Decree on the Aargau Pension Fund (Pensionskassendekret) - Status

1. The Aargau Pension Fund (APK) is an autonomous public law institution with its own legal personality within the meaning of Article 48, paragraph 2 of the Federal Act on Occupational Old Age, Survivors' and Disability Pension Plans (BVG) of June 25, 1982.

2. The APK is headquartered in Aarau.

3. The APK is managed by the funded system. It maintains its accounts as a closed fund (Article 65 BVG).

1. APC insures, within the framework of federal law provisions, the members of the Executive Council who have commenced their term after December 31, 2016, the members of the Higher Court, the employees, civil servants of the canton and its autonomous institutions, as well as the employees of the municipalities whose salary is directly paid by the canton, against the economic consequences of old age, death, and disability.

2. APC may, in consultation with the Executive Council, exempt specific employee groups from the obligation to join if they are insured by another pension fund within the framework of federal law provisions.

3. APC may, with a written affiliation agreement, accept additional employers for the insurance of their personnel.

1. The APK is, within the framework of this decree and the federal legal provisions, free in the design of its services and their financing, as well as in its organization.

1. The APK shall establish the core plan, taking into account the cornerstones contained in Sections 5-11, for the members of the government council who have assumed office after December 31, 2016, the members of the supreme court, employees, civil servants of the canton, and the employees of the municipalities whose salaries are paid directly by the canton.

2. For individual personnel groups, the APK may provide additional plans upon request.

3. For autonomous institutions and affiliated employers, pension plans deviating from the core plan may be established within the framework of federal legal provisions.

1. The insured salary in the APK corresponds to the reckonable annual salary reduced by a coordination deduction.

2. The reckonable annual salary is defined as the AHV annual salary in accordance with Article 5, Paragraph 2 of the Federal Act on Old-Age and Survivors' Insurance (AHVG) of December 20, 1946, reduced by salary components that occur only occasionally.

3. The coordination deduction amounts to 25% of the reckonable annual salary, but no more than 87.5% of the maximum old-age pension in accordance with Article 34, Paragraph 3 of the AHVG.

1. The standard retirement age is 65 years.

2. Retirement may also occur before or after reaching the standard retirement age, as well as in partial steps.

1. For the insured individuals, an individual savings account is formed with contributions, savings credits, and interest, which is converted into a retirement pension at the time of retirement.

2. Without voluntary savings contributions from employees, the annual savings credits are as follows

Age | Savings Credits as a % of Pensionable Salary

20-24 * | 8.0 *

25-34 | 16.5 *

35-39 | 18.5 *

40-44 | 20.5 *

45-49 | 22.5 *

50-54 | 24.5 *

55-65 | 26.5 *

66-70 * | 8.0

3. ...

1. The old-age pension is calculated in accordance with Art. 14 para. 1 of the Swiss Federal Act on Occupational Retirement, Survivors' and Disability Pension Plans (BVG) as a percentage of the retirement savings capital (conversion rate) that the insured have accumulated at the time of retirement.

2. ...

1bis. Death benefits payable to survivors and beneficiaries of an insured person shall, in total, at least equal the savings accumulated at the time of death.

1. The concept of disability is defined according to the provisions of the Federal Act on Invalidity Insurance (IVG) of June 19, 1959.

2. The full disability pension amounts to 65% of the insured salary. It is recalculated as a disability pension at the end of the month following the completion of the 65th year of age, based on the savings balance which is continued for disability pensioners based on the last insured salary.

3. ...

1. The savings credits, the death and disability benefits are financed by contributions from the canton and the insured. The canton's share amounts to approximately 60% of the total contributions.

2. ...

3. For additional plans according to § 4 paragraph 2, a different share for the employers may be determined.

1. In the event of an underfunding, the following recovery contributions, in addition to the credit balances according to § 7, may be levied on the insured salaries

a) a maximum of 4%, if the funding ratio is less than 100% but at least 95%,

b) a maximum of 10%, if the funding ratio is less than 95%.

2. The recovery is financed by contributions from the canton and the insured individuals. The canton's share amounts to approximately 50% of the total contributions.

3. If the interest on retirement assets is below the BVG minimum interest rate, the difference shall be credited towards the recovery costs of the actively insured.

4. Recovery contributions from pensioners may be levied under the conditions of Art. 65d para. 3 lit. b BVG. If a contribution is levied from pensioners to remedy an underfunding, the share borne by the actively insured is reduced by the same amount.

1. The bodies of the APK are the Board of Directors, the Executive Management, and the Audit Office.

a) * ...

b) * ...

c) * ...

1. The Board is the supreme body of the APK, composed equally, and it assumes the overall management of the APK pursuant to Art. 51a BVG.

1bis

It consists of a maximum of 10 members, half of whom are elected by the Executive Council. The Executive Council elects the five representatives of the employers. The Board determines an appropriate procedure for the election of five representatives of the employees. The Board organizes itself independently.

1ter

It regulates the organization of the APK in accordance with federal legal provisions in the organizational regulations.

2. ...

3. The term of office is four years.

4. ...

1. The management is appointed by the board of directors. The responsibilities and competencies of the management are determined by the board of directors.

1. The auditor and the expert for occupational pension plans are appointed by the board and fulfill their duties in accordance with federal legislation as well as professionally recognized principles and guidelines.

2. ...

7. With the repeal of the provisions regarding the Employer Contribution Reserve (AGBR) for securing the Fluctuation Reserve, the existing AGBR shall first be used to address any potential underfunding and then for the allocation of the Fluctuation Reserve.

1. Ongoing pensions will continue to be paid in accordance with the previous insurance terms and conditions of the APK.

2. The entitlement to a spousal pension and to orphan's pensions upon the death of a pensioner is determined by the previous insurance terms and conditions of the APK.

3. ...

1. This Decree shall be published in the official register of laws. The government council shall determine the date of its entry into force.

1. The following are repealed

a) the Decree concerning the Regulation of Relations between the State and the Aargau Pension Fund for Civil Servants dated October 28, 1924,

b) § 6 of the Decree concerning the Transfer of the Personnel Pension Scheme for Teachers at Public Schools to the Aargau Pension Fund (Transfer Decree) dated May 13, 2003,

c) the Decree concerning Cost-of-Living Allowances for State Pension Recipients dated November 30, 1964.