Kanton Glarus

Name, Registration and Domicile

1 Under the name "Glarner Pensionskasse," a public-law foundation within the meaning of Article 48 paragraph 2 BVG is established. *

2 The foundation is registered in the Commercial Register and it shall be registered in the Register for Occupational Pensions of the Canton of Glarus.

3 The foundation has its domicile in Glarus.

Purpose

1. The Foundation provides occupational benefits within the framework of federal law for the members of the authorities, the personnel of the cantonal administration and cantonal institutions, Glarus social insurances, and for teachers employed by the canton and at vocational schools and special schools recognized by the canton. The Foundation aims to provide occupational benefit protection for its insured persons and their dependents against the economic consequences of old age, death, and disability.

2. The benefits shall at least correspond to those of the BVG (Federal Act on Occupational Retirement, Survivors' and Disability Pension Plans) and other provisions of federal law.

3. The Board of Trustees shall issue regulations concerning the benefits, the financing and control of the Foundation, as well as its organization and administration. The regulations may be amended while preserving the acquired rights of the beneficiaries. The regulations and their amendments must be submitted to the supervisory authority.

4. The Board of Trustees may contractually agree with other public or private law institutions performing public functions to affiliate their personnel. Affiliation agreements must be communicated to the supervisory authority.

5. To achieve its purpose, the Foundation may conclude insurance contracts or enter into existing contracts, provided that it itself is the policyholder and beneficiary.

Assets

1 The Canton of Glarus dedicates an initial capital of CHF 10,000 to the

Foundation. Furthermore, the Foundation assumes the assets and liabilities

of the former "Pensionskasse des Kantons Glarus" (Pension Fund of the

Canton of Glarus) and the "Lehrerversicherungskasse des Kantons Glarus"

(Teachers' Insurance Fund of the Canton of Glarus).

2 The Foundation's assets are further constituted by regulatory contributions

from employers and insured persons, voluntary contributions from employers

and third parties, and income from assets.

SBE IX/4 246

1

II D/2/1

3 The Foundation's assets may only be used for pension purposes. Excluded

are benefits to which employers are legally obligated or which they

customarily pay as remuneration for services rendered, such as cost-of-living

allowances, child allowances, gratuities, etc.

4 The Foundation's assets must be managed in accordance with recognized

principles, observing federal law provisions.

5 Employer contributions may be made from contribution reserves previously

established by them.

Principle of Full Capitalization

1 The foundation is managed according to the principle of full capitalization.

2-3

Board of Trustees

1 The supreme body of the Foundation is the Board of Trustees.

2 The Board of Trustees consists of 8 to 16 members, with half of them being appointed by the insured persons and half by the employers. The number of members and the details of the parity-based administration are defined in a regulation. The Board of Trustees may also include persons who are not eligible to vote in the canton.

3 The Board of Trustees may form committees or commissions and grant them the authority to regulate and supervise the execution of its resolutions.

4 The term of office is four years and is aligned with the term of office of public officials according to the Cantonal Constitution. For representatives of the insured persons, membership ends upon leaving the service of the employer. In the case of old-age retirement, a member may remain on the Board of Trustees until the expiry of their term of office, provided they are still receiving benefits from the pension fund.

5 The Board of Trustees represents the Foundation externally, designates the persons who legally bind the Foundation, and determines the signatory powers.

6 The Board of Trustees manages the Foundation in accordance with federal law, the provisions of the Foundation Deed and the regulations, as well as the directives of the supervisory authority.

Control

1 The Foundation Board elects an external, licensed auditing body for the annual

review of the foundation in accordance with the relevant federal legal

provisions (Art. 52c BVG).

2 The Foundation Board elects a licensed expert for occupational pensions for the periodic review of the foundation

pursuant to Article 52e BVG.

Amendment of the Foundation Charter

1 The Foundation Board is responsible for amending the Foundation Charter.

Succession, Dissolution, and Liquidation

1 In the event of the dissolution of the foundation, the foundation assets are to be used primarily

to secure the statutory and regulatory claims of the

beneficiaries. Any surplus is to be used within the scope of the foundation's

purpose. The liquidation shall be carried out by the last Board of Trustees,

who shall remain in office until it is completed.

2 The regulations shall, within the framework of federal law, govern the withdrawal of

affiliated institutions and other cases of partial liquidation.

3 The use of foundation assets for purposes other than occupational old-age, survivors', and disability insurance

is excluded.

Entry into Force

1 This Ordinance comes into force on July 1, 2005.

3

II D/2/1