Act on the Supervision of Occupational Pension Plans (BVG) and Foundations (G-BVSA) - Name, Legal Form, and Registered Office (G-BVSA)

1. The Aargau BVG and Foundation Supervisory Authority (BVSA) is an independent institution under public law.

2. The government council determines the location of the institution.

1. The BVSA is the supervisory authority responsible under federal legislation for

a) pension institutions and entities that serve the purpose of occupational pension provision, domiciled in the canton,

b) * foundations that, according to their provisions, belong to the Canton of Aargau or an Aargau municipality and are not active in the field of employee benefits.

1. Organs of the BVSA are

a) Board of Directors,

b) Executive Management,

c) Audit Office.

1. The Board of Directors is the highest governing body of the BVSA.

2. It consists of three to five members. The Government Council elects the President and the other members for a term of one year.

2bis Persons eligible for election must not have reached the age of 70 by the time they take office and must not have served on the Board for more than 16 years.

3. The Board of Directors is responsible for the strategic management of the institution and ensures the supervision of the executive management. In particular, it is tasked with

a) Electing the Managing Director,

b) Electing the Audit Office,

c) Adopting the budget and financial plan, as well as approving the annual accounts and the annual report,

d) Submitting the annual accounts and the annual report, along with an assessment of financial risk and the Audit Office's report, to the Government Council,

e) Issuing implementation provisions for the BVG and foundation supervision,

f) Issuing a fee schedule,

g) Issuing rules of procedure,

h) Issuing personnel regulations within the framework of cantonal personnel legislation,

i) Issuing regulations regarding the remuneration of the members of the Board of Directors.

4. The election of the Audit Office according to paragraph 3 letter b requires the approval of the Government Council.

1. The Managing Director of the BVSA

a) is responsible for the operational management,

b) generally participates in the meetings of the Board of Directors in an advisory capacity,

c) fulfills all other duties that are not assigned to any other body.

1. The Audit Office of the BVSA ensures the independent fulfillment of its duties.

2. It annually assesses whether

a) the annual financial statement complies with statutory regulations and recognized accounting principles,

b) an internal control system exists that accounts for the specific risks of the BVSA.

3. It submits a written report to the Board of Directors on the methodology and results of the audit and makes recommendations.

4. The term of office for the Audit Office is a maximum of three fiscal years. Re-election is possible in accordance with the provisions of the Federal Act on the Amendment of the Swiss Civil Code (Part Five: Code of Obligations) of March 30, 1911, for the ordinary audit.

1. Employees of the BVSA must be insured with a BVG institution that is not under their supervision.

1. For financing purposes, the canton provides the BVSA with an endowment capital of no more than CHF 2 million.

2. The BVSA bears interest on the endowment capital at the rate applicable to bonds of the cantons, based on the interest rate statistics of the Swiss National Bank, plus an administrative and risk margin of 0.5%.

3. The BVSA may repay the endowment capital in full or in part at any time.

1. The BVSA is operated on a cost-covering basis according to commercial principles.

2. For this purpose, it levies

a) annual supervision fees,

b) fees for individual examinations, decisions, and additional services.

3. The supervision fee is calculated based on the gross assets. A lump-sum surcharge is levied on pooled and joint facilities.

4. Fees for examinations, decisions, and services are calculated based on the effort required, within the framework set by the fee schedule.

5. The amount of the fees is determined in the fee schedule.

1. The fees incurred for the Federal Supervisory Commission are collected by the BVSA from the pension institutions in accordance with federal law regulations and are transferred to the Federal Supervisory Commission.

1. Any possible budget surplus is to be allocated to the reserves.

2. The reserves may not exceed the amount of an average annual turnover, which is calculated based on the two preceding fiscal years.

1. The BVSA has a budget and a financial plan, as well as financial and operational accounting.

2. The annual financial statements are prepared and structured in accordance with the principles of proper accounting. They include a balance sheet, an income statement, and notes.

1. The Government Council exercises oversight over the BVSA.

2. The decrees adopted by the Board of Directors are to be submitted to the Government Council for approval.

**1. In the area of supervision of pension institutions pursuant to the BVG, the BVSA fulfills all duties that, according to federal pension law, fall under the jurisdiction of the cantonal supervisory authority.**

1. The BVSA specifically reviews

a) Annual accounts and balance sheet,

b) Capital investments,

c) Benefits to beneficiaries,

d) Composition of the foundation's organs,

e) Foundation documents and regulations,

f) Liquidation.

2. In its review pursuant to paragraph 1, it limits itself to a legal examination. Abuse of discretion and excess of discretion are considered legal violations.

3. It takes the necessary measures to rectify identified deficiencies if the foundation's organs do not act within the scope of proper discretion.

4. It may alter the organization or purpose of a foundation (Articles 85, 86, and 86a of the Swiss Civil Code) and decides on the dissolution of such foundations (Article 88 paragraph 1 of the Swiss Civil Code).

1. The law of the seat canton is applicable.

1. Appeals against decisions of the BVSA can be lodged with the Administrative Court, unless federal law prescribes another legal remedy.

1. The term of office for the board of directors elected based on the Transitional Ordinance on the Occupational Benefits Act and Foundation Supervision in the Canton of Aargau dated June 29, 2011, lasts until December 31, 2013.

1. The government council determines the date of entry into force.