Resolution of the Standing Commission on Employee Insurance (Group Insurance) (Gruppenversicherung) - Purpose

**1. The Canton of Appenzell Innerrhoden (hereinafter referred to as the "Canton") maintains, in addition to the cantonal insurance fund, a personnel insurance plan. The purpose of this plan is to insure its employees against the economic consequences of loss of income due to old age, disability, and death, in accordance with the following provisions.**

**2. The basis of this personnel insurance is a contract between the Canton as the policyholder and the Swiss Life Insurance and Pension Institution, Zurich (hereinafter referred to as the "Pension Institution"). The liability of the Canton from this decision of the Cantonal Executive Committee does not extend beyond that of the Pension Institution.**

1. Insured, subject to Paragraph 3 of this Article, are the employees of the canton who are already affiliated with the group insurance, as well as those who cannot be affiliated with the cantonal insurance fund for health reasons.

2. The conditions for admission to the insurance are governed by Article 3 of this resolution of the state commission.

3. Excluded from the insurance are

a) Persons who, upon the time they would be admitted to the insurance, have exceeded the age of 60 according to the tariff;

b) Persons who, at the time they would be admitted to the insurance, are in a position that has been terminated;

c) The employees of the cantonal equalization fund.

1. The Admission of Persons to be Insured into the Insurance shall occur, subject to paragraph 2 of this Article, without a medical examination or other health check, provided that the following conditions are met

a) Based on the statements in the insurance application (Art. 11 para. 2), particularly those concerning health, it must be possible to assume full work capacity;

b) Before admission to the insurance, the person to be insured must have worked continuously for at least three months, if they had interrupted work for more than three consecutive weeks within the last twelve months for health reasons. If these conditions are not met, a risk assessment will be conducted by the Pension Fund based on its issued directives.

2. For persons for whom the initial risk sum exceeds CHF 30,000, admission to the insurance is contingent upon the result of a health assessment.

3. Based on the outcome of the risk assessment, the Pension Fund will decide whether and under what conditions admission to the insurance can occur.

1. The general insurance benefits consist of

a) a retirement capital, which becomes due upon reaching the terminal age;

b) a death benefit, which is payable if the insured person dies before the retirement capital is due;

c) a disability pension corresponding to the degree of disability, in the event of disability occurring before the terminal age. The disability pension is granted after the disability has lasted continuously for six months and as long as the disability persists, but no later than until reaching the terminal age. A degree of disability of less than one-quarter of working capacity does not entitle one to the disability pension; on the other hand, the full pension is granted if the degree of disability is at least 75%.

2. Additionally, for married men, as well as for widowed and divorced men with children under 20 years of age, coverage includes

a) an education pension corresponding to the degree of disability, for each child under 20 years old of an insured person with a disability, payable as long as the disability pension is running, but no later than until the child reaches the age of 20;

b) an orphan's pension for each child of the insured who is under 20 years of age at the time of the insured's death. The orphan's pension begins if the insured dies before the terminal age and is paid until the child's death, but no later than the completion of the child's 20th year of age.

3. The terminal age is considered to be the tariff age of 65 years.

4. All pensions are paid in advance in quarterly installments. The pension due dates are January 1st, April 1st, July 1st, and October 1st.

1. The amount of insurance benefits pursuant to Article 4, paragraph 1, is determined individually for each insured person based on their tariff age at the time of concluding the insurance and an annual premium of 25% of the insured salary (Article 10).

2. The insured death benefit is equal to the insured retirement capital.

3. The insured annual disability pension amounts to 10% of the insured retirement capital in the case of full disability.

4. The insured educational pension amounts annually to 5% of the insured salary per child in the case of full disability. It is paid for a maximum of five children of the relevant insured person.

5. The insured annual orphan's pension amounts to 5% for each half-orphan and 10% for each full orphan of the insured salary.

6. Any existing savings balance may be used as a single deposit to increase the insurance benefits pursuant to paragraphs 1-3 of this article. These single deposits are considered personal contributions of the insured as per Article 7, paragraph 2, and Article 14.

7. The amount of the insured retirement capital is evident from the certificate provided to each insured person.

8. Insured individuals who, as of January 1, 1972, are not affiliated with the cantonal insurance fund but with group insurance, will receive, from the age of 65, an annual pension of 35% of the AHV pension (status as of January 1, 1972), provided the conversion of the capital payout to an annuity results in a disadvantage of at least 25% compared to the corresponding pension of the cantonal insurance fund. The same applies to the survivors of the insured individuals.

9. Contributions from additional cantonal supplementary benefits will be credited to this pension.

10. AHV increases after January 1, 1972, do not lead to an increase in the 35% supplementary pension according to paragraph 8. If necessary, the percentage must be reduced to the extent that the supplementary pension corresponds again to 35% as of January 1, 1972.

Example

AHV Pension 1.1.1972 = CHF 400.--

Supplementary Pension 35% = CHF 140.--

AHV Pension 1.1.1973 = CHF 400.--

Supplementary Pension 35% of CHF 400.-- or 17½% of CHF 800.-- = CHF 140.--

1. If the insured salary increases or decreases (Art. 10 para. 3), the insurance benefits pursuant to Art. 4 para. 1 shall be increased or reduced by an amount corresponding to an annual premium of 25% of the difference between the new and the previous insured salary and the rate age of the insured person applicable at the relevant time. At the same time, if survivor’s and orphan’s pensions are insured for the insured person concerned, the annual survivor's pension shall be set at 5% of the new insured salary, and the annual half-orphan or full orphan's pension shall be set at 5% or 10% of the new insured salary, respectively.

2. If an insured person is unable to work fully at the time an increase in insurance benefits due to a salary increase should occur, for health reasons, the increase in insurance benefits shall be postponed until after the lapse of one month, calculated from the resumption of work in full.

1. The retirement capital, the death benefit, or the compensation according to Art. 14 para. 4 may be paid to the insured person or the entitled beneficiaries in a lump sum, in installments, or in the form of annuities (life annuities or temporary annuities).

2. The insured persons or their entitled beneficiaries have the right to determine the method of payment for the portion of the insurance benefits corresponding to the insured's contributions. If there is a risk that the beneficiaries, through wastefulness, alcoholism, immoral lifestyle, or through their management of assets, expose themselves or their family to the danger of hardship or impoverishment, the professional commission may determine the method of payment for the remaining portion of the insurance benefits. However, for the establishment of a life annuity without refund, the written consent of the entitled persons is required.

3. The payment in installments or in the form of annuities must not reduce the total benefits of the canton, including interest; on the other hand, the beneficiaries have no further claims against the canton after the full payment of insurance benefits in a lump sum or in installments or after their conversion into an annuity.

4. If an insurance sum has not been fully paid at the time of the entitled person's death and there are no legal or testamentary heirs, the remaining unpaid balance shall revert to the personnel welfare institution of the canton.

1. The tariff age is defined as the age reached on January 1st of a given year, rounded down or up to the nearest whole year, in such a way that fractions of half a year or less are disregarded, and fractions of more than half a year are counted as a whole year.

1. For the purposes of this decision by the Standing Commission, a service year is defined as the period from January 1 of a particular year to the following December 31 spent in the service of the canton. If the commencement of service occurred more than six months before January 1, the period from the date of commencement of service to the next December 31 is counted as a full service year. Apprenticeship years are not considered for insurance purposes. If the service relationship has been interrupted, the interruption is deducted; the effective service time determined in this manner is rounded down or up to whole years according to the rounding rule of Article 8.

1. The insured salary is considered to be the basic salary, including function and training allowances as well as cost-of-living adjustments, but excluding family and child allowances and the 13th month's salary, after the deduction of an AHV coordination deduction, which is determined by the commission.

2. Upon admission to the insurance, the insured remuneration is the annual remuneration calculated for the corresponding time according to paragraph 1.

3. Changes to the annual remuneration according to Art. 43 of the salary ordinance are only considered for insurance every two years. If an insured person reaches the salary maximum before the end of a two-year period in accordance with Art. 40 of the salary ordinance, the new annual remuneration is considered as insured remuneration from the January 1st that coincides with or follows the attainment of the maximum.

4. Changes in the annual remuneration during the last five years preceding the terminal age are not considered.

1. All insurance policies are to be concluded on January 1st of each year, with the exception of educational and orphan's pension insurances, which are to be concluded upon the marriage of a male insured individual during the course of the insurance year.

2. For each person to be included in the insurance, an application must be prepared for the pension institution, which must be signed by both the canton and the person to be insured.

3. The pension institution pays the due insurance benefits to the canton, which in turn is responsible for disbursing the payments to the entitled beneficiaries. In cases of criminal actions, Article 60 of the Salary Ordinance applies accordingly.

4. Insured individuals are obliged to immediately inform the canton of any changes in civil status (marriage; dissolution of marriage; remarriage) occurring during the period of employment, so that the canton can take the necessary measures for the insurance arising from such changes. Widowed and divorced men must register their children under 20 years of age with the canton and report the death of such children to it. The insured must provide truthful information regarding their circumstances relevant to the insurance.

5. The canton disclaims any liability for the consequences arising from the breach of these notification and information obligations for the insurance claims of the individuals concerned and their survivors.

1. The contributions of the insured to the group insurance amount to 10%, and those of the employer amount to 15% of the insured salary according to Art. 10 para. 1.

2. The Canton undertakes the payment of premiums to the pension institution. The contributions of the insured are deducted by the Canton in equal installments from the salary payments.

3. The obligation to contribute begins with enrollment in the insurance and lasts until the death of the insured person, but at most until the retirement age. If an insured person becomes disabled before this, their contribution is reduced proportionally to the loss of earning capacity. In the case of total disability, no further contributions are required. A reduction in earning capacity of less than one quarter does not entitle one to a reduction in contributions; conversely, if there is a disability degree of at least 75%, no further contributions need to be made.

4. The surpluses refunded by the pension institution are invested with interest and used every five years as a single deposit to generally increase the insurance benefits in accordance with Art. 4 para. 1 for all insured individuals. The annual premium for the education and orphan's pension insurance is advanced by the Canton, which in turn offsets the expenses incurred with the surpluses refunded by the pension institution.

1. **Death of an Insured Person Before Withdrawal from Service**

If an insured person dies before withdrawal from service, their survivors are entitled to the death benefit insured under Art. 5, subject to the provisions of Art. 7, in the following order of precedence and to the following extent

1. Spouses, descendants, parents, siblings, and also individuals who were regularly supported by the insured, are entitled to the full death benefit;

2. The remaining heirs of the insured person are entitled to the portion of the death benefit corresponding to the insured person’s contribution.

2. **Payment of the Death Benefit**

The death benefit will be paid out as soon as the following documents are provided by the entitled parties

a) An official death certificate;

b) A medical report on the cause of death.

3. **Unpaid Portions of the Death Benefit**

Parts of the death benefit that are not paid out will revert to the staff welfare institution.

1. If a policyholder’s employment with the canton is terminated before reaching the retirement age, the departing employee is entitled to a cash settlement amounting to the sum of their contributions, exclusive of interest.

2. If the termination of the employment relationship occurs after more than five years of service, the departing individual, provided the exit is carried out in compliance with regulations, is additionally entitled to a portion of the redemption value remaining to the canton, after deducting the contribution sum (paragraph 1), in the following proportions

Years of Service Completed / Share of the Remaining Redemption Value

5 years or less: --

6 years: 10%

7 years: 20%

8 years: 30%

9 years: 40%

10 years: 50%

11 years: 60%

12 years: 70%

13 years: 80%

14 years: 90%

15 years or more: 100%

3. Instead of the cash settlement due to them under paragraphs 1 or 2 of this article, the insured person has the option to request the transfer of a portion of their insurance for continuation at their own expense. The portion of the insurance to be transferred is determined so that at the time of transfer, the coverage capital is equal to the cash settlement owed to the departing employee.

4. Regardless of the number of years of service completed, an insured person has the right to transfer the entire insurance or receive a settlement amount equivalent to the full redemption value of their insurance reimbursed to the canton by the pension institution,

a) if they leave service prematurely within the last five years before retirement due to age considerations;

b) in the event of non-re-election without fault;

c) Compliance with legal provisions concerning portability remains reserved.

1. Any person who has left the service of the Canton and received a settlement according to Article 14 shall, in the event of re-entry, be treated as a newly entering person.

1. Any insurance claims falling under this regulation may neither be assigned nor pledged to third parties.

1. Surrender Values and Insurance Benefits that, for any reason, are not payable to the insured or their beneficiaries, shall accrue to the personnel welfare institution of the canton.

1. The medical certificates required for establishing claims under disability insurance must be issued by a physician chosen in agreement with the canton and the pension institution.

**1. This Resolution of the Professional Commission shall enter into force retroactively on January 1, 1973, and shall be handed to each person upon their admission to the insurance.**

2. Disputes arising from the interpretation or application of this Resolution of the Professional Commission shall be determined by the ordinary judge.

3. This Resolution of the Professional Commission may be amended by the Professional Commission at any time with the consent of the insured, subject to changes in the Salary Regulations. However, the coverage capital accrued for the individual insured up to the day of the amendment must continue to be used for their insurance. Claims that have already arisen due to resignation from service, disability, or death of the beneficiaries shall no longer be affected by any amendment to this Resolution of the Professional Commission.