General Provisions

1. The Schaffhausen Pension Fund PKSH (hereinafter referred to as the Pension Fund) is an independent public-law institution with its own legal personality and is located in Schaffhausen.

1. The pension fund aims to provide occupational benefits for individuals employed by the Canton of Schaffhausen and affiliated employers.

1. The pension fund is a registered provident institution in accordance with the Federal Act on Occupational Old Age, Survivors' and Disability Pension Plans (BVG) of June 25, 1982, and provides at least the benefits stipulated in this Act.

1. The Management Commission is the supreme body of the pension fund.

2. It consists of ten individuals elected for a term of office, of which five represent the employers and five represent the employees. Four of them must be members of the pension fund.

3. The Government Council elects specialists as employer representatives to the Management Commission. It consults with the affiliated employers beforehand.

4. The Management Commission determines the election of the employees' representatives. It may provide for a retiree representative with an advisory voice.

5. The Management Commission submits the annual report to the Government Council for the attention of the Cantonal Council and the employees' representatives.

1. The employment relationship between the management and employees of the pension fund is governed by private law (Art. 319 et seq. of the Code of Obligations).

1. The Administrative Commission may enter into affiliation agreements with

a) public-law corporations and institutions headquartered in the Canton of Schaffhausen

b) private-law legal entities in which the Canton or an affiliated corporation or public-law institution holds a significant interest, or which perform public or charitable functions

2. Individuals insured under an affiliation agreement are members of the fund with all rights and obligations.

1. For employees of the canton or an affiliated employer who meet the requirements of Art. 7 of the Occupational Pensions Act (BVG), membership in the pension fund is mandatory.

2. Employees with multiple employers, whose total income earned with the canton and affiliated employers meets the requirements for membership, may request insurance with the pension fund.

3. The insurance obligation is governed by the Occupational Pensions Act (BVG). Specifically defined groups of personnel may be exempted from the insurance obligation with the pension fund in the subsequent contract or the regulation of the government council.

1. The insured salary is based on the gross annual salary subject to AHV contributions, as long as it is earned with an employer affiliated with the pension fund.

2. Wage components that occur only occasionally, because they vary in payment mode or amount, are not considered when determining the insured salary, namely

a) Loyalty bonuses and long-service awards

b) Bonuses, participations, or similar benefits dependent on performance or business results

c) Compensation and bonuses for overtime or extra hours

d) Severance payments and other benefits upon termination of employment

e) Compensation for unused vacation upon termination of employment

f) Inconvenience compensation for night, weekend, on-call duties, and similar shift work

g) Special service allowances and allowances for temporarily assumed additional functions

h) Allowances of an expense nature

i) Any other occasionally occurring wage components are specified in the regulations

3. To coordinate with the benefits of the AHV and IV, a portion determined by the management committee is not insured from the insurable salary. However, the deduction must not exceed half of the insurable salary.

4. In the case of part-time work, the coordination deduction is reduced in accordance with the degree of employment.

5. The insured salary must not exceed 1.5 times the insured salary at the maximum of the highest salary range of the cantonal salary regulation, subject to Art. 79c BVG.

6. The insured salary is rounded to the nearest CHF 100.00.

1. Employers and members of the pension fund are obliged to provide the pension fund with all information relevant to the execution of the insurance. The management commission shall regulate the details.

2. Employers and members are liable for all financial consequences incurred by the pension fund due to omitted or delayed notifications.

1. Employers are obligated to remit the members' contributions along with the corresponding employer contributions to the pension fund without delay, but no later than the fifth day of the following month.

2. Contributions paid late shall incur interest at the BVG minimum interest rate plus 2 percent.

1. An index fund financed by the employers or from the free resources of the fund is established for the financing of future index allowances on ongoing pensions.

2. In the event of a shortfall, the resources available in the index fund shall be used as necessary to remedy the shortfall.

1. The pension fund collects risk, savings, and stabilization contributions from the actively insured and from the employers. The total sum of the savings contributions constitutes the corresponding retirement credit for the actively insured.

2. The ratio of the total contributions of the actively insured to the total contributions of the employers shall be 1:1.5.

3. The premiums are due monthly. The first premium is collected upon entry by the 15th day of the enrollment month, otherwise in the following month. The last premium is collected in the month in which the membership ends or an insurance event occurs. The invoice is issued to the employer.

1. The employers and the insured contribute the following maximum risk and savings contributions as percentages of the insured salary

Applicable Age | Active Insured Risk Contribution | Savings Contribution | Total | Employer Risk Contribution | Savings Contribution | Total

--- | --- | --- | --- | --- | --- | ---

18 to 24 | 1.2 | 0.0 | 1.2 | 1.8 | 0.0 | 1.8

25 to 30 | 3.0 | 7.0 | 10.0 | 0.0 | 10.5 | 10.5

31 to 35 | 3.0 | 8.0 | 11.0 | 0.0 | 12.0 | 12.0

36 to 40 | 3.0 | 9.0 | 12.0 | 0.0 | 13.5 | 13.5

41 to 45 | 3.0 | 10.0 | 13.0 | 0.0 | 15.0 | 15.0

46 to 50 | 3.0 | 11.0 | 14.0 | 0.0 | 16.5 | 16.5

51 to 55 | 3.0 | 12.0 | 15.0 | 0.0 | 18.0 | 18.0

from 56 | 3.0 | 13.0 | 16.0 | 0.0 | 19.5 | 19.5

2. The pension fund may offer additional retirement plans besides a standard retirement plan, in which the active insured pay additional savings contributions. The employer's contributions must have the same value in every retirement plan.

3. The management commission establishes the premium rates in the regulations.

1. For the accumulation of the fluctuation reserves, the funding of an index fund, and to address an underfunding in accordance with Article 65d of the Swiss Federal Law on Occupational Retirement, Survivors' and Disability Pension Plans (BVG), the fund imposes a stabilization contribution on active insured members and employers. Active insured members contribute stabilization payments only in the event of an underfunding.

2. With a coverage ratio between 100% and 115%, the stabilization contribution for employers amounts to 3% of the insured salary. This contribution is used for the accumulation of the fluctuation reserves.

3. From a coverage ratio of 115%, the stabilization contribution for employers is a maximum of 2% of the insured salary. This contribution is used for the accumulation of the index fund.

4. In the event of an underfunding, the stabilization contribution for employers is 4% and for active insured members is a maximum of 0.5% of the insured salary. This contribution is used entirely for remediation.

1. In the event of an underfunding with a coverage ratio of at least 90%, the management committee may set the interest rate for the retirement savings of active insured persons up to 0.5% lower than the minimum interest rate determined by the Federal Council (interest rate reduction by a maximum of 0.5%). If the coverage ratio falls below 90%, the management committee must decide on a reduction in interest rates.

2. For each 0.25% reduction in the interest rate for the retirement savings of active insured persons below the minimum interest rate, the stabilization contribution of the employers is increased by 0.9%. The additional stabilization contribution of the employers is capped at 3.6%.

1. For the contributions and measures pursuant to Articles 14 and 15, the coverage ratio determined by the pension fund as of September 30 is decisive. The contributions and measures take effect from January 1 of the following year.

1. Upon the entry into force of this law, the term of office for the administrative commission elected for the 2013-2016 term shall end prematurely. A new election shall be held for the remainder of the term.

1. Regulation of the Government Council on the Cantonal Pension Fund Schaffhausen (Pension Fund Regulation) remains in force with all provisions that do not contradict this law, until it is replaced by the Administrative Commission.

1. The following decrees are amended as follows

1. This law is subject to referendum.

2. This law shall enter into force on November 1, 2013.

3. The law is to be published in the Official Gazette and incorporated into the cantonal legislative collection.