Regulations on the Partial Liquidation of the Insurance Fund for State Personnel - Conditions

**1. Partial Liquidation of the Insurance Fund is Conducted in the Following Cases:**

a) Significant Reduction in the Number of Insured Persons. A significant reduction is deemed to occur if, as a result of the same cause, at least 50 insured persons exit the insurance fund within the span of one year, resulting in a decrease in the pension capital by at least 2 percent;

b) Restructuring of Parts of the State Administration pursuant to Article 1 paragraphs 2 a to c and paragraph 3 of the State Administration Act of June 16, 1994. Restructuring is considered to occur when, due to mergers, cessations, or other changes in areas of activity, or due to the transfer of tasks to third parties, at least 25 insured persons exit the insurance fund within the span of one year, resulting in a decrease in the pension capital by at least 1 percent;

c) Termination of a Connection Agreement, whereby at least 25 insured persons exit the insurance fund and a reduction in the pension capital occurs by at least twenty times the average pension capital of all insured persons.

**2.** If the reduction in the number of insured persons occurs within a period shorter or longer than one year, this period is considered the term as per paragraph 1 a and b of this provision.

1. Terminating insured persons are those insured persons affected by the partial liquidation.

2. Terminating insured persons are not included in the partial liquidation if their employment relationship ends for reasons unrelated to the partial liquidation.

1. A collective withdrawal occurs when groups of at least 25 insured individuals or pension recipients collectively transfer to a new pension institution as a result of a restructuring or the termination of an affiliation agreement. The remaining withdrawals within the scope of a partial liquidation are considered individual withdrawals.

1. The decisive reference date for the partial liquidation corresponds to the last day of the month in which the reduction of the insured members or the restructuring was completed, or the termination of the affiliation contract became legally effective.

2. The balance sheet date for the partial liquidation is December 31 preceding the determination of the fact of partial liquidation.

1. The free assets as well as the provisions and reserves are determined

a) according to the annual financial statements prepared as of December 31 in accordance with Swiss GAAP FER 26 and audited by the external auditor;

b) according to the insurance technical balance sheet prepared as of December 31, with the coverage ratio determined in accordance with Art. 44 BVV2;

c) additionally in accordance with the provisions of the affiliation agreement if its termination gives rise to the partial liquidation.

2. Free assets are only generated when the necessary provisions and reserves have reached their target size according to the provisions of the insurance fund on investments and provisions.

1. In the case of a collective withdrawal, there is, in addition to the entitlement to free funds, a collective proportional entitlement to technical reserves and fluctuation reserves. The entitlement to reserves exists only insofar as actuarial risks are transferred.

2. The contribution of the withdrawing group of insured persons to the formation of reserves and fluctuation reserves shall be taken into account.

3. There is no collective entitlement if the partial liquidation was caused by the group of insured persons that is withdrawing collectively.

1. The individual claim is to be accrued with interest from the time of withdrawal, similar to the withdrawal benefit.

2. The collective claim is not to be accrued with interest.

1. For the determination of the share of the free funds, the following are decisive

a) for the insured persons, the regulatory exit benefit;

b) for the pension recipients, the technically necessary pension capital.

2. In the distribution plan, transferred vested benefits and voluntary deposits made within the last 12 months prior to the date of partial liquidation are disregarded.

3. The free funds on the cut-off date of the partial liquidation are determined, subject to Article 6 of this ordinance, as a percentage of the regulatory exit benefits of the remaining and departing insured persons and the pension capitals of the pension recipients. For the departing insured persons and for the pension recipients, the share of the free funds corresponds to this percentage applied to the exit benefits or the pension capital, respectively.

4. The claim of the departing group of insured persons to the fluctuation reserves is measured by the share attributable to their exit benefits and their pension capital.

1. The insurance fund examines whether the conditions for a partial liquidation are met.

2. The decision on the execution of the partial liquidation is made by

a) the Department of Finance upon the request of the insurance fund in the case of partial liquidation resulting from a significant reduction in the number of insured persons or a restructuring;

b) the Personnel Office in the case of partial liquidation resulting from the termination of a contract.

1. The Department of Finance shall inform the insured individuals as well as the pension recipients in an appropriate manner about the existence of the partial liquidation, the procedure, and the distribution plan. Information shall be provided in writing whenever possible.

2. If the prior hearing of the joint commission is unsuccessful, the insured individuals as well as the pension recipients may, within 30 days of receiving the decision according to Article 9 paragraph 2 of this enactment, request the supervisory authority to review the conditions, the procedure, and the distribution plan and to make a decision on them.

3. The decision of the supervisory authority can be appealed to the Federal Administrative Court pursuant to Article 53d paragraph 6 of the BVG (Federal Act on Occupational Retirement, Survivors' and Disability Pension Plans).

1. Collective claims are regulated in the transfer agreement with the receiving pension institution. The Federal Act on Merger, Division, Conversion, and Transfer of Assets dated October 3, 2003, is applied accordingly.

2. In the event of a change in the assets or liabilities by at least 5 percent between the cut-off date of the partial liquidation and the transfer of funds, the provisions, reserves, and free funds to be transferred are adjusted.

3. The insurance fund presents the partial liquidation in the annual financial statements and explains it in the notes.

4. The auditing body reviews and confirms the execution of the partial liquidation within the scope of the ordinary audit report.

1. The issuance of this regulation and its amendments require the approval of the supervisory authority to be valid.

1. The Department of Finance informs the insured persons as well as the pension recipients about the issuance of this regulation and its amendments.

1. This decree shall be applied from 1 July 2012.