1 Foundations and Organization, Public Levies » 14 Authorities and Administration » 145 State Personnel (PKG)

Seat and Purpose

1 The Pensionskasse des Kantons Schwyz (Pension Fund) is a public-

law institution with its own legal personality. Its seat is in Schwyz.

2 The Pension Fund insures its members and their survivors, in accordance

with federal law on occupational old-age, survivors' and invalidity pension provision, this Law, and the

pension regulations to be issued by the Board of Directors, against the economic

consequences of old age, invalidity, and death.

3 The Pension Fund is registered in the register for occupational old-age, survivors' and invalidity pension provision.

Terms

Within the scope of this Act, the terms mean

a) Pension Fund: Pension Fund of the Canton of Schwyz;

b) BVG: Federal Act on Occupational Retirement, Survivors' and Disability

Insurance of 25 June 1982;

c) Board of Trustees: supreme body of the Pension Fund within the meaning of the BVG;

d) Employer: Canton of Schwyz and other employers affiliated in accordance with § 3 para. 1 and para. 2;

e) Active Insured Persons: insured persons for whom, according to the Pension Regulations, no entitlement to a disability pension has yet arisen and who are not yet receiving an old-age pension from the Pension Fund (active insurance);

f) Members: active insured persons as well as old-age and disability pensioners;

g) Risk-Insured Persons: active insured persons who are insured for the risks of disability and death (risk insurance);

h) Fully Insured Persons: active insured persons who are insured for old age in addition to risk insurance (full insurance);

i) Savings-Insured Persons: active insured persons who continue to build up their old-age provision after reaching the maximum age for full insurance (savings insurance).

Circle of Insured Persons

1 Membership in the pension fund is mandatory for

a) employees of the Canton;

b) employees of cantonal institutions;

c) teachers in public schools;

d) members of the Cantonal Government;

e) members and employees of the cantonal courts.

2 Districts and municipalities, as well as other public law corporations and institutions that serve a task to be performed or promoted by the Canton, may insure their employees and their authority members with the pension fund. Pensions already being paid out by previous pension schemes will not be taken over by the pension fund. Affiliation is based on a written affiliation agreement.

3 Exceptionally, the Board of Directors may, upon application by the employer, exempt individual categories of employees or employees for special reasons from the obligation to join, if they are demonstrably insured with other registered pension schemes.

Ordinary Membership

1 As a general rule, only employees who, at the time of admission to the pension fund, are subject to mandatory insurance in accordance with the BVG (Federal Law on Occupational Retirement, Survivors' and Disability Pension Plans) will be insured in the pension fund.

2 Membership in the pension fund begins on the first day of the month in which the employment relationship commences or the insured annual earnings reach the BVG minimum wage, but at the earliest from January 1st of the year in which the 18th year of age is completed. Re-entry is treated as a new entry.

3 Active insurance ends no later than the completion of the 70th year of age.

4 The Board of Trustees regulates the details, in particular the duration of risk, full, and savings insurance, as well as retirement and the drawing of old-age benefits. Earlier age limits for the commencement of full insurance or later age limits for the end of full insurance according to federal law remain reserved. The Board of Trustees may permit employers to also insure employees not subject to BVG mandatory insurance in the pension fund.

Voluntarily Continued Membership

1 Active insured persons who have been elected to a public office by the voters of the Canton or by the Cantonal Council and who resign from office after at least four full contribution years, may voluntarily retain membership for the insured annual earnings no longer covered by this office, as long as their AHV-liable earned income does not exceed three times the maximum AHV old-age pension. Subject to para. 2, voluntary members have the same rights and obligations as other active insured persons.

2 The annual earnings insured at the time of resignation from office shall be frozen. Voluntary members must pay the employee and employer contributions for the entire year directly to the pension fund by June 30. If a voluntary member defaults on their contributions and fails to pay them even within a grace period of 30 days, they shall be excluded from the pension fund. Voluntary members may resign from the pension fund at any time before reaching the age of 59. The vested benefit amount shall be determined in accordance with the pension plan regulations.

Unpaid Leave

The Board of Directors regulates insurance during unpaid leave.

Insured Annual Earnings

1 The insured annual earnings generally correspond to the prospective AHV-compulsory annual earnings, but at most 120% of the maximum according to the salary table in the annex to the Personnel and Salary Act of June 26, 1991 (Personnel Act, PG).

2 The Board of Directors regulates the details, namely the wage components that are not to be insured and are only occasionally incurred.

II. Pension Benefits

1 Risk benefits for disability and death are provided temporarily until the end of full

insurance coverage. They are based on the insured annual earnings of active insured

persons (benefits-based system).

2 Retirement benefits are based on the savings balances of active insured persons

(contributions-based system).

III. Financing

Full Capitalization

The obligations of the pension fund shall be covered by pension assets.

Ordinary Contributions

a) Allocation and Amount

1 The ordinary contributions to the pension fund consist of

a) Contributions from employers and active insured persons to cover risk

benefits for disability and death as well as administrative costs;

b) Savings contributions from employers and fully insured persons and persons insured under a savings plan

to finance old-age benefits;

c) Conversion contributions from employers to finance a higher conversion rate.

2 The ordinary employer contributions as a percentage of the insured annual

earnings are

a) 1.5% for risk-insured persons;

b) 12.0% for fully insured persons and persons insured under a savings plan.

3 The Board of Trustees may reduce the ordinary employer contributions by up to 0.5%

of the insured annual earnings, provided these are not required for financing

a higher conversion rate.

4 The allocation of ordinary employer contributions for risk, administration, old-

age savings and conversion rate, the amount of ordinary insured person contributions

as well as the details, such as due date and payment modalities of the contributions,

shall be regulated by the Board of Trustees.

b) Savings Plans

1 The Board of Trustees may offer savings plans to employers, in which the employer contributions deviate from those according to Article 10 paragraph 2. Such savings plans are only possible for salary components exceeding three times the maximum AHV old-age pension amount.

2 The Board of Trustees may offer a maximum of three individually selectable savings plans for fully insured and savings-insured persons. The amount of the employer's savings contributions is independent of the individual savings plan choice of the fully insured and savings-insured persons.

Restructuring Contributions and Reduced Interest on Savings Balances in Case of Underfunding

1. If the funding ratio of the pension fund, as determined by the annual financial statements, is below 100%, the measures according to paras. 2 and 3 shall be taken during the calendar year following the determination of the underfunding.

2. Employers shall pay the following restructuring contributions, dependent on the funding ratio, in percentages of the insured annual earnings, for all fully insured persons and savings insured persons

a) 3.0% if the funding ratio is below 90%;

b) 2.0% if the funding ratio is at least 90% but below 95%;

c) 1.0% if the funding ratio is at least 95% but below 100%.

3. Fully insured persons and savings insured persons shall pay a restructuring contribution of 1.0% of the insured annual earnings. In addition, the savings interest rate applicable to the interest on savings balances shall be reduced by 1.0 percentage point below the BVG minimum interest rate set by the Federal Council (reduced interest rate) if the funding ratio is below 90%. If the funding ratio is at least 90% but below 95%, the savings interest rate shall be reduced by 0.5 percentage points. However, savings balances shall be remunerated with at least 1.0% or with any BVG minimum interest rate that may be even lower.

Garantieverpflichtung

1 The Canton guarantees the fulfillment of pension fund obligations until the

pension fund possesses a sufficient fluctuation reserve.

2 The guarantee obligation definitively ceases as soon as the fluctuation reserve

has reached the target size according to an annual financial statement.

IV. Organisation

Organs and Parity Management

1 The organs of the pension fund are the Board of Trustees and the Business Office.

2 The Board of Trustees regulates the details of parity management within the framework of Sections 14 to 16.

Board of Directors

1 The Board of Directors is the supreme body of the pension fund. It consists of ten

representatives and is composed of

a) five employer representatives appointed by the Government Council

– at least one member of the Government Council;

– at least two representatives of the districts and municipalities.

b) five employee representatives elected by the active insured members

– two representatives of the employees of the Canton and the cantonal institutions, as well as the members and employees of the cantonal courts;

– two representatives of the teachers in primary schools;

– one representative of the insured members of employers voluntarily affiliated under § 3 para. 2.

2 The term of office of the Board of Directors coincides with that of the Government Council.

3 The Board of Directors constitutes itself.

Duties of the Board of Directors

1 The duties of the Board of Directors are governed by federal law and this

Act.

2 The Board of Directors may appoint committees for the preparation and execution

of its resolutions or for the supervision of business transactions.

Registry

1 The Registry shall be determined by the Administrative Board.

2 The persons entrusted with the management shall be appointed by the Administrative Board upon proposal of the Registry.

V. Administration of Justice

1 Any person affected by decisions of the pension fund may appeal in writing and

with reasons to the Board of Directors. The Board of Directors shall regulate the procedure.

2 Disputes not resolved between the pension fund, employers, and beneficiaries shall be decided by the Administrative Court in court proceedings.

VI. Final Provisions

Amendments to Existing Law

The following decrees are amended as follows

a) Personnel and Salary Act of June 26, 1991

Section 21e para. 1

1 Employees who take early retirement or who are placed on early retirement are entitled to a monthly bridging pension no earlier than upon reaching the age of 63, if they receive full old-age benefits in accordance with the pension regulations of the Schwyz Cantonal Pension Fund. The entitlement expires upon reaching the ordinary AHV (Old-Age and Survivors' Insurance) retirement age.

b) Personnel and Salary Act for Teachers in Public Schools of June 27, 2002

Section 17 para. 1

1 Teachers who take early retirement or who are placed on early retirement are entitled to a monthly bridging pension no earlier than upon reaching the age of 63, if they receive full old-age benefits in accordance with the pension regulations of the Schwyz Cantonal Pension Fund. The entitlement expires upon reaching the ordinary AHV retirement age.

c) Administrative Procedure Act of June 6, 1974

Section 67 para. 1 lit. d

1 The Administrative Court rules as the sole instance on

d) Disputes concerning claims arising from an employment relationship governed by public law, including disputes concerning claims against the Schwyz Cantonal Pension Fund;

Repeal of Previous Law

With the entry into force of this Act, the Act on the Pension Fund of the Canton of Schwyz of May 19, 2004 is repealed.

Referendum, Publication, Entry into Force

1 This Act is subject to an optional referendum in accordance with Sections 34 or 35 of the Cantonal Constitution.

2 It shall be published in the Official Gazette and, after its entry into force, included in the Official Compilation of Laws.

3 The Government Council shall determine the date of entry into force.19

1 OJ 24-7 with amendments of May 25, 2022 (OJ 26-78) and of May 25, 2022 (PG, OJ 26-

79b).

2 Letters e to g as amended, letters h and i newly inserted on May 25, 2022.

3 SR 831.40.

4 Paragraphs 1, 3 and 4 as amended on May 25, 2022.

5 Paragraph 1 as amended on May 25, 2022.

6 SRSZ 145.110.

7 Paragraph 1 as amended on May 25, 2022.

8 Heading, paragraphs 1 to 3 as amended and paragraph 4 newly inserted on May 25, 2022.

9 Newly inserted on May 25, 2022.

10 Introductory sentence of paragraph 2 and paragraph 3 as amended on May 25, 2022.

11 Main title as amended on May 25, 2022.

12 Repealed on May 25, 2022.

13 Repealed on May 25, 2022.

14 Repealed on May 25, 2022.

15 SRSZ 145.110.

16 SRSZ 612.110.

17 SRSZ 234.110.

18 OJ 20-551.

19 January 1, 2015 (OG 2014 1906); amendments of May 25, 2022 entered into force on January 1, 2023 (OG 2022 2258) and of May 25, 2022 (OJ 26-79b) entered into force on January 1, 2023 (OG 2022 3081).