Ordinance of the Grand Council on the Occupational Pension Scheme of Cantonal Staff and Teaching Staff (Pension Fund Ordinance; PKVO) (Pensionskassenverordnung; PKVO) - Pension Fund Thurgau (PKVO)

1. The Thurgau Pension Fund ensures occupational pension provision for state personnel and teachers in accordance with the Federal Act on Occupational Old Age, Survivors' and Disability Pension Plans (BVG).

2. The Thurgau Pension Fund is an autonomous public-law institution of the canton and is considered fully funded.

1. The approved annual financial statement shall be submitted for information to the Government Council, the Grand Council, and all affiliated employers.

2. ...

1. The employees paid by the canton and the teachers at Thurgau public schools are mandatorily insured with the Thurgau Pension Fund.

2. The highest governing body may admit additional institutions that fulfill a public function or have a connection to the canton or municipalities into the Thurgau Pension Fund.

3. The insurance relationship between the Thurgau Pension Fund and the employer is governed by a contract.

1. The pension plans for old-age benefits are based on the defined contribution principle.

2. ...

1. Contributions from employers and employees are established in the following proportion

1. * for savings insurance: 56% to 44%;

2. * for risk insurance: 56% to 44%;

3. * for administrative costs: 56% to 44%;

4. * for restructuring contributions: 56% to 44%.

2. The contribution ranges amount to 6% to 12% each for savings insurance, 0% to 2% each for risk insurance, and 0% to 1% each for administrative costs of the pensionable salary.

3. The contribution range for restructuring contributions is 0% to 5% each of the pensionable salary. Restructuring contributions from employees can consist of direct deductions from salary as well as from reduced or zero interest on pension assets. The reduced interest is aligned with the real interest rate, which is determined by the pension fund commission to achieve the pension fund's performance target.

4. For employers who join newly according to § 5 para. 2, the fund can set higher contributions.

1. The supreme body determines, after hearing the employers, when and to what extent the pensions are adjusted. In doing so, it takes into account the conversion rate and the financial situation of the fund.

2. The adjustment allowances are paid by the fund along with the pensions.

3-5. ...

1. The members of the Government Council are insured with the Thurgau Pension Fund.

1. Until the commencement of the old-age pension from the Thurgau Pension Fund, members of the Government Council have a right to a retirement pension, provided they have reached the age of 50 upon leaving office and do not claim the vested benefits.

2. At their request, a former member of the Government Council can receive the vested benefits until the completion of their 60th year of age. With the granting of the vested benefits, the retirement pension ceases.

3. The retirement pension amounts to 50% of the pensionable salary applicable at the time of leaving office. For less than twelve years of service, the retirement pension is reduced by 4% for each full year of service missing, with a maximum reduction of 20% of the pensionable salary.

4. The retirement pension is subject to adjustment according to § 8.

5. If a disability pension is granted, the retirement pension is limited to the portion of the pensionable salary not covered by the disability pension.

6. To the extent that the retirement pension, together with other income, exceeds 90% of the former income, it will be reduced.

7. After reaching the age of 63, the retirement pension is replaced by the old-age pension from the Thurgau Pension Fund. The old-age pension is calculated based on the savings balance that continues to earn interest after leaving office.

8. The retirement pension, including any adjustment supplements, is paid by the Thurgau Pension Fund, but the cost is borne by the state budget.

1. Pensions to former members of the Council of Government, which have not been replaced by an old-age pension from the fund, shall continue to be paid at the expense of the state budget in accordance with the law that established them.

2-7

...

8. For the actuarial present value of the inflation allowance accumulated up to 2008 as of December 31, 2013, and for the gradual reduction of the conversion rate up to December 31, 2015, the pension fund of the Canton of Thurgau shall be reimbursed a total of 53 million Swiss francs as of January 1, 2014.

9. The canton shall provide for all affiliated employers a contribution of at least 28 million Swiss francs up to a maximum of 56 million Swiss francs as a one-time restructuring contribution, on the condition that the employees also contribute a restructuring contribution as per the ratio in § 7 paragraph 1 number 4, of at least 22 million Swiss francs up to a maximum of 44 million Swiss francs.

10. After the restructuring step pursuant to § 11 paragraph 9 has been completed, the canton shall make a deposit for the purpose of achieving a 100% coverage ratio as an employer's contribution reserve with a waiver of use, of a maximum of 50 million Swiss francs. The Council of Government shall regulate the details.

1. The Ordinance of the Grand Council on the Occupational Pensions of State Personnel and Teachers (Pension Fund Ordinance) of December 18, 1996, is repealed.

1. This regulation shall enter into force on a date to be determined by the Governing Council.