Act on the Pension Fund Graubünden (PKG) - Name, Legal Form, Purpose (PKG)

1. The Graubünden Pension Fund (Pension Fund) is an independent public law institution of the Canton of Graubünden, based in Chur. It is registered in the Commercial Register of the Canton of Graubünden.

2. It provides its insured members and their survivors with protection against the economic consequences of old age, disability, and death.

1. The pension fund is subject to the supervision of the authority designated by the canton.

2. The annual financial statements and the business report must be submitted to the Grand Council each year for informational purposes.

1. The supreme body of the pension fund is the Administrative Committee. It consists of ten members. The five representatives of the employers are appointed by the government, with at least one seat allocated to the municipalities. The five representatives of the employees are elected by the employees.

2. The Administrative Committee assumes the overall management of the pension fund, ensures the fulfillment of legal tasks, determines the strategic objectives and principles of the pension fund, as well as the means to fulfill them. It sets the organization of the pension fund, ensures its financial stability, and monitors the management.

3. The Administrative Committee constitutes itself in accordance with the federal requirements for parity.

1. The Directorate is responsible for the operational management of the pension fund. Its tasks are determined by the directives of the Administrative Commission.

1. The principle of full capitalization applies to the pension fund.

2. The retirement benefits are calculated according to the defined contribution principle. The temporary disability benefits and survivors' benefits are determined as a percentage of the insured salary.

1. The Canton of Graubünden and its independent public law institutions are required to insure their employees with the pension fund.

2. The Graubünden Cantonal Bank, the municipalities, the municipal associations, and other institutions with predominantly public functions may be contractually affiliated.

3. ...

4. The management commission determines which employees are to be insured.

1. The insured amount is the annual AHV salary reduced by a coordination deduction. The coordination deduction amounts to 25 percent of the annual AHV salary, but no more than seven-eighths of the maximum annual AHV retirement pension. The maximum deduction is reduced according to the degree of employment. The entry threshold is at the BVG minimum wage.

2. The annual salary relevant for determining the insured salary corresponds to the expected annual base salary, including the 13th month's salary. Occasionally accruing salary components, social allowances, and variable or temporary allowances are not insured.

3. The maximum insurable salary corresponds to the maximum annual salary according to the cantonal salary scale, minus the coordination deduction. For part-time employees, the maximum insured salary is reduced according to the degree of employment.

1. The savings contributions are staggered based on age and amount to the following percentages of the insured salary under the standard contribution plan

| Age | Savings Contributions |

| --- | --- |

| 20-24 | 14.0 |

| 25-29 | 15.0 |

| 30-34 | 17.0 |

| 35-39 | 19.0 |

| 40-44 | 22.0 |

| 45-49 | 25.0 |

| 50 and older | 27.5 |

2. The management commission determines the risk contributions according to recognized technical foundations.

3. Employers are required to cover at least half of the contributions.

1. Insurance benefits are determined by the Administrative Commission.

1. The Administration Commission may issue new pension plans.

1. Members of the judicial authorities are insured with the pension fund for occupational benefits until reaching the age of 65.

2. After reaching the age of 65, the retirement provision can be extended upon application by a member of a judicial authority until the statutory retirement age.

3. The annual savings contributions of the members of the Higher Court are increased by 25 percent at the end of each year at the expense of the canton. The surcharge is limited to the maximum contributions of the pension plan. In the event of mid-year departure or a benefit event, the surcharge is granted on a pro-rata basis.

4. Voluntary contributions under the canton’s pension plan with the highest purchase amount will be increased by ten percent, five years after the deposit, for the current member at the expense of the canton.

**1. The Management Commission decides on measures in the event of underfunding. The measures must be appropriate to the degree of underfunding and part of a balanced overall concept. They must be implementable within a reasonable timeframe and lead to the rectification of the underfunding within a suitable period.**

**2. In particular, rehabilitation contributions can be levied from the affiliated employers and the insured persons, and the BVG minimum interest rate for the interest on savings contributions can be undercut.**

**3. Employers are required to assume at least half of the rehabilitation contributions. The rehabilitation contributions do not count towards savings capital.**

1. The Canton guarantees indefinitely all pensions in force as of December 31, 2021. The group of pensioners existing at this time will be managed in a closed pension fund. To secure the ongoing pension payments, the Canton grants the pension fund interest-free and conditionally repayable loans for the closed pension fund. Granted loans are to be repaid to the extent that the coverage ratio exceeds 100 percent.

2. The government regulates the details in a contract with the pension fund.

1. The pension fund is not subject to public procurement regulations.

1. The right of appeal is governed by the Administrative Procedure Act.

1. Upon the entry into force of this Act, the Law on the Cantonal Pension Fund of Graubünden (PKG) of June 16, 2005, shall be repealed.

**1. Benefits Established Under the Old Law as of January 1, 2007, Remain Unchanged.** If the accumulated individual savings capital is not sufficient to finance these benefits, the Canton will assume their funding on a pay-as-you-go basis.

**2. Transfer of Individual Savings Balances of Full-Time Members of the Cantonal Judiciary.** The individual savings balances accumulated by full-time members of the Cantonal and Administrative Courts, in accordance with the Ordinance on Occupational Pensions for Full-Time Members of the Cantonal Courts dated October 2, 2000, will be transferred as vested benefits to the pension fund for the benefit of each member. The vested entitlement to their retirement pension remains preserved. Necessary increases in the savings balance to preserve the vested entitlement will be borne by the Canton.

**3. Options for Regularly Serving Members of the Cantonal and Administrative Courts Before the Enactment of New Law.** Regularly serving members of the Cantonal and Administrative Courts may choose, before the enactment of the new law, whether they wish to claim the special occupational pension benefits in accordance with Article 5 or Article 6 of the Act on Salaries and Occupational Pensions of Members of the Cantonal or Administrative Courts, or as per Article 11a, Paragraph 2 and Paragraph 3. If no declaration of choice is made or the new regulation is chosen, the savings balance will be increased at the expense of the Canton until the new law comes into force. The surcharge amounts to 2.5 percent for each completed year of service as a regular member of the Cantonal or Administrative Court, but not to exceed 15 percent.

1. This law is subject to an optional referendum.

2. The government determines the date of this law's entry into force.