Act on the Retirement Pension of the State Council (RRG) - Purpose (PKSO)

1. The law regulates the benefits of the canton upon the departure of a member of the Government Council from office and the transfer of the occupational pension provisions for active and former members of the Government Council and their survivors to the Pension Fund of the Canton of Solothurn (PKSO).

1. The Law on Pension applies to the current and former members of the Government Council and their survivors.

2. Benefits from the canton according to §§ 3 - 8 can be received by members of the Government Council who resign from office after the entry into force of this law.

1. The Basis for Calculating Ordinary Benefits under this Law

The basis for calculating the ordinary benefits under this law is constituted by the relevant and insured salary of the active member of the governing council. They have the following meanings for the purposes of this law

a) The relevant salary corresponds to the gross salary of the members of the governing council;

b) The insured salary as an active member corresponds to the relevant salary minus a coordination deduction, but at least the minimum coordinated salary.

1. Former members of the Council of Government are entitled to receive ordinary benefits from the canton if they leave office as a member of the Council of Government after having completed at least four full years of service and having reached the age of 55, but before reaching the age of 65.

2. If the event is attributable to a serious breach of official duty or a criminal offense, the Council of Government may reduce the benefits or deny their granting.

1. The canton pays former members of the Government Council, who fulfill the requirements of § 4 paragraph 1, a temporary pension.

2. The entitlement to the temporary pension arises in the month following the departure from the Government Council. It ends at the end of the month following the death of the former member of the Government Council or upon the commencement of the entitlement to a full invalidity pension of the Federal Disability Insurance, but no later than at the end of the month after reaching the age of 65.

3. The temporary pension is paid in twelve monthly installments simultaneously with the salaries of the cantonal employees.

1. The Temporary Pension Entitlement is

a) 60 percent of the salary insured by the PKSO for a minimum of four and less than eight completed years of service;

b) 80 percent of the salary insured by the PKSO for a minimum of eight completed years of service.

1. Severance payments from the Canton of Solothurn are granted to former members of the Council of State who do not meet the requirements under § 4, have completed at least one year of office, and leave the Council of State before reaching the age of 65 due to non-re-election, non-renomination, or for health reasons that significantly impede the performance of their duties.

2. The severance payment amounts to six monthly salaries.

3. The entitlement to the severance payment arises in the month following the departure from the Council of State.

4. The severance payment is disbursed in six monthly installments concurrently with the salaries of cantonal employees.

1. The temporary pension pursuant to § 6 or the severance payment according to § 7 shall be reduced by the amount that this or these, together with a regular salary, similar regular allowances, or other pension income, exceed the current gross salary as a member of the government council.

2. The former member of the government council shall provide the necessary information in writing upon request. If they fail to fulfill this obligation, the benefits will be reduced or denied.

1. The Executive Council shall implement this law and issue the necessary orders.

2. The procedure and legal protection shall be governed by the Law on Legal Protection in Administrative Matters dated November 15, 1970.

1. The Finance Commission of the Canton of Solothurn is authorized to conclude a connection and takeover agreement with the PKSO as of January 1, 2016.

2. The connection and takeover agreement regulates

a) the affiliation of the Canton of Solothurn to the PKSO as of January 1, 2016, concerning occupational benefits in accordance with the regulatory and statutory provisions of the PKSO and pursuant to the BVG for active members of the government council, former council members with pension benefits, and known and unknown pensioners who are entitled to a pension based on the Ordinance on Occupational Old Age, Survivors', and Disability Benefits for the Members of the Government Council dated July 4, 1990 (Government Council Pension Ordinance), and the insurance of the aforementioned individuals concerning occupational benefits according to the regulatory and statutory provisions of the PKSO and pursuant to the BVG in the PKSO;

b) the takeover of the assets and liabilities of the occupational benefits of the government council members according to the balance sheet as of December 31, 2015, all known and unknown pension obligations as of December 31, 2015, which arise from the Government Council Pension Ordinance, including the associated contingent performance obligations, as well as all contingent performance obligations from which an obligation arises for the occupational benefits of the government council members based on the Government Council Pension Ordinance, by the PKSO.

1. For the transferring active members of the Government Council, the transfer of vested benefits according to the Government Council's pension plan shall occur as of January 1, 2016.

2. The vested benefits in accordance with paragraph 1 shall be increased by the amount necessary to ensure that the transferring members of the Government Council reach the anticipated same pension entitlement at the age of 65 as under the Government Council's pension plan. The anticipated pension entitlement with the PKSO is calculated on the basis of a projection interest rate of 1.7 percent. The anticipated pensions are calculated on the basis of the salary and coordination amount with the PKSO as of December 31, 2015.

1. The PKSO assumes all known and unknown pension obligations from the occupational pension scheme of the members of the Council of State as of December 31, 2015, which arise from the Pension Regulations of the Council of State, including the associated contingent benefit obligations, as well as all contingent benefit obligations, from which a benefit obligation arises for the occupational pension scheme of the members of the Council of State on the basis of the Pension Regulations of the Council of State.

2. The Canton ensures to the PKSO the fulfillment of the pension obligations assumed according to paragraph 1, as well as the future pensions resulting from the contingent benefit obligations assumed according to paragraph 1, by reimbursing the PKSO the paid pensions on the same day. A purchase of the pensions and the associated contingencies at the PKSO by the Canton does not take place.

3. The amount and entitlement conditions of the benefit obligations assumed according to paragraph 1 and secured according to paragraph 2 are determined by the Pension Regulations of the Council of State, which will be incorporated as an integral part of the connection and transfer agreement to be concluded.

4. The Canton must reimburse the PKSO for the administrative costs incurred due to the takeover and administration of the existing pensioners.

1. For insurance with the PKSO, the Federal Law on Occupational Old Age, Survivors’ and Invalidity Pension Provision (BVG) applies, and subject to paragraph 2, the statutory and regulatory provisions of the PKSO. In particular, the canton is responsible for the contributions according to the Law on the Pension Fund of the Canton of Solothurn as of September 28, 2014, and the active or former member of the Government Council who receives a temporary pension according to § 6 is responsible for the insured contributions according to the pension regulations of the Pension Fund of the Canton of Solothurn. The insured contributions are deducted from the salary or from the temporary pension.

2. The salary relevant for PKSO insurance of a former member of the Government Council receiving a temporary pension under § 6 corresponds to the pension under § 6, taking into account any reduction according to § 7. The relevant salary is insured with the PKSO, provided it exceeds the minimum salary required for compulsory insurance under the BVG. In this case, the insured salary of the former member of the Government Council with the PKSO corresponds to the relevant salary, meaning no coordination deduction is made.

1. The assets of the occupational pension provision for members of the Government Council as defined in § 10 as of December 31, 2015, shall be transferred to the PKSO.

2. The Canton shall make a purchase into the PKSO as of January 1, 2016, equivalent to the sum of the vested benefits according to § 11 paragraph 1 and the increases according to § 11 paragraph 2, insofar as these are not covered by the transferred assets pursuant to paragraph 1.

3. The Canton shall assume all costs and claims that arise after December 31, 2015, in relation to the pension scheme in existence up to that time. In particular, the Canton shall assume the costs of the dissolution and liquidation of the previous occupational pension provision for members of the Government Council.