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1. The Cantonal Insurance Fund of Appenzell I.Rh. is an autonomous institution under cantonal public law. It is headquartered in Appenzell.

2. The insurance fund insures its members in accordance with the Federal Act on Occupational Old Age, Survivors' and Disability Pension Plans.

1. The organs of the insurance fund are the Board of Administration and the Executive Management.

1. The Administrative Commission is the supreme body of the insurance fund.

2. The Administrative Commission consists of three employee representatives elected by the insured employees and three employer representatives elected by the Professional Commission. The Administrative Commission regulates the election of employee representatives; it can establish operational electoral districts.

3. The term of office for members of the Administrative Commission is four years. Re-election is permissible.

4. The Administrative Commission constitutes itself.

1. The Administrative Commission is responsible for the overall management of the insurance fund within the framework of legal regulations and instructions from supervisory authorities.

2. It issues the necessary regulations for the implementation of the pension scheme, in particular the pension, investment, reserve, partial liquidation, and organizational regulations.

3. It appoints or elects the executive management and forms the necessary committees.

4. It may transfer the administration, in whole or in part, to third parties.

1. The ongoing business is managed by the executive management under the supervision of the management commission.

2. The executive management periodically informs the management commission about the course of business and promptly about all special occurrences.

3. The executive manager attends the meetings of the management commission with an advisory vote.

1. Membership in the Insurance Fund is mandatory for employees

a) of the cantonal administration, including dependent institutions;

b) of the cantonal compensation fund, the family compensation fund, and the unemployment fund;

c) of the Appenzell Cantonal Bank;

d) of corporations, institutions, and enterprises affiliated by law.

2. The Insurance Fund may, based on contractual agreements, insure employees and members of authorities from

a) public-law corporations and institutions of the canton;

b) institutions based in the canton that fulfill a task that would otherwise be carried out by the public sector;

c) institutions and enterprises that have a connection to the canton.

1. The insured annual salary corresponds to the part of the relevant annual salary that exceeds the coordination amount. The insured annual salary is capped at seven times the amount of the maximum AHV retirement pension.

2. The Administrative Commission regulates which components of the salary are considered relevant.

3. The coordination amount corresponds to one-third of the relevant annual salary per employment relationship, but not exceeding 87.5% of the maximum AHV retirement pension. For members of the Professional Commission, the coordination amount is waived.

4. The insurance obligation applies to annual salaries starting from 50% of the maximum AHV retirement pension.

1. The insurance fund does not carry out voluntary insurances for part-time employees for the portion of their wages earned from other employers.

2. Members of the professional commission are exempted from this regulation.

3. Further exceptions can be determined by the administration commission based on objective criteria, whereby in these additional cases, the consent of the affected employer is always required.

1. The retirement benefits are financed with the savings contributions.

2. Upon the request of the Administrative Commission, the Standing Commission shall determine the savings contributions as a percentage of the insured annual salary within the following ranges

Age (years) | Employer Savings Contribution | Employee Savings Contribution

20-22 | 0% - 5% | 0% - 5%

23-29 | 4% - 6% | 4% - 6%

30-34 | 5.5% - 7.5% | 4.5% - 6.5%

35-39 | 7.5% - 9.5% | 5.5% - 7.5%

40-44 | 9.5% - 11.5% | 6.5% - 8.5%

45-49 | 10.5% - 12.5% | 7.5% - 9.5%

50-54 | 12.5% - 14.5% | 7.5% - 9.5%

55-59 | 13.0% - 15.0% | 8.5% - 10.5%

60-65 | 14.0% - 16.0% | 9.0% - 11.0%

66-70 | 0% - 5% | 0% - 5%

3. The Insurance Fund may allow employers and employees to have different savings contributions. For contractually affiliated businesses, the affiliation agreement regulates the details. Deviating savings contributions require the approval of the Standing Commission, or if it is affected, the approval of the Grand Council.

4. The savings contributions of the employee and the employer are fully credited to the individual savings account.

5. The additional contributions are used to finance

a) the risk of death, disability, and longevity,

b) the contributions to the security fund,

c) the administrative and other costs.

6. The amount of the additional contributions is determined according to actuarial principles and experience values. They are set by the Standing Commission upon the request of the Administrative Commission. The additional contributions are financed equally by the employee and employer and amount to a total of no more than 5% of the insured annual salary.

7. Employers of employees pursuant to Art. 6 para. 1 shall contribute a maximum of 60% of the total savings and additional contributions.

1. The insurance fund applies the principle of full capitalization.

2. In the event of a shortfall, the management committee develops a recovery plan to address the shortfall within a reasonable time frame. It fulfills the information obligations in accordance with federal law, specifically ensuring that employers are timely informed about recovery contributions.

3. The management committee submits the recovery plan to the professional committee for acknowledgment. If recovery contributions from employers exceed 1.5% of the insured annual salary, approval from the professional committee must be obtained. In this case, the management committee submits a request to the professional committee no later than six months before the initial imposition of recovery contributions.

4. Employees and employers each participate equally in the measures to rectify the shortfall.

1. The administration commission regulates the pension benefits.

2. The retirement benefits are structured according to the defined contribution principle.

1. The current members of the Administrative Commission shall remain in office. The term of office for all members shall expire on December 31, 2014.

1. The Regulation on the Insurance Fund (VKV) of December 1, 1969, is repealed.

2. Article 37, Paragraph 3 of the Personnel Ordinance (PeV) of November 30, 1998, is repealed.

3. Article 6, Paragraph 2 of the Authorities Ordinance of June 15, 1998, is repealed.

4. Article 13 of the Ordinance on the Hospital and Nursing Home Appenzell (Hospital Ordinance) of June 23, 2003, is amended as follows

Art. 13 Employee Benefits

1 The personnel paid by the hospital are affiliated with the Cantonal Insurance Fund Appenzell I.Rh.

1. This Regulation shall enter into force on January 1, 2014.