CH-NE
1 State - People - Authorities - 15 Authorities - 152 Council of State and Cantonal Administration - CHAPTER 10 Final Provisions Transitional Provision to the Amendment of November 4, 2008 [40] Transitional Provisions to the Amendment of June 26, 2013 [41] (PKÖD-G)
Table of Provisions (50)
Statutory Text (50 Articles)
Upon the entry into force of this amendment and for a maximum period of three years, the State guarantees the benefits owed under this law
a) to the employees of all employers affiliated with the State Pension Fund as of December 31, 2009, except for the municipalities that guarantee the benefits owed to their employees;
b) to the employees of all new employers affiliated with the Fund from January 1, 2010, to December 31, 2011.
1. From January 1, 2014, to December 31, 2018, retirements at the age of 63 are guaranteed without any reduction rate deduction for early retirement applied to the acquired pension. The Board of Directors sets the terms for different retirement ages.
2. At the end of this five-year period, provided that the recapitalization path within the meaning of Article 72a of the LPP and Article 49 of this law meets the set objectives, the Board of Directors aims to extend the transitional measures for the period from January 1, 2019, to December 31, 2023.
3. The Board of Directors presents its decision on extending the transitional measures for the 2019-2023 period within its report on the verification of the long-term financial balance and compliance with the financing plan, as defined in Article 49a of this law.
1. As of January 1, 2014, the employers affiliated in the sense of Article 6 collectively pay the Fund a total amount of 270 million Swiss francs to sufficiently increase the Fund's total wealth, thereby enabling it to meet legal obligations and imperative changes, in particular by the Fund's creation of a fluctuation reserve to cope with future cyclical fluctuations in capital returns and thus avoid falling below the achieved coverage ratio.
2. The employers affiliated with the Fund in the sense of Article 6 as of January 1, 2014, are required to participate in a one-time contribution for the Fund's restructuring in the amount of 60 million Swiss francs, established at the value date of January 1, 2014, and subsequently indexed to the Swiss consumer price index. This participation is due from the Fund as of January 1, 2019, by decision of its Board of Directors and upon notification with a written six-month notice.
3. The amount of contributions from each employer is determined based on the circle of active and retired insured persons attached to the employer and their pension capital as of January 1, 2014.
4. Affiliated employers may agree on a different distribution of these contributions.
5. The Fund notifies employers by November 30, 2013, at the latest, of the amount of the advance due on January 1, 2014. The amount of the advance is calculated based on the workforce and pension capital as of January 1, 2013. The final amounts of participation based on the workforce and pension capital as of January 1, 2014, are notified to employers by June 30, 2014, at the latest. The positive balance must be paid to the Fund by July 31, 2014. In the case of a negative balance, this is reimbursed by the Fund on the same date. No interest will be charged from January 1, 2014, to July 31, 2014.
6. The amounts notified, in accordance with paragraphs 1 and 2, are deemed to be acknowledgment of debt, within the meaning of Article 82 of the Swiss Debt Enforcement and Bankruptcy Act (LP), of April 11, 1889. They may be subject to a loan from the Fund to the employer, remunerated at the technical rate. The terms of repayment are defined by contract between the parties.
7. The affiliated employers take the necessary measures to comply with these obligations.
The state's share in the amount of operations related to the payment according to Article 4, paragraph 4, as well as the fluctuation reserve and the provision as they result from paragraphs 1 and 2 of Article 3 of the transitional provisions, are not taken into account for determining the limits of indebtedness defined by the Finance Act, of October 21, 1980 [43].
The payment of interest on the single sanitation participation of 100 million francs, which the state is required to pay according to Article 4, paragraph 4, is suspended for the year 2016.
Upon the entry into force of this law, and for a maximum period of three years, the state guarantees the benefits owed under this law to employees of all employers affiliated with the State Pension Fund as of December 31, 2009.
[2] This law sets the framework for the organization and financing of the Pension Fund for Public Service of the Canton of Neuchâtel (hereinafter: the Fund).
1. As of January 1, 2019, an additional savings contribution of 1.0% of the contributory salary is collected to partially offset the effects of declining returns, charged to the employer and insured persons according to the distribution provided in Article 46, paragraph 1, for a period of five years.
2. The Fund shall submit, through the State Council, to the Grand Council, in its quinquennial report pursuant to Article 49a, paragraph 2, the trend in the average expected return.
3. The additional savings contribution of 1% is renewed in five-year periods by the Grand Council, as long as the trend in the average expected return requires it.
**1. To mitigate the effects of the change in priority, the Fund credits a compensatory amount to the savings capital of the insured individuals.**
2. The compensatory amount helps to ensure, in whole or in part, the projected retirement pension at the ordinary retirement age, according to the previous law, on the day preceding the entry into force of this law, assuming that an interest rate of 1.5% is credited annually on the savings capital of the insured individuals.
3. The compensatory amount is allocated based on the age of the insured (completed age) and applicable provisions, according to the following allocation rate applied to the insured’s savings capital as of January 1, 2019
| Age | Ordinary Provisions (art. 11, para. 1) | | Special Provisions (art. 11, para. 4) |
|-----|---------------------------------|-----|-------------------------------------|
| 61-53 years | 12% |
| 58-50 years | 12% |
| 52-51 years | 11% |
| 49-48 years | 11% |
| 50-46 years | 10% |
| 47-43 years | 10% |
| 45. years | 9% |
| 42. years | 9% |
| 44. years | 7% |
| 41. years | 7% |
| 43. years | 5% |
| 40. years | 5% |
| 42. years | 4% |
| 39. years | 4% |
4. For older active insured individuals on the date of the entry into force of this law, the projected retirement pension, according to the terms of paragraph 2, is guaranteed up to the following decreasing percentage, depending on the age of the insured (completed age)
| Age | Ordinary Provisions (art. 11, para. 1) | | Special Provisions (art. 11, para. 4) |
|-----|---------------------------------|-----|-------------------------------------|
| 64. years and above | 99% |
| 61. years and above | 99% |
| 63. years | 98% |
| 60. years | 98% |
| 62. years | 97% |
| 59. years | 97% |
5. The allocation is granted in one go on the day of the entry into force of this law. In application of Article 7 LFLP, the Fund will deduct the compensatory amount from the exit benefit. This deduction is reduced, per insurance year since the entry into force of this law, by one-tenth of the compensatory amount. The unused portion remains with the assets of the Fund.
1. On the date of entry into force of this amendment, the affiliated employers as defined in Article 6 shall collectively pay a total amount of 200 million francs to the Fund.
2. The amount of each employer's contribution is determined based on the group of active insured persons and pensioners linked to the employer and their pension capital as of January 1, 2017.
3. The Fund shall notify employers by no later than October 31, 2018, of the amount due on January 1, 2019.
4. The amounts notified, in accordance with paragraphs 1 to 3, constitute an acknowledgment of debt within the meaning of Article 82 of the Federal Act on Debt Collection and Bankruptcy (DCB), dated April 11, 1889. They may be the subject of a loan from the Fund to the employer, remunerated at the technical interest rate. The repayment terms shall be defined by contract between the parties.
5. Affiliated employers shall take the necessary measures to fulfill these obligations.
Upon the entry into force of this amendment and for a full period of four years, by way of derogation from Article 46, paragraph 1, the ordinary contributions due to the Fund shall be allocated as follows: 59.1% shall be borne by the employer and 40.9% shall be borne by the insured.
The supplementary provision established by the State chargeable to the fiscal year 2018 according to the prevailing accounting principles is not taken into account for determining the debt limits defined by the law on the finances of the State and municipalities (LFinEC), dated June 24, 2014 [47].
In 2022 and 2023, the ordinary contributions due to the Fund are set at 23.5% of the contributory salary, notwithstanding Article 46, paragraph 1, of the present law.
Annex
(art. 64)
I.
The law concerning the Pension Fund of the State of Neuchâtel, dated March 19, 1990 [49], is repealed.
II.
The law concerning the pension measures for magistrates of the judicial order, dated March 20, 1990 [50], is amended as follows
1. The Fund is an independent public law institution separate from the State and endowed with legal personality.
2. The headquarters and administration of the Fund are located in La Chaux-de-Fonds.
[3] 1 The Fund participates in the implementation of the compulsory insurance scheme introduced by the Federal Law on Occupational Old Age, Survivors, and Disability Pension Plans (LPP), dated June 25, 1982 [4].
2. It is registered in the occupational pension registry with the LPP Supervisory Authority and the Foundations of Western Switzerland (hereinafter: the Supervisory Authority) in accordance with Article 48 LPP.
[5] 1 The basic provident plan is a defined contribution plan within the meaning of Article 15 of the Federal Act on Vesting in Pension Plans, Old Age, Survivors, and Disability, dated 17 December 1993 [6] (hereinafter: Vested Benefits Act, VFA).
3. Repealed.
4. Repealed.
5. The Pension Fund may establish other types of plans.
[7] The Fund aims to insure the personnel of the public service of the Canton of Neuchâtel, as well as that of other associated employers, against the economic consequences of retirement, disability, and death.
1. The State of Neuchâtel and its establishments, with the exception of the Neuchâtel Cantonal Bank and the Cantonal Popular Insurance Fund, the City of La Chaux-de-Fonds as well as the City of Neuchâtel are affiliated by law with the Fund.
2. The following employers may conventionally affiliate
a) other municipalities;
b) inter-municipal unions;
c) institutions pursuing a public interest goal;
d) companies or institutions subsidized or economically or financially linked to the public function of the canton of Neuchâtel.
**[8] Employers Mentioned in Article 6, Paragraph 2, May Insure Their Staff with the Fund Under the Following Conditions:**
a) Possess a guarantee granted by the State or by one or more municipalities;
b) Offer their regular staff ordinary coverage guaranteeing the payment of salary or replacement benefits representing at least 80% of the salary and financed at a rate of at least 50% by the employer, for a period of 720 days, in the event of work incapacity due to illness, including, if necessary, after the end of employment relations, by the continuation of the current ordinary coverage;
c) Transfer the provident fund assets of their insured persons into the Fund's assets at 100%, regardless of the coverage rate of their former provident fund institution.
1. Employers mentioned in Article 6, paragraph 2, are bound to the Fund by an agreement, the content of which is determined by regulation.
2. In exceptional and justified cases, the agreement may exclude certain individuals or categories of individuals from the insurance.
[9] 1 The State and the municipalities guarantee the benefits owed to their personnel under the present law. Their respective guarantee is distributed in proportion to the commitments related to active insured persons and pensioners of each guarantee-issuing employer.
2. Additionally, the State may grant its guarantee to the following employers
a) establishments created under cantonal law;
b) institutions pursuing a public interest objective;
c) companies or institutions subsidized or economically or financially linked to the public service of the canton of Neuchâtel.
3. Repealed.
4. The municipalities may individually or jointly and severally grant their guarantee to the following employers
a) intercommunal unions or associations of municipalities;
b) institutions pursuing a public interest objective;
c) companies or institutions subsidized or economically or financially linked to one or more municipalities.
5. The Fund establishes in the agreement mentioned in Article 8 the modalities for the implementation of the guarantees in the event of partial liquidation and termination of affiliation.
6. The State and the municipalities may waive the principle of charging a fee for the guarantee provided respectively in paragraphs 2 and 4.
[10] 1 Employers within the meaning of Article 6, paragraph 2, may decide at any time, in agreement with their personnel, or if it exists, with their representation, to no longer affiliate their personnel with the Fund.
2. The decision to terminate an employer's affiliation with the Fund applies to both active insured individuals and pensioners.
3. In the event of the termination of affiliation and in the event of the departure of all or part of the insured personnel of an affiliated employer within the meaning of Article 6, paragraphs 1 and 2, the pension capital will be paid irrespective of the coverage rate. The employer must settle with the Fund the difference between the legal amount owed by the latter and the amount corresponding to the coverage rate; a possible method of amortization may be agreed upon at the time of the termination of the personnel's affiliation.
4. Exit modalities deviating from paragraph 3 may be established by transfer agreements concerning employers who enter the Fund with full capitalization, in case they should exit within a period of five years.
[11] 1. As of January 1st following the 17th birthday, all employees of employers, as defined in Article 6, who receive an annual salary exceeding the amount set in Article 2, paragraph 1, of the LPP are mandatorily insured. Until December 31st following the 19th birthday, or coinciding with it, the insurance covers only risks of disability and death (risk insurance). As of January 1st following the 19th birthday, it also includes retirement (full insurance).
2. Upon request, individuals who fulfill the conditions stipulated by the insurance regulations of the Fund are optionally insured.
3. The categories of persons mentioned in Article 1j of the Ordinance on Occupational Retirement, Survivors' and Disability Pension Plans (OPP 2), dated April 18, 1984 [12], are not insured.
4. The insurance regulations may provide for particular provisions, especially for members of firefighting services, police forces, and other professions with special requirements.
5. An entry threshold lower than that of the LPP may be established by agreement with the employers as defined in Article 6.
Article 13 [13]
[14] The bodies of the Fund are
e) repealed.
[15] 1 The Board of Directors is the supreme governing body of the Fund.
2. In accordance with Article 51a of the LPP, it ensures the general management of the Fund, oversees the execution of its legal duties, and determines its strategic objectives and principles as well as the means to implement them. It defines the organization of the Fund, ensures its financial stability, and supervises its management.
2bis It performs the following tasks, which are non-transferable and non-assignable
a) define the financing system;
b) set the objectives regarding benefits, pension plans, and the principles related to the allocation of free funds;
c) enact and amend regulations;
d) establish and approve the annual accounts;
e) determine the technical interest rate and other technical bases;
f) define the organization;
g) organize the accounting;
h) determine the circle of insured individuals and ensure their information;
i) guarantee the initial and continuous training of employee and employer representatives;
j) hire and dismiss the director and their deputy, on the proposal of the Office;
k) appoint and revoke the expert in professional provident matters and the audit body;
l) make decisions regarding the complete or partial reinsurance of the Fund and any potential reinsurer;
m) define objectives and principles concerning fund administration, execution of the investment process, and monitoring of this process;
n) periodically monitor the medium- and long-term consistency between the invested assets and commitments;
o) define the conditions applicable to the purchase of benefits;
p) define the relationships with affiliated employers and the conditions applicable to the affiliation of other employers;
q) give its pre-approval on any amendment to the present law;
r) determine the public law status of the Fund's personnel;
2ter The Board of Directors may assign commissions or certain of its members the task of preparing and executing its decisions or overseeing certain affairs. It ensures that its members are appropriately informed.
2quater It sets an appropriate allowance for its members for participation in sessions and training courses.
[16] 1 The Board of Directors consists equally of a maximum of eighteen members. The Fund sets the term of office for members and the procedures for their replacement in the event of resignation.
2. Employer representatives are appointed by the employers in proportion to their respective numbers of active affiliates. However, the State holds at least two seats. The Cities of La Chaux-de-Fonds and Neuchâtel each hold at least one seat. The Council of State appoints the representatives of the State, and the Municipal Councils of the Cities of La Chaux-de-Fonds and Neuchâtel appoint their respective representatives.
3. The representatives of the insured are appointed by unions and professional associations, proportionally to their numbers of active insured members. The unions and professional associations ensure fair representation of the different categories of personnel, in accordance with Article 51 of the LPP (Federal Act on Occupational Retirement, Survivors’ and Disability Pension Plans).
**Art. 21 [17]**
(Note: Since the content of the article is not provided, I only translated the title.)
Art. 23 [18]
**Art. 28 [19]**
*(Translation of the article's content into English goes here. Be sure to accurately preserve the original structure and use appropriate legal terminology.)*
Art. 30 [20]
[22] 1 The audit body shall annually verify the management, accounting, and investment of assets in accordance with the provisions of the LPP (Occupational Pensions Act).
2. The expert in occupational pension schemes shall periodically review the Fund and submit recommendations, in accordance with the provisions of the LPP, as well as technical guidelines for pension insurance experts.
[23] The Fund provides benefits within the framework of occupational pension plans in cases of retirement, death, and disability, as well as in cases of vested benefits (termination, early withdrawal).
[24] The Fund sets out in the insurance regulation the provisions (general and specific) applicable to the benefits within the framework of the financing established by this law.
**Art. 33 [25]**
**Art. 44 [26]**
[27] 1 The sources of funding for the Fund are
a) contributions from the insured and employers;
b) single or periodic payments from the insured allocated for the purchase of benefits;
c) contributions from third parties;
d) returns on assets;
e) special allocations.
2. These serve to cover all expenses, including management costs.
[28] 1 The amount of contributions by the insured and employers is determined based on the contributory salary. This is equal to the basic salary as defined by the regulations of the Fund, reduced by a coordination amount.
2. The coordination amount corresponds to 7/12 of the maximum annual AVS pension amount.
[29] 1 Ordinary contributions owed to the Fund are set at 22.5% of the contributory salary and are apportioned globally with 60% being the responsibility of the employer and 40% being the responsibility of the insured.
2. By way of derogation from paragraph 1, the contributions owed to the Fund for insured persons under risk insurance are set at 1.9% of the contributory salary and are apportioned with 60% being the responsibility of the employer and 40% being the responsibility of the insured persons.
3. The Board of Directors establishes the age-based installment plan for the insured’s contributions and the rules regarding the collection of contributions in the Fund’s insurance regulations.
1. Ordinary contributions owed to the Fund are set at 22.5% of the contributory salary and are apportioned globally with 60% being the responsibility of the employer and 40% being the responsibility of the insured.
[30]
[31]
[32] 1 The financial system of the Fund is a system of partial capitalization, with the approval of the Supervisory Authority, and meeting the requirements of Articles 72a, 72b, and 72e of the LPP (Pension Fund Law).
2. As of January 1, 2020, the coverage ratio of total obligations must reach 60%.
3. As of January 1, 2030, the coverage ratio of total obligations must reach 75%.
4. As of January 1, 2052, the coverage ratio of total obligations must reach 80%.
5. A financing plan in accordance with Article 72a of the LPP is defined by the Board of Directors in agreement with the accredited expert in occupational pension schemes and approved by the Supervisory Authority. This plan provides a path for recapitalization, limits within which it must remain in the event of unfavorable economic circumstances, maintenance of initial coverage ratios, and full coverage of commitments to pensioners.
6. If the path of recapitalization defined in paragraphs 2 to 4 is not adhered to, the Fund must immediately submit to the Council of State, for the attention of the Grand Council, proposals for measures to restore the situation in accordance with Chapter 5 of this law. Article 4, paragraph 4, is not considered in this calculation.
7. In the event of a shortfall as per Article 44 OPP 2, the Board of Directors must, in collaboration with the expert in occupational pension schemes, immediately plan appropriate measures to eliminate the shortfall. The principle of proportionality, as per Article 65d, paragraph 2 of the LPP, is taken into account.
8. The Grand Council’s Pension Commission annually receives the Fund’s management report for informational purposes. It reviews it and formulates any remarks or requests to the Fund’s Board of Directors.
[33] 1 The Fund periodically verifies, through the professional provident expert as defined in Article 72d of the LPP, that its long-term financial stability is ensured within the system of partial capitalization and that the financing plan referred to in Article 72a, paragraph 1 of the LPP and Article 49 of this law is adhered to.
2. The Board of Directors prepares every five years, for the first time in 2018, a report submitted to the Grand Council by the Council of State on the financial situation of the Fund and the achievement of the objectives set forth in Article 49 of this law.
[34] The assets of the Fund are managed in accordance with the provisions of the LPP in such a way as to ensure the security of the investments, a reasonable return, an appropriate distribution of risks, the coverage of foreseeable liquidity needs while ensuring a balance of investments in the different regions of the canton and being attentive to the principles of sustainable development.
The Fund, employers, insured persons, pensioners and their beneficiaries are required to provide the information and documents necessary for the implementation of this law.
Persons responsible for the administration, management, and control of the Fund are obligated to maintain confidentiality regarding the personal and financial situations of the insured and the employers.
Persons responsible for the administration, management, or supervision of the Fund shall be liable for any damage they cause to it either intentionally or through negligence.
[35] 1 The Cantonal Court has jurisdiction as the court of first instance in disputes related to welfare provisions.
2. The procedure is governed by the Administrative Procedure Act (APA), dated March 18, 2025 [36].
[37] 1 Upon the entry into force of this law, and for a maximum period of two years, the State guarantees the benefits owed under this law to the employees of all employers affiliated with the State Pension Fund as of December 31, 2009.
2. Municipalities, as well as employers as defined in Article 9, paragraph 4, must obtain a municipal guarantee by December 31, 2011.
3. At the expiration of this deadline, and in the absence of a guarantee from a public body, the concerned employers must leave the Fund and pay to it the difference between the legal amount owed by the Fund for the exit benefits of the insured and the amount corresponding to the coverage rate.
[38]
The repeal and modification of the law in force are governed in the annex.
[39] This law shall come into force on January 1, 2010, subject to the provisions of Chapters 1 concerning the constitution of the Fund and Chapter 4 concerning its organization.
2. The Council of State shall determine the effective date of the provisions of Chapters 1 concerning the constitution of the Fund and Chapter 4 concerning its organization.
1 The present law is subject to an optional referendum.
2. The Council of State shall provide, if necessary, for its enactment and execution.
Law enacted by the Council of State on December 8, 2008.
The entry into force of the provisions of the first chapters concerning the establishment of the Fund and chapter 4 concerning its organization is set to take effect on January 1, 2009.