Act on the Pension Fund of the State of Vaud (LCP) - Object (LCP)

1. This law governs the organization and responsibilities of the Pension Fund of the State of Vaud (hereinafter: the Fund).

1. The Fund aims to provide, within the framework of occupational pension provision, benefits which, when combined with those from old-age, survivors, and disability insurance, enable insured persons and their survivors to maintain their standard of living appropriately in the event of retirement, disability, and death.

1. The Fund is a public law institution, endowed with legal personality.

2. It is registered in the professional provident fund register with the BVG and foundations supervisory authority for Western Switzerland.

3. It is exempt from all cantonal and communal taxes, including stamp duty, with the exception of

a. communal property tax without deduction of debts;

b. transfer tax on real estate transfers;

c. real estate gains tax.

4. Its registered office is located in a Vaud commune chosen by its board of directors.

1. The terms used in this Act to designate persons apply equally to women and men.

2. In this Act

a. "insured person" means any person insured with the Fund;

b. "pensioner" means any person receiving a pension from the Fund;

c. "beneficiary" means any survivor of an insured person or a pensioner entitled to a benefit from the Fund.

1. All individuals subject to the Personnel Law [B] and those to whom the State of Vaud (hereinafter referred to as: the State) or an affiliated employer as defined in Article 6, pays a salary are mandatorily insured if they meet the conditions stipulated by the Caisse's regulations, unless they are affiliated with another pension institution pursuant to a special legislation or such legislation conditions the insurance on other criteria.

2. Individuals who meet the conditions stipulated by the Caisse's regulations may opt for insurance upon request.

1. The following public law institutions, endowed with legal personality, may be affiliated to the Fund for the insurance of their staff in two situations

a. the principle of affiliation is provided for by a special law;

b. affiliation is authorised by the Fund, with the prior consent of the Council of State.

2. An affiliation agreement, previously submitted to the Council of State for an opinion, shall be concluded between the Fund and the new employer, in accordance with paragraph 1.

1. The Fund manages a risk plan and a retirement, death, and disability insurance plan, which are governed by the principle of benefit primacy.

2. The risk plan covers the risks of death and disability of employees from the start of affiliation until the entry into the insurance plan.

1. The resources of the Fund consist in particular of

a. the annual contribution;

b. the back contributions;

c. the optional buy-in contributions;

d. specific allocations from employers;

e. the return on assets;

f. third-party benefits.

1. The contributory salary is equal to the amount received by the insured as remuneration according to the legislation or contract governing them, but up to a maximum of the ceiling, reduced by the coordination deduction.

2. Upon notification from the Board of Directors, the Council of State may decide to insure all or part of certain salary supplements or enduring allowances.

3. Indemnities or salary components of an occasional or variable nature, as well as in-kind benefits, are not insured.

1. The total annual contributions for the retirement, death, and disability insurance plan amount to 25.5%.

2. The insured parties contribute 10% of their contributory salary.

3. Employers contribute 15.5% of the total contributory salaries of the insured parties.

4. The risk plan is supported by the insured parties through a contribution of 1% of their contributory salary.

5. It is supported by employers to the extent of 2% of the total contributory salaries of the insured parties.

1. The coordination deduction is equal to half of the full maximum AVS pension, plus 8.5% of the gross annual salary, but not exceeding 87.5% of the full maximum AVS pension.

2. In the case of part-time employment, the coordination deduction is reduced proportionally to the degree of employment or, where applicable, the degree of insurance.

3. An increase in the coordination deduction based on the evolution of the AVS pension shall not reduce the contributory salary considering a constant degree of insurance.

**1. The insured person who receives a salary from the State or who is subject to the State Personnel Act [B] shall pay a recall contribution when their salary grade is increased or they receive an equivalent salary increase.**

2. Paragraph 1 also applies to affiliated employers. For those who do not apply the State salary policy and for individually insured persons, the Fund determines the conditions under which the recall contribution must be paid.

3. The Fund determines the amount of the recall contribution as well as the methods of calculation and payment.

4. In the absence of a recall payment or in the case of a partial recall payment, as decided by the insured, the acquired insurance period is proportionally reduced based on actuarial calculations.

1. The Fund's benefits are as follows

a. retirement benefit;

b. OASI bridging pension;

c. OASI advance;

d. disability benefits;

e. DI bridging pension;

f. exemption from contribution payments;

g. pension or lump-sum payment in the event of death to the spouse or registered partner, cohabiting partner, divorced spouse, or former registered partner;

h. children's pension;

i. vested benefits in the event of premature departure, divorce or dissolution of registered partnership, and early withdrawal for home ownership;

j. cost-of-living adjustments.

2. After consulting the State Council and the Assembly of Insureds' Delegates, the Fund's Board of Directors may amend, extend, or restrict existing benefits, abolish some of them, or introduce new ones.

1. The bodies of the Fund are the Board of Directors and the Assembly of Delegates of the Insured.

2. The Board of Directors may entrust the management of the Fund to a third party. This party then has the authority to represent the Fund and to act on its behalf in routine operations based on a set of specifications and under the supervision of the Board of Directors.

1. The Board of Directors is composed of eight members.

2. The Council of State designates four members. The Assembly of Delegates of Policyholders elects the other four members.

3. The members of the Board of Directors are appointed for a term of five years, renewable once at most.

4. The president and the vice-president are chosen from among the members of the Board of Directors. They must not be part of the same group of members.

5. In the event of the death or resignation of a member of the Board of Directors, a replacement must be appointed within two months.

6. The head of the department tasked by the Council of State with liaising with the Fund may attend the meetings of the Board of Directors in a consultative capacity. They may be represented. They receive the minutes of the meetings of the Board of Directors and the Assembly of Delegates of Policyholders.

7. The third party responsible for managing the Fund attends the meetings of the Board of Directors in a consultative capacity, unless otherwise decided by the Board.

1. Decisions and regulations of the Board of Directors having a financial impact on the State are submitted in advance to the Council of State for an advisory opinion.

1. The Board of Directors is the supreme governing body of the Fund and ensures its general management.

2. Subject to the specific provisions of the present law, the powers of the Board of Directors are governed by federal law.

3. When exercising the powers provided for in Article 51a, paragraph 2, letter j) and paragraph 4 LPP [A], the Board of Directors seeks the prior opinion of the Council of State.

4. It defines its strategy regarding sustainable development and responsible investments in a document.

5. Before adopting or amending any regulation, the Board of Directors consults the Council of State and the Assembly of Policyholders' Delegates. The Council of State may delegate this responsibility to the department in charge of relations with the Fund [C].

1. The Assembly of Delegates of the Insured consists of thirty members representing the insured and the pensioners.

2. The umbrella associations of staff recognized under Article 13, paragraph 1 of the State of Vaud Personnel Act [B], as well as staff commissions pursuant to Articles 11 and 12 of the State of Vaud Personnel Act, organize the election of delegates.

3. In the absence of agreement between the parties on the election method, the supervisory authority adopts an election method.

4. Delegates are appointed for a term of five years, renewable once at most.

5. The Assembly of Delegates of the Insured constitutes itself and issues its internal organizational regulations.

6. The third party responsible for management attends, with an advisory vote, the meetings of the Assembly of Delegates of the Insured, unless decided otherwise by the Assembly.

1. The Assembly of Delegates of the Insured elects four representatives to the Board of Directors from among the insured and the pensioners.

2. It reviews the management report and the annual accounts, as well as the report from the audit body and the expert. It is informed about the activities of the Fund by the Board of Directors.

3. It gives its opinion on any amendment to the present law.

1. The Fund applies a system of partial capitalization based on the principle of sustainability, with the approval of the supervisory authority.

1. The Board of Directors adopts the financial plan provided for in Article 72a LPP.

**1. The Fund is in financial equilibrium when the initial coverage rates are adhered to and its overall coverage rate is at least equal to or greater than the minimum overall coverage rate provided for the year in question by the financing plan.**

**2. The Fund periodically has the expert in professional provident matters verify that its financial equilibrium is guaranteed in the long term under the system of partial capitalization and that the financing plan is adhered to.**

**3. The Fund annually informs the Council of State and the Assembly of Delegates of the Insured about its financial situation and compliance with the financial plan, in connection with the transmission of the documents mentioned in Article 26 of this law.**

1. No additional funding, either in the form of an increase in employer contributions or a one-time payment by the State, beyond that provided by the decree granting the Council of State a credit of CHF 1,440,000,000 for various measures allowing the recapitalization of the Pension Fund of the State of Vaud [D], will be granted by the Grand Council until 2052 as long as the Board of Directors of the CPEV has not taken structural measures including, notably, the introduction of salary calculation based on the entire career and an increase in retirement ages.

2. In the event of a foreseeable long-term structural financial imbalance, certified by the occupational pension expert, the Board of Directors shall inform the Assembly of Delegates of the insured, the employers, and the Council of State. Additionally, the Board of Directors shall prepare a report establishing a catalog of potential measures to restore balance and submit it to the Assembly of Delegates of the insured, the employers, and the Council of State, along with the advice of the occupational pension expert. The Council of State shall inform the Grand Council.

3. After gathering the opinions of the Assembly of Delegates of the insured, the employers, and the Council of State, the Board of Directors decides on the measures to be taken to restore long-term balance and informs the employers, the insured, and pension beneficiaries of the imbalance, its causes, and the measures taken.

1. When it must take measures within the meaning of Article 72e LPP [A], the Board of Directors shall establish a catalogue of measures and consult the Assembly of Delegates of the Insured and the Council of State.

1. The benefits owed by the Fund are primarily covered by the affiliated employers under the affiliation agreements.

2. The Fund benefits from the State's guarantee. The extent of this guarantee is determined by the LPP [A]. This guarantee is subsidiary to the coverage mentioned in paragraph 1.

1. The Board of Directors shall submit the management report, the annual accounts, the audit report, and the certified expert's report to the Council of State and the Assembly of Delegates of the insured, for informational purposes.

1. The Fund, the employers, the insured individuals, the pensioners, and their beneficiaries are required to provide the information and documents necessary for the application of this law.

1. The liability regime for persons responsible for the administration, management, and oversight of the Fund is defined by federal law.

2. The Act of May 16, 1961, on the Liability of the State, Communes, and their Agents (LRECA) [E] does not apply.

1. Any interested party may file a written and briefly reasoned complaint against a decision of the Fund within thirty days of receiving notification.

2. After review, the Board of Directors shall notify the interested party of a new, briefly reasoned decision.

3. The insured, the pensioner, or their beneficiaries, as well as the employer, may challenge, through legal action, the decisions of the Fund and the Board of Directors regarding their rights and obligations.

4. The action is addressed to the Cantonal Court or the Board of Directors, which immediately forwards it to the Court.

1. Upon the entry into force of this law, the amount of the withdrawal benefit is guaranteed as an acquired right, as well as the right to benefits for which the conditions have already been met.

2. The regulations of the Fund establish the method of transition to the new pension plan for the insured persons present in the Fund as of December 31, 2013. It also specifies the provisions applicable to current pensions and other transitional provisions.

3. Persons affiliated with the Fund under the repealed legislation and who could no longer be affiliated under this law remain insured with the Fund.

4. Employers affiliated with the Fund under the repealed legislation and who could no longer be affiliated under this law remain affiliated with the Fund.

1. The members of the Board of Directors in place at the time of the enactment of the law and who are reappointed to the new Board shall serve for the residual duration of their current term, extended by one year.

2. Upon the expiration of this extended term, they may not be reappointed if they have already served two terms.

3. Until all the members of the new Board have been reappointed, the Board functioning prior to the enactment of this law shall continue to operate.

1. The Law of June 18, 1984, on the Pension Fund of the State of Vaud is repealed.

1. The Council of State is responsible for the execution of the present law. It shall publish the text, in accordance with Article 84, paragraph 1, letter a) of the Cantonal Constitution and shall establish, by decree, the date of its entry into force.