the President and the other members of the Board of Directors;

b) determines the remuneration of the members of the Board of Directors;

c) approves the appointment or dismissal of the Director;

d) selects the audit firm;

e) approves the annual financial statement and the business report;

f) ensures appropriate reporting in the respective cantons that are party to the agreement;

g) approves the institution's regulations concerning organization, personnel, financial affairs, and fees;

h) arranges the details of a canton’s withdrawal from the agreement with the canton involved;

i) redefines the seat of the institution, the applicable law, and the jurisdiction of the courts if the Canton of Zurich withdraws from the agreement;

j) decides on the allocation of assets in the event of the amicable dissolution of the agreement.

2. It ensures that the members of the Board of Directors are independent and possess the necessary skills during the election process.

1. The compensation of the members of the Concordat Council is the responsibility of the participating cantons.

1. The Board of Directors consists of the Chairperson and four additional members.

2. The term of office is four years. Reelection is possible twice.

3. In other respects, the Board of Directors constitutes itself.

1. The Board of Directors is quorate if the majority of its members are personally present or participate in the meeting by electronic means.

2. Resolutions are passed by a simple majority of those voting. The President also votes. In the case of a tie, their vote is decisive.

3. Resolutions may be passed by circular resolution. Any member may request a meeting.

4. The Director participates in the meetings with an advisory vote and the right to make motions.

1. The Board of Directors

a) leads the institution in strategic and financial matters;

b) exercises direct supervision over the institution's business activities;

c) elects and dismisses the Director;

d) approves the election of the members of the Executive Management;

e) sets the budget and financial planning;

f) decides on the use of profits;

g) acknowledges the auditor's report;

h) approves the annual financial statements and the annual report;

i) issues the institution's regulations concerning organization, personnel, finance, and fees;

j) approves the institution's rules of procedure;

k) establishes the guidelines for the institution’s information activities.

1. The management consists of the director and other members appointed by her or him.

2. Otherwise, the management constitutes itself.

1. The Management

a) conducts the institution in professional, operational, and personnel matters;

b) issues the bylaws of the institution;

c) prepares the decision-making basis for the board of directors and reports to it regularly, and immediately in special cases;

d) prepares the annual financial statements and writes the management report;

e) performs all tasks not assigned to another body.

1. The auditor shall examine the annual financial statements and report the results to the board of directors.

1. The accounting is conducted in accordance with the principles of commercial bookkeeping.

2. The institution prepares a financial plan, a budget, and an annual report.

1. The institution is financed through cost-covering fees.

1. The Institution imposes

a) annual supervisory fees;

b) fees for individual audits, rulings, and other services.

2. The annual supervisory fee is determined based on the balance sheet total of the supervised entity, including surrender values. The following rates are distinguished for the following entities

a) collective and communal institutions;

b) other pension funds, including institutions serving the purpose of occupational pensions;

c) classical foundations.

3. The other fees are determined, within the framework stipulated by the fee schedule, based on the effort involved.

1. The equity capital amounts to 80 to 120 percent of the institution's annual expenditure.

2. If this range is undercut or exceeded, the Board of Directors shall increase or decrease the fees accordingly.

1. To ensure solvency, the contracting cantons may grant loans to the institution.

2. Loans are granted at cost.

3. The institution may repay loans in whole or in part at any time.

1. The institution is exempt from state, district, and municipal taxes of the contracting cantons.

1. The institution is liable for its obligations and for damages that its bodies and its employees unlawfully cause to third parties in the performance of their official duties.

2. It concludes liability insurance policies.

1. Arbitration Panel for Disputes

Disputes between the agreement cantons or between agreement cantons and the institution are decided by an arbitration panel.

2. Each party to the dispute shall appoint a member of the arbitration panel.

3. The parties to the dispute jointly appoint

a) a chairperson of the arbitration panel;

b) an additional member of the arbitration panel, if the panel would otherwise have an even number of members.

4. If the parties to the dispute cannot agree on a joint appointment, the President of the Administrative Court of the Canton of Zurich shall appoint the chairperson and, if necessary, an additional member of the arbitration panel.

1. Any contracting canton may withdraw from the agreement by giving two years' notice at the end of a calendar year. A withdrawal may be made for the first time five years after the agreement has entered into force.

2. The withdrawing contracting canton has no claim to shares in the assets of the institution.

3. The Concordat Council adjusts the wording of the title and of Articles 1 and 2 of the agreement.

4. Otherwise, the withdrawal of a contracting canton is regulated between the canton and the Concordat Council.

1. If the Canton of Zurich withdraws from the agreement, the Concordat Council shall newly determine the location of the institution, the applicable law in accordance with Articles 5 and 6, Paragraph 1, and the jurisdiction of the courts in accordance with Articles 7, Paragraph 3, and 27, Paragraph 4.

2. Paragraph 1 applies mutatis mutandis to a new host canton.

1. The agreeing cantons may mutually dissolve the agreement at the end of a calendar year by a unanimous decision of their competent bodies, subject to a two-year notice period.

2. The Concordat Council decides on the use of the assets.

1. As of the effective date of this agreement, all assets and liabilities as well as all contracts of the BVG and Foundation Supervision of the Canton of Zurich and the Eastern Switzerland BVG and Foundation Supervision shall transfer to the institution.

1. The BVG and Foundation Supervision of the Canton of Zurich and the Eastern Swiss BVG and Foundation Supervision shall be dissolved upon the entry into force of this agreement.

1. Liability for uncovered claims arising from the former activities of the BVG and Foundation Supervision of the Canton of Zurich and the Eastern Swiss BVG and Foundation Supervision shall be assumed by the institution for ten years from the effective date of this agreement, up to the amount of the equity contributed by the respective institution.

2. In addition, for claims arising from the former activities of the Eastern Swiss BVG and Foundation Supervision, the cantons of Glarus, Appenzell Ausserrhoden, Appenzell Innerrhoden, St. Gallen, Graubünden, Thurgau, and Ticino shall be secondarily liable pursuant to the liability rules of the Intercantonal Agreement on the Eastern Swiss BVG and Foundation Supervision dated September 26, 2005.

3. The liability of the Canton of Ticino is limited to claims that arose after its accession to the Eastern Swiss BVG and Foundation Supervision.

1. The initial capital of the institution consists of the equity capital provided by the BVG and Foundation Supervisory Authority of the Canton of Zurich and the Eastern Swiss BVG and Foundation Supervisory Authority.

2. The minimum equity capital according to Article 23, paragraph 1, must be fully accumulated within ten years.

1. The Institution assumes, upon the commencement of this agreement, the following tasks for the listed contracting cantons in the area of classical foundations

a) Canton of Zurich

1. Supervision, insofar as the districts or municipalities are not responsible under cantonal law;

2. Decision on appeals against orders of the districts and municipalities;

3. Function as a cantonal authority in accordance with Articles 85, 86, and 86a of the Swiss Civil Code (ZGB);

4. Function as a cantonal authority in accordance with Article 88 ZGB, insofar as the districts or municipalities are not responsible under cantonal law;

b) Canton of St. Gallen

1. Supervision;

2. Function as a cantonal authority in accordance with Articles 85, 86, 86a, and 88 ZGB;

c) Canton of Thurgau: all tasks of the canton;

d) Canton of Ticino

1. Supervision;

2. Function as a cantonal authority in accordance with Articles 85, 86, 86a, and 88 ZGB.

1. ...

2. The Concordat Council commences its activities on the first day of the month following the month in which all the cantons of the agreement have acceded to the agreement.

3. The Management Board commences its activities immediately after its election by the Concordat Council.