1 State - People - Authorities - 15 Authorities - 152 Council of State and Cantonal Administration

**1. This Law Establishes a Professional Provident Scheme for Members of the Council of State of the Republic and Canton of Neuchâtel**

This Law defines a professional provident scheme in favor of the members of the Council of State of the Republic and Canton of Neuchâtel, who are not otherwise subject to federal legislation on professional provident schemes.

The established regime aims to provide protection for the members of the Council of State and their families against the economic consequences of retirement, death, and disability.

A contribution amounting to 9% of the gross salary (excluding any allowances) is charged to the members of the Council of State and is deducted monthly from their salary for as long as they are in office.

Contributions are recorded as revenue under the chapter "Occupational Pension Provisions for Members of the Council of State" in the State's operating account.

1 Members of the Council of State who leave office due to resignation or non-reelection may be entitled to receive

a) a full and lifetime retirement pension if they have served at least four complete years and are aged 50 or over at the time they leave office (Art. 7);

b) a limited retirement pension if they have served at least four complete years and are over 40 years old but under 50 years old at the time they leave office (Art. 8).

2. Members of the Council of State who leave with less than four complete years of service or are under 40 years old are not entitled to any retirement pension. They are granted a salary indemnity in accordance with Article 17.

1. After four full years of service, the pension equals 26% of the gross salary, excluding any possible allowances, of the member of the Council of State.

2. The pension is increased by an amount equal to 3% of the gross salary for each additional complete year served in the position of Councilor of State.

3. The pension cannot exceed 50% of the gross salary.

4. The right to the pension is established on the day following the last day the salary was paid.

1. Members of the State Council leaving office after at least four complete years of service and who are over the age of 40 but under the age of 50, are entitled to a pension calculated in accordance with Article 6.

2. The pension is paid for a number of months equal to the number of months spent in the position.

3. At the age of 62, the former member of the State Council regains their right to the pension, which is then paid as a lifetime annuity.

4. A member of the State Council may, upon agreeing to a reduction in their pension, request that it be paid without interruption until the pension entitlement is reinstated at the age of 62. The pension is then calculated as follows

Amount of the pension

monthly pension amount X number of months due

1 Members of the Council of State who leave office after at least four complete years of service and are aged 50 years or older are entitled to a retirement pension calculated in accordance with Article 6. The pension is paid for life.

1. Members of the Council of State retiring due to total disability are entitled to a pension calculated in accordance with Article 6.

2. The disability pension, however, is at least equal to 26% of the salary during the first four years of service.

Members of the Council of State retiring due to partial disability are entitled to a pension calculated in accordance with Article 9 and proportional to the degree of disability.

Upon the death of a serving or retired member of the Council of State, the surviving spouse or registered partner, as defined by the Federal Partnership Act, is entitled to a pension equal to 70% of the pension calculated in accordance with Article 6, paragraphs 1 to 3, but at a minimum of 26% of the insured salary.

1 Upon the death of a sitting or retired member of the Council of State, the person who cohabitated with said member in an uninterrupted communal life for at least five years immediately prior to their death, or who is responsible for the maintenance of one or more of their common children, is entitled to a pension equal to 70% of the pension calculated in accordance with Article 6, paragraphs 1 to 3, but with a minimum of 26% of the insured salary.

1. When a member of the Council of State is granted a disability or retirement pension, they are entitled to a child's pension for each of their children.

2. When an insured person passes away, each of their children is entitled to a child's pension.

3. Considered as a child of an insured person is

a) A child whose affiliation results from birth or adoption, or has been established by marriage, recognition, or judgment;

b) A child for whose maintenance the insured person contributes or was contributing at the time of their death, either entirely or predominantly.

1. The right to a child's pension arises on the day when the payment of the disability or retirement pension begins, or on the 1st of the month following the insured person's death, but at the earliest as soon as the entitlement to salary ends, and it ceases at the end of the month in which the child reaches the age of 18.

2. For children considered to be in education according to the directives on AHV pensions or who are at least 70% disabled, the right to a child's pension ceases at the end of the studies, apprenticeship, or disability, but at the latest at the end of the month in which they reach the age of 25.

3. When a child beneficiary of pensions deceases, the right to a child's pension ceases at the end of the month of death.

1. The annual amount of the children's pension is equal to

a) if the insured is disabled or retired: 20% of the insured disability pension;

b) if the deceased was active or disabled: 20% of the disability pension the deceased would have received or was receiving at the time of death;

c) if the deceased was retired: 20% of the retirement pension the deceased was receiving.

2. The amount of the children's disability pension is maintained on the day the insured parent reaches the standard retirement age.

The benefits provided under the execution of this law are indexed to the evolution of the Swiss consumer price index to the same extent as is annually decided by the Single Pension Fund for Neuchâtel's Public Service.

Members of the outgoing Council of State who do not receive a retirement or disability pension are entitled to a salary indemnity corresponding to two months of salary for each year of service. A started year counts as a full year.

Upon the death of a member of the Council of State, the surviving spouse, registered partner, or cohabitant as defined in Articles 11 and 12 shall receive the salary for 4 months if the Councilor of State was still active, or the retirement or disability pension for 2 months if the Councilor of State was receiving such a pension.

[1] 1 The annuities paid under the execution of the present law are reduced insofar as the total income from professional activities, annuities, and pensions as stated in the tax assessment exceeds the amount of 236,711 francs (value 2013), or 60% of this amount if the beneficiary of the annuity is an orphan, a surviving spouse, a registered partner under the federal law on partnership, or a cohabitant without any dependent children.

2. In the event of the deferral of the AVS pension, an amount equal to the maximum individual old-age pension is added to the income defined by the preceding paragraph as soon as the pensioner reaches the standard AVS retirement age.

1 The benefit scheme established by this law is managed by a state service designated by the Council of State.

2. The expenses resulting from its application are borne by the state through its operating account.

1. The Cantonal Court shall have sole jurisdiction over disputes concerning the application of this law.

2. The procedure is governed by the Law on Administrative Procedure and Jurisdiction, dated June 27, 1979 [2].

[3] 1 The pensions of the members of the Council of State serving prior to the entry into force of this law are determined in accordance with the law instituting pensions for the members of the Council of State and their families, dated May 20, 1987 [4].

2. This law does not apply to the members of the Council of State who took office after the entry into force of the law amending the law on the organization of the Council of State and Cantonal Administration (LCE), dated October 1, 2024 [5].

Law Establishing Pensions for Members of the Council of State and Their Families, May 20, 1987, is Repealed

The law establishing pensions in favor of members of the Council of State and their families, dated May 20, 1987, is repealed as of the entry into force of this present law and the balance of the Pension Fund for the members of the Council of State and their families is paid to the State.

This Act shall enter into force with effect from January 1, 2011.

1. This law is subject to an optional referendum.

2. The Council of State shall provide for its promulgation and execution if necessary.

Law promulgated by the Council of State on December 15, 2010.