UPC (Switzerland) Pension Fund. Pension fund regulations 01 January 2017

Transcription

1 Pension fund regulations 0 January 07

2 Summary of regulations Overview of benefits and financing Pensionable annual salary Art. 6 Annual salary less coordination offset (see Annex 5). Financing Art. 7 Savings contribution (Sc) annual salary "Mini" savings plan (limited availability, see Art. 6 Transitional provisions) Age Employee Employer Total Sc "Standard" savings plan Age Employee Employer Total Sc "Maxi" savings plan Age Employee Employer Total Sc Supplementary contribution (Supc) in % of pensionable annual salary: Age Employee-Employer Total Supc Art. 0 - Art. Early retirement from age 58 or deferred retirement to age 70. Retirement capital or retirement pension. The conversion of the retirement capital into a retirement pension is carried out according to the age of retirement and the applied conversion rate (see Annex 5). AHV bridging pension up to the maximum AHV retirement pension. Retired person's child's pension: 0% of current retirement pension. Disability benefits Art. - Art. 6 Disability pension: Equals the projected retirement capital (less interest) converted using the conversion rate in accordance with the regulations, maximum 60% of the pensionable annual salary, from years after admittance to the pension fund 60% of the pensionable annual salary Disabled person's child's pension: 0% of the current disability pension. Waiver of contribution payments upon termination of the continued payment of full salary or expiry of daily allowances. Death benefits Art. 7 - Art. Spouse's or life partner's pension: 0% of the pensionable annual salary at the time of death Orphan's pension: 0% of the insured or current disability pension or the current retirement pension. Lump-sum death benefit amounting to 00% of the accrued savings capital, less the cash value of all the pensions and settlements triggered by the death. Benefits at departure Art. - Art. 5 Savings capital: In the event of departure, the savings capital pursuant to Art. 8 becomes due. Promotion of home ownership Art. 9 Advance withdrawal or pledge of pension benefits for the acquisition or construction of residential property for the insured person's own use. Pension fund regulations 0 January 07

3 Table of contents Table of contents A. General provisions Art. Name and purpose Art. Insured persons, conditions of admission Art. Medical examination, health restrictions Art. Age, retirement age Art. 5 Start and end of insurance Art. 6 Pensionable annual salary B. Funding 6 Art. 7 Contributions 6 Art. 8 Savings capital and special savings accounts 7 Art. 9 Entry lump sum, purchase of additional benefits 7 C. Retirement benefits 0 Art. 0 Retirement pension 0 Art. Lump-sum withdrawal of retirement benefits Art. AHV bridging pension Art. Retired person's child's pension D. Disability benefits Art. Disability pension Art. 5 Disabled person's child's pension Art. 6 IV substitute pension E. Benefits in the event of death 5 Art. 7 Surviving spouse's pension 5 Art. 8 Life partner's pension 6 Art. 9 Pension for divorced spouses 7 Art. 0 Orphan's pension 7 Art. Lump-sum death benefit 8 F. Termination benefits 0 Art. Vested benefits 0 Art. Amount of termination benefit 0 Art. Use of the vested benefits Art. 5 Occurrence of an insured event after departure G. Divorce Art. 6 General provisions on pension compensation Art. 7 Pension compensation before retirement age Art. 8 Pension compensation for recipients of retirement pensions, divorce pensions H. Financing residential property Art. 9 Advance withdrawal or pledge to finance residential property Pension fund regulations 0 January 07

4 Table of contents I. Further provisions governing the benefits 6 Art. 0 Coordination of pension benefits 6 Art. Right of recourse and subrogation 7 Art. Duty of advance payments, reclamation and hardship cases 7 Art. Assignment, pledge and offsetting 8 Art. Adjustment of current pensions in line with inflation 8 Art. 5 Joint provisions 8 Art. 6 Limitation of liability 9 Art. 7 Partial or total liquidation 9 J. Organisation, administration and control 0 Art. 8 Board of Trustees 0 Art. 9 Administrative office, financial year Art. 0 Auditor, pension actuary Art. Duty of notification and information Art. Duty of confidentiality Art. Financial equilibrium, financial restructuring measures K. Transitional and final provisions Art. Entry into force, amendments Art. 5 Gaps in the regulations, disputes Art. 6 Transitional provisions L. Abbreviations and terminology 6 M. Annexes to the pension fund regulations 8 Anhang Anhang Anhang Anhang Anhang 5 Anhang 6 Anhang 7 Amount of contributions Purchase of additional benefits Purchase to compensate for the effects of early retirement Purchase of AHV bridging pension Threshold rates, conversion and interest rates Application for lump-sum withdrawal of retirement pension Declaration regarding distribution of the lump sum payable at death Pension fund regulations 0 January 07

5 General provisions A. General provisions Art. Purpose Pension Fund Structure Registration pursuant to the BVG Security Fund Reinsurance Name and purpose Under the name a Foundation exists, the purpose of which is to protect the employees of UPC Switzerland GmbH and those companies with which the Foundation has signed an affiliation agreement, as well as their dependants and survivors, against the financial consequences of old age, death and disability in accordance with the provisions of these regulations and the Swiss Federal Law on Occupational Retirement, Survivors' and Disability Pension Plans (BVG). The Foundation manages a pension fund. The rights and obligations of the beneficiaries of the pension fund and of the employer are governed by these regulations. The pension fund is divided into pre-insurance and main insurance components. The pre-insurance component is solely a risk insurance component that covers the risks of death and disability before the age of 0. The main insurance component begins from the age of 0 and comprises: a. a savings component managed by the pension fund; b. insurance against the risks of death and disability. The Foundation provides mandatory employee benefits insurance and is therefore entered in the register of occupational pension providers pursuant to Art. 8 BVG. It provides the benefits pursuant to the BVG as a minimum. The pension fund is subject to supervision by the Canton of Zurich. 5 The pension fund is affiliated with the Security Fund in accordance with Art. 57 BVG and finances the Security Fund with an annual contribution as determined by the Federal Council. 6 The Foundation can reinsure the benefits in whole or in part with a life insurance company subject to supervision by the insurance supervisory authority in Switzerland. Art. Group of insured persons Insured persons, conditions of admission All the employees of upc cablecom GmbH and of the companies with which the pension fund has signed an affiliation agreement must become members of the pension fund if they have an annual salary that exceeds the entry threshold of 6/8 of the maximum AHV retirement pension (see Annex 5). Para. is reserved. The entry threshold is adjusted for part-time and partially disabled members of staff by the relevant reduction in the level of employment and/or the level of earning capacity. Pension fund regulations 0 January 07

6 General provisions Exemptions The following individuals are not admitted to the pension fund: a. Employees who have not yet completed their 7th year of age; b. Employees who have already reached or exceeded the retirement age (Art. ); c. Employees whose employment contract was concluded for a maximum period of three months. If the employment relationship is extended for a period of more than three months, the employee is insured from the date on which the extension was agreed. If several consecutive employment relationships last longer than three months in total and there is no interruption of more than three months, the employee shall be insured from the beginning of the fourth month; however, if it was agreed prior to the beginning of the employment relationship that the employment relationship/deployment would last longer than three months, the employee shall be insured from the beginning of the employment relationship; d. Employees who work part-time and already have mandatory insurance cover for their main profession or who are primarily self-employed; e. Employees who have been classified by the Disability Insurance (IV) as at least 70% disabled and persons whose insurance cover is provisionally continued with the previous pension scheme pursuant to Art. 6a BVG; f. Employees who are not, or do not expect to be, permanently employed in Switzerland and who have adequate insurance cover abroad, provided they apply for exemption from joining the pension fund. This exception does not apply for persons who, in accordance with the bilateral agreements and the European law on which they are based, are subject to social security according to Swiss legislation. Amounts below the entry threshold Voluntary insurance Externalinsurance Unpaid leave If the annual salary falls below the entry threshold and the insured person is therefore no longer subject to mandatory insurance pursuant to these regulations, the entitlement to benefits in accordance with these regulations shall cease. The pension fund shall continue to manage the savings capital pursuant to Art. 8 on a contribution-free basis for a maximum of two years. If an insured event occurs, the savings capital is paid out. Entitlement is governed mutatis mutandis by these regulations. The pension fund does not offer any voluntary insurance for part-time employees for that part of the salary they receive from other employers. Exceptions may be made by the Board of Trustees on the basis of objective criteria. 5 The pension fund does not continue any insurance for an employee whose employment was terminated without entitlement to a pension. However, at the request of the employer and based on objective criteria, the Board of Trustees may decide to continue the existing pension relationship of an insured person whose employment relationship was terminated, but for a maximum of years at most. This pension relationship must be governed by a special contract between the pension fund and the externally insured person. 6 In the case of unpaid leave, insurance continues unchanged if the contributions are fully paid during the period of leave, but for months at the most. If, however, contributions are no longer paid, the insurance shall only continue for one month after the termination of contribution payments. After this period, the provisions of par. apply. Pension fund regulations 0 January 07

7 General provisions Art. Medical examination Conditional acceptance Existing restrictions Existing ailments Pre-existing incapacity for work Medical examination, health restrictions After entering the employment relationship, all employees must make a declaration regarding their health using the form provided by the pension fund. Until this health declaration has been submitted, insurance coverage shall equal the benefits provided by the BVG. The pension fund may present this declaration to its appointed medical examiner for a medical opinion or, based on the information in the declaration, it may request a medical examination at the Foundation's expense. The insurance coverage for any additional services is definitive as soon as the pension fund has confirmed acceptance without reservations. The pension fund may, based on the results of the health examination, apply a health reservation for the risk benefits. However, this may only apply for a maximum of five years from the date of enrolment with the pension fund. If an insured event should occur during the period of the health reservation, the reason for which was also the reason for the health reservation, the risk benefits to be paid by the pension fund are reduced for the rest of the insured person's life to the mandatory benefits pursuant to the BVG. The part of the vested benefits brought into the pension fund that exceeds the cash value of these risk benefits is also paid out.. No health proviso may be applied to the pension benefits financed with the vested benefits brought into the pension fund unless such a proviso had already been applied by the previous pension scheme. For this proviso, the period that elapsed in the previous pension scheme must be deducted. If an insured event occurs prior to the medical examination, the pension fund is entitled to limit any risk benefits to the BVG minimum benefits if the event results from illnesses or the consequences of accidents from which the employee already suffered before commencing employment or to which he/she is susceptible due to former ailments as well as for existing ailments and infirmities. 5 If an employee is not fully capable of working before or upon being admitted to the pension fund, but is not disabled as defined by the BVG, and if the cause of this incapacity for work leads to disability or death within the relevant period as defined by the BVG, there is no entitlement to risk benefits under these regulations. If the employee was insured with another pension fund when he became incapable of working, the other pension fund is responsible for providing the relevant benefits. Art. Age Retirement age Age at purchase and atretirement Age, retirement age The insured person's age is the difference between the current calendar year and the year of birth. Retirement age is reached on the first day of the month after completing the 65th year of age (men) and the 6th year of age (women). Early or deferred retirement is possible. The relevant date for the calculation of a purchase equals the difference between the year of the purchase and the date of birth. The relevant age to determine the conversion rate is calculated exactly based on year and month. However, the days from the person s birthday until the first day of the following month are ignored. Pension fund regulations 0 January 07

8 General provisions Art. 5 Start End Admission Extended cover Start and end of insurance Insurance coverage begins at the start of the employment relationship, however, at the earliest when the conditions for entry pursuant to Art. have been fulfilled. Insurance coverage ends with the termination of the employment relationship or once the entry threshold pursuant to Art. par. is no longer reached, insofar as there is no entitlement to benefits. The claims of the departing insured are governed by Art. to Art. 5. Employees are enrolled for the pre-insurance on January of the year following their 7th year of age and for the main insurance on January of the year following their 9th year of age. The insured person remains covered for the risks of death and disability for one month following the termination of the pension relationship. If he enters a new pension relationship within this period, the new pension fund is responsible for the payment of benefits. Art. 6 Annual salary Coordination offset Pensionable annual salary Maximum/ Minimum Enrolment during the year Salary adjustments Adjustments to threshold amounts Vested rights from age 58 Pensionable annual salary The annual salary equals the registered annual salary (target income excl. expenses). Salary elements that occur only occasionally, such as shift allowances, service anniversary gifts and special bonuses, are not included. The coordination offset equals 0% of the annual salary, but 7/8 of the maximum AHV retirement pension at most (see Annex 5). The pensionable annual salary equals that part of the annual salary that exceeds the coordination offset. The pensionable annual salary is capped. It equals at least /8 of the maximum AHV retirement pension. It is limited to 7.5 times the amount of the maximum AHV retirement pension (see Annex 5). 5 The annual salary is determined for the full year. If employment is started during the year, it is annualised. 6 The annual salary is adjusted to the current situation on April, whereby any changes agreed for the current year must be taken into account. No adjustments are made for individuals who are fully incapable of working or fully disabled. If an insured event occurs, any incorrect adjustments are reversed. In the event of substantial increases in the pensionable annual salary Art. may be applied mutatis mutandis. 7 In the case of part-time and partially disabled employees, the maximum salary and the coordination offset are adjusted by a corresponding reduction in the level of employment and/or earning capacity. 8 Insured persons whose annual salary is reduced by at most half after the 58th year of age can request in writing that their previous pensionable annual salary should be retained until retirement age. The insured person must also pay the employer savings contribution for the continued insurance of this part of the salary. The further insurance of the previous pensionable annual salary is not possible if the insured person already receives retirement benefits from the pension fund (partial retirement). Pension fund regulations 0 January 07

9 General provisions Salary adjustment in the event of disability 9 If an insured person is declared disabled, benefits are generally divided according to the pension scale pursuant to Art. par. into a disability (passive) portion, for which no salary adjustments are made, and an active part in line with the degree of earning capacity, for which salary adjustments pursuant to the provisions of this Article are possible. Pension fund regulations 0 January 07 5

10 Funding B. Funding Art. 7 Start of obligation to pay contributions End of obligation to pay contributions Total contribution Savings contribution Supplementary contribution Contribution amounts Salary reduction from age 58 Salary deductions Waiver of contributions Contributions The obligation of the employer and the insured person to pay contributions starts upon enrolment with the pension fund. The obligation to pay contributions ends: a. upon leaving the pension fund, b. when all retirement benefits fall due, c. at the end of the month of death, d. upon termination of the continued payment of the salary or the expiry of the daily benefits, at the latest, however, upon reaching retirement age. The total contribution is made up of both of the following components: a. savings contribution, b. supplementary contribution The savings capital is accrued from the savings contributions. 5 The supplementary contributions are used to finance: a. death, disability and longevity risks, b. contributions to the security fund, c. administrative and other costs. The supplementary contribution is not refunded upon termination of the employment relationship. 6 The level of contributions for the employer and the insured person are determined in Annex. The insured person can decide between the "Standard" and "Maxi" savings contributions once a year on January. The insured person must inform the pension fund of this by 0 November of the preceding year at the latest. 7 In the case of the continued insurance of the previous pensionable annual salary following a salary reduction after age 58 (see Art. 6 par. 8), the additional savings and supplementary contributions as well as any restructuring contributions pursuant to Art. par. are debited from the employee. 8 The employer is liable to the pension fund for the total contributions. The employer must deduct the insured person's contribution from his salary. The contributions are paid on a monthly basis. If the employer is in arrears, the pension fund will charge an appropriate default interest. 9 If an insured person is incapable of gainful employment due to sickness or accident for an uninterrupted period of three months, the contributions of the insured person and the employer shall be reduced from the fourth month - but upon termination of the continued payment of full salary at the earliest - in accordance with the level of disability that applies for the calculation of the disability pension. The savings contributions for the waiver of contributions are calculated based on the "Standard" savings plan. 6 Pension fund regulations 0 January 07

11 Funding Art. 8 Savings account Accrual of savings capital Special savings accounts Interest rate Interest Pro rata interest Savings capital in the event of disability BVG retirement assets Savings capital and special savings accounts A savings account is managed for each insured person. The following is credited to the savings capital: a. the savings contributions, b. the benefits brought into the pension scheme, c. repayments in the context of the promotion of home ownership, d. compensation payments received following divorce, e. any purchase sums, and f. interest. The savings capital is debited with: a. early withdrawals in the context of the promotion of home ownership, b. compensation payments made following divorce. The total of these sums equals the savings capital. Amounts earmarked for the purchase of early retirement or an AHV bridging pension are credited to a separate special savings account. For these accounts, par. applies mutatis mutandis. The interest rate for the business year just ended is determined annually by the Board of Trustees based on the financial situation. The Board of Trustees also determines the interest rate for pro rata payments (insured events) during the current financial year. 5 The interest is calculated based on the balance of the accounts as per the end of the previous year and credited at the end of the calendar year. 6 If a vested benefit was paid in or a purchase made, if an insured event occurred, if lump-sum benefits for the financing of home ownership or due to divorce are paid or if the insured person leaves the pension fund during the year, the interest for the relevant year is calculated pro rata temporis. 7 The savings account is divided according to the pension scale pursuant to Art. par. into a disabled (passive) part and an active part. 8 The pension fund shall determine how high the share of the retirement assets pursuant to the BVG is in relation to the whole savings capital in accordance with par. and. The BVG retirement assets earn interest at the minimum interest rate pursuant to Art. BVG. Art. 9 Vested benefits brought into the pension fund Entry lump sum, purchase of additional benefits Termination benefits from other pension schemes, including funds from vested benefit accounts and/or safekeeping accounts or vested benefit policies, must be brought into the pension fund as transfers. The full amount is credited to the savings account as per the transfer date. The pension fund is entitled to request a confirmation by the insured person that all vested benefits have been transferred. Pension fund regulations 0 January 07 7

12 Funding Purchase of maximum benefits Purchase for early retirement Continued employment following purchase for early retirement Purchase of AHV bridging pension Tax deductibility Restrictions Persons from abroad An insured person who is capable of working and whose savings capital does not amount to the maximum benefits can purchase additional pension benefits at any time prior to the occurrence of an insured event, subject to par. 7 et seq. and taking into account any assets from previous pension relationships and any pillar a assets pursuant to Art. 60a of the Ordinance on Occupational Retirement, Survivors' and Disability Pension Plans (BVV ). The calculation of the possible purchase amount can be found in Annex. If an actively insured person has purchased all the missing pension benefits pursuant to par., he/she may additionally make purchases to cover the pension reduction in the event of early retirement pursuant to Annex. In the event of a further purchase at a later date, the proposed purchases (incl. interest) will be taken into account. In order to cover the full reduction in pension benefits for a proposed retirement age, the accrued savings capital must be constantly checked against the relevant value in the table and the current pensionable annual salary and further purchases made if necessary. A separate account is managed for the purchase of these pension provisions. If the retirement pension, including any savings capital for the purchase to compensate for early retirement, exceeds the insured retirement pension from the savings capital by more than 5 percent at retirement age, the following measures come into force: a. The employee and the employer no longer pay any contributions, apart from supplementary contributions pursuant to Art. 7 par. 5 and contributions for financial restructuring pursuant to Art. par. a. b. The conversion rate valid at this point is frozen. In the event of the permanent termination of the employment relationship, the retirement pension that is due is calculated using this frozen conversion rate. c. All accounts cease to earn interest. If the benefit target is exceeded due to changes to the level of employment or deposits due to divorce, the excess must be taken into account accordingly. The insured retirement pension at retirement age is determined by the maximum pensionable salary for the last five years. 5 An insured person has the option of pre-financing all or part of an AHV bridging pension in accordance with the table in Annex. The AHV bridging pension is paid from the retirement age that applies for the pre-financing, even if the insured person continues to work past this retirement age. 6 The insured person must verify with the relevant authorities whether the voluntary purchase according to par.,, and 5 may be offset against tax. 7 If purchases have been made, the resulting benefits may not be withdrawn as a lump sum in the following three years. If advance withdrawals were made to finance residential property, voluntary purchases may only be made once these advance withdrawals have been repaid. Insured persons who have made advance withdrawals for the purchase of residential property may, however, make voluntary purchases up to three years before their entitlement to retirement benefits, provided that these purchases, together with the said advance withdrawals, do not exceed the maximum permissible benefits specified by the regulations. 8 Persons coming from abroad who have never before belonged to a pension fund in Switzerland may not purchase benefits for more than 0% of their pensionable salary during the first five years following enrolment. 8 Pension fund regulations 0 January 07

13 Funding Employer contribution 9 The employer can contribute to a purchase. Pension fund regulations 0 January 07 9

14 Retirement benefits C. Retirement benefits Art. 0 Entitlement Ratio Early retirement Reduction of retirement pension Semi-retirement Deferred retirement Disability and retirement Death during deferred retirement Requirements for deferred retirement Retirement pension Upon reaching retirement age, the insured person is entitled to a lifelong retirement pension. The amount of the annual retirement pension is determined by the accrued savings capital converted by the relevant conversion rate pursuant to Annex 5. Any accrued additional savings assets can also be drawn in the form of a retirement pension once it has been converted with the same conversion rate. Early retirement is possible from the first of the month following completion of the 58th year of age. In the event of early retirement, the insured person receives a pension from the pension fund from the date of termination of the employment relationship. The amount of the retirement pension at early retirement equals the savings capital multiplied by the conversion rate pursuant to Annex 5 plus the savings in the "Purchase to compensate for the effects of early retirement" special savings account at the time of early retirement. 5 If the insured person partially retires from employment within the period of early retirement, he/she may request a corresponding partial retirement if his/her relevant annual salary is reduced by at least one third. 6 If an insured person remains in an employment relationship beyond the standard age of retirement with the agreement of his/her employer, he/she may either withdraw his/her pension instalments as cash or return them to his/her savings account in the pension fund where they will earn interest. These deferred pension payments plus interest are paid out as a separate lump sum upon the definitive termination of the employment relationship, at age 70 at the latest. 7 If an insured person becomes disabled after early retirement or partial retirement, there is no entitlement to disability income and retirement benefits are triggered. During the period of deferred retirement no disability benefits are paid. If the insured person becomes disabled during this period, retirement benefits become due. 8 In the event of death during deferred retirement, unclaimed retirement pensions are treated as a lump-sum death benefit pursuant to Art.. 9 In the event of the deferment of the total retirement benefits, the annual salary must comprise at least two thirds of the annual salary that the insured person would have drawn at retirement age. In the event of the deferment of half the retirement benefits, this must equal at least one third. 0 Pension fund regulations 0 January 07

15 Retirement benefits Art. Lump-sum withdrawal Written declaration Spouse's consent Restrictions Lump-sum withdrawal of retirement benefits The insured person can withdraw all or part of their savings capital including any special savings capital or parts thereof in cash instead of drawing a retirement pension. Such a lump-sum withdrawal results in a corresponding reduction in the retirement pension and the co-insured benefits. A corresponding amount of claims vis-à-vis the pension fund is deemed to have been discharged with the withdrawal of the retirement capital. A corresponding written application (see Annex 6) must be submitted no later than three months before the insured person reaches retirement age or three months before the date of any early or deferred retirement. Such an application is irrevocable. If the insured person is married, the application is valid only with the written consent of the spouse. The pension fund is entitled to request a notarised authentication or any other verification of the signature. A lump-sum withdrawal for recipients of a disability pension is only possible if the insured person had applied to withdraw the lump sum in writing before the occurrence of the incapacity for work that led to the disability. Art. Entitlement Start / end Amount, duration and financing Semi-retirement Adjustment AHV bridging pension Insured persons who take early retirement are granted an AHV bridging pension equalling the maximum AHV retirement pension on request, which compensates for the missing AHV retirement benefits. The AHV bridging pension is paid out at the retirement age relevant for the pre-financing. It ceases once the duration determined pursuant to par. has ended or if the insured person dies. In the event of the death of the recipient of an AHV substitute pension, the pension is capitalised for the remainder of the term and paid out as a lump-sum death benefit pursuant to Art.. The amount and duration of the AHV bridging pension can be determined by the insured person himself/herself. The AHV bridging pension equals at most the amount of the maximum AHV retirement pension at the time of the early retirement and is paid until the normal AHV retirement age is reached at most. It is financed via a life-long reduction in the retirement pension or with funds from the special savings account "Purchase of AHV bridging pension". In the event of semi-retirement, the AHV bridging pension, possibly already reduced pursuant to par. and, is reduced proportionally to correspond with the level of retirement. 5 The AHV bridging pension is not increased following any increase in the AHV retirement pension. Art. Entitlement Start / end Retired person's child's pension Recipients of a retirement pension are entitled to a retired person's child's pension for every child that would be entitled to an orphan's pension pursuant to Art. 0 upon their death. The retired person's child's pension is paid from the same date as the retirement pension. It expires when the underlying retirement pension ceases, but at the latest once the entitlement pursuant to para. ends. Pension fund regulations 0 January 07

16 Retirement benefits Ratio The annual retired person's child's pension equals 0% of the current retirement pension for each entitled child. The retired person's child's pension is reduced proportionally as soon as it equals more than 0% of the current retirement pension. Pension fund regulations 0 January 07

17 Disability benefits D. Disability benefits Art. Entitlement Advance payment Level of disability Pension scale Start End Ratio Congenital deformity Disability pension Insured persons who are at least 0% disabled as defined by the IV are entitled to a disability pension, provided that they were insured in the pension fund when the incapacity for work, the cause of which led to disability, occurred. The Board of Trustees can grant a disability pension before the insured person has received any benefits from the IV based on the report by its official medical examiner. The prerequisite is that the disability should already have been reported to the IV. Once the continued payment of salary has ceased or all entitlement to any daily allowances from the loss of earnings insurance has expired, the disability pension is paid for a maximum of two years. If there is no decision by the IV at the end of these two years, the insured person must repay all the pension benefits. The level of disability equals the disability level applied by the IV. With regard to the extra-mandatory part of the disability pension, the Board of Trustees may deviate from the decision of the IV, provided that the pension fund's appointed medical examiner supports this adjustment with a medical opinion. If the level of disability is 70% or more, the full disability pension is paid. If the level of disability is at least 60%, the insured person is entitled to a threequarter pension, if it is at least 50%, a half pension, and if it is at least 0%, a quarter pension. There is no entitlement to a disability pension for a level of disability of less than 0%. 5 The disability pension is paid from the beginning of the payment of the IV pension, but after the termination of the continued payment of salary or the expiry of any daily allowance from the loss of earnings insurance at the earliest. 6 The disability pension is paid during the period of earning incapacity, at the most, however, until normal retirement age is reached or until death. 7 In the event of full disability, the annual disability pension equals the projected retirement capital comprising the retirement assets at the start of the disability and the future retirement credits (excl. interest) pursuant to the "Standard" savings plan. The projected retirement capital is converted into a pension using the conversion rate pursuant to the regulations. This equals a maximum of 60% of the pensionable annual salary. If the insured person has been insured with the pension fund for more than two years when the incapacity for work resulting in the disability occurs, the annual disability pension equals 60% of the pensionable annual salary. For insured persons who were already insured with the pension fund before September 008, the annual disability pension equals 60% of the pensionable annual salary. 8 If at the beginning of insurance with the pension fund a person is at least 0% but less than 0% incapable for work due to a congenital deformity or a disability that occurred when they were a minor, there is an entitlement to disability benefits based on these causes of the incapacity for work only if the incapacity for work increased to more than 0% during the period of insurance and the person was insured to at least 0%. Pension fund regulations 0 January 07

18 Disability benefits Special savings account assets 9 In the event of anticipated long-term full disability, the insured person is entitled to the assets accrued in the special savings accounts "Purchase to compensate for the effects of early retirement" and "Purchase of an AHV bridging loan" at the time of the full disability. In the event of partial disability, all the assets in the special savings accounts "Purchase to compensate for the effects of early retirement" and "Purchase of an AHV bridging loan" earn interest until they mature at retirement. Art. 5 Entitlement Start / end Ratio Disabled person's child's pension Recipients of a disability pension are entitled to a disabled person's child's pension for every child who would be entitled to an orphan's pension pursuant to Art. 0 in the event of their death. The disabled person's child's pension is paid from the same date as the disability pension. It expires when the underlying disability pension ends, at the latest, however, when the entitlement according to para. no longer exists. The annual fully disabled person's child's pension equals 0% of the current disability pension for each entitled child. In the case of partial disability, the amount of the disabled person's child's pension is determined pursuant to Art. para.. Art. 6 Entitlement Start / end IV substitute pension If the recipient of a disability pension from the pension fund is not yet in receipt of an IV disability pension, the pension fund can pay him/her an IV substitute pension equal to the anticipated IV pension, which is then offset against any IV pension. The IV substitute pension is paid for a maximum of two years. If there is no decision by the IV at the end of these two years, the insured person must repay all the IV substitute pension benefits. Pension fund regulations 0 January 07

19 Benefits in the event of death E. Benefits in the event of death Art. 7 Entitlement Settlement Start / end Ratio Increase Surviving spouse's pension in the event of lump-sum withdrawal of the retirement pension Lump-sum payment of surviving spouse's pension Surviving spouse's pension If the deceased insured person was insured or in receipt of a retirement or disability pension from the pension fund at the time of death or at the time of the occurrence of the incapacity for work the reason for which led to death, the surviving spouse is entitled to a spouse's pension, insofar as at the time of death he/she: a. is responsible for the upkeep of one or more children who are entitled to an orphan's pension, or b. has completed his/her 0th year of age and the marriage has lasted at least three years. If the spouse does not fulfil any of these requirements, he/she is entitled to a settlement equalling three annual spouse's pensions. The entitlement to a surviving spouse's pension starts in the first month in which the salary or the pension of the deceased insured person is no longer paid. It expires with the death of the surviving spouse. The annual surviving spouse's pension for life equals 0% of the pensionable salary upon the death of the insured person before retirement age. In the event of the death of a recipient of a retirement pension, the spouse's pension equals 60% of the current retirement pension. 5 Before the first payment of the retirement pension, the insured may increase the spouse's prospective pension. The retirement pension is therefore reduced for life based on the technical bases of the Foundation. The increased spouse's pension may not be higher than the reduced retirement pension. The notification period is three months. The notification must be made in writing. This reduction only affects the retirement pension and it remains in force even if the spouse dies before the recipient of the retirement pension. 6 If part of the retirement pension was withdrawn as a lump sum upon reaching retirement age, a corresponding surviving spouse's pension falls due only for the remaining part of the pension. 7 The spouse's pension may also be withdrawn as a lump sum. The capital value equals the actuarial cash value, but the value of the accrued savings capital at most. The surviving spouse must submit the corresponding application to the Board of Trustees within 6 months after the start of the entitlement. Pensions already paid are taken into account in the case of a lump-sum withdrawal. With the withdrawal of the lump sum, all regulatory claims except for the claim for orphan s pensions are deemed to have been discharged. Pension fund regulations 0 January 07 5

20 Benefits in the event of death Reductions in pensions Minimum benefits Remarriage Congenital deformity Registered partnership 8 If the surviving spouse is more than ten years younger than the insured person, the spouse's pension is reduced by.5% of the full spouse's pension for every full or partial year exceeding the age difference of ten years, but by 50% at most. If the marriage takes place after retirement age, the spouse's pension is reduced as follows: a. marriage during the insured person's 66th year of age: by 0% b. marriage during the insured person's 67th year of age: by 0% c. marriage during the insured person's 68th year of age: by 60% d. marriage during the insured person's 69th year of age: by 80% If the marriage takes place after the insured person's 69th year of age there is no entitlement to a spouse's pension. 9 Entitlement to a spouse's pension in accordance with the BVG is guaranteed in every case. 0 If the spouse remarries, the spouse's pension expires and there is an entitlement to a lump-sum settlement equalling three annual pensions. If at the beginning of the insurance with the pension fund a person is at least 0% but less than 0% incapable for work due to a congenital deformity or a disability that occurred when they were a minor, there is an entitlement to a survivor's pension based on these causes of the incapacity for work only if the incapacity for work increased to more than 0% during the period of insurance and the person was insured to at least 0%. A registered partnership is deemed the same as a marriage pursuant to the Swiss Federal Law on the Registration of Partnerships for Same-Sex Couples. The provisions of these regulations relating to spouses therefore apply equally for insured persons living in a registered partnership. Art. 8 Entitlement Life partner's pension Pursuant to the same requirements and reduction provisions as for the spouse's pension, the designated life partner of the insured person (same or opposite sex) is entitled to a survivor's pension equal to the spouse's pension or the single settlement, if: a. the insured person and the beneficiary are unmarried and there are no legal reasons (Art. 96 et seq. Swiss Civil Code), excepting the fact that they are of the same sex, why they should not have married, b. the life partner maintained a demonstrably fixed and exclusive relationship as a couple with the deceased insured person and maintained a joint household with him/her for at least five years immediately prior to the insured person's death or was responsible for the support of one or more joint children whilst living in the same household with the insured person, c. the insured person informed the pension fund in writing prior to his/her death of the entitled life partner, and d. the beneficiary is not in receipt of any spouse's or life-partner's pension from the employee benefits insurance. 6 Pension fund regulations 0 January 07

21 Benefits in the event of death Conditions Death of pension recipient End Settlement Calculation of years The insured person or the beneficiary must submit the documents required for clarification. The application for a life partner's pension must be submitted three months following the death of the insured person at the latest. In the event of a claim, the Board of Trustees establishes finally whether the requirements for a life partner's pension have been fulfilled. In the event of the death of a pension recipient, there is an entitlement to a life partner's pension only if the partnership was entered into before the 60th year of age. The life partner's pension ends if the pension recipient marries, enters a new life partnership or dies. 5 If the life partner does not fulfil all the requirements for a life partner's pension pursuant to Art. 7 par., but the partnership lasted at least five years, he/she is entitled to a settlement equal to three annual spouse's pensions. 6 The duration of a partnership that has already been registered pursuant to par. is calculated in the same way as the duration of a marriage pursuant to the requirements for entitlement as set out in Art. 7. Art. 9 Entitlement Reduction Remarriage, death Pension for divorced spouses Subject to par., the divorced spouse is entitled to a spouse's pension equalling the BVG statutory benefits if: a. he/she was granted a pension or lump-sum settlement to finance a lifelong pension in the divorce decree and b. the marriage lasted at least 0 years. The benefits are reduced by the amount that they, together with the benefits from other insurance schemes, in particular the AHV and IV, exceed the entitlement granted in the divorce decree. The benefits from the AHV are taken into account in this only insofar as they are higher than the entitlement to a disability pension from the IV or a retirement pension from the AHV. If the spouse entitled to a pension remarries or dies, his/her entitlement visà-vis the pension fund expires. The entitlement pursuant to the BVG is guaranteed in every case. Art. 0 Entitlement Start / end Orphan's pension The children of a deceased insured person or a pension recipient are entitled to an orphan's pension; this applies to foster children only if the deceased insured person can be proved to have been responsible for their support. Entitlement starts upon the death of the insured person, at the earliest, however, upon termination of the continued payment of salary. It expires upon the orphan's death or completion of his/her 0th year of age. Pension fund regulations 0 January 07 7

22 Benefits in the event of death Special cases Ratio Orphan's pensions are also paid out after completion of the 0th year of age, but at the latest until completion of the 5th year of age: a. to children who are still in education; b. to disabled children who are disabled at completion of their 0th year of age, until earning capacity is achieved. The pension to which the disabled child has a claim is calculated on the basis of the child's level of disability (same scale as in Art. par. ). If the child is permanently disabled, the Board of Trustees decides on any further pension payments. The annual orphan's pension equals 0% of the insured or current disability pension or 0% of the current retirement pension for each entitled child. In the case of full orphans, the pension is doubled. Art. Entitlement Order of beneficiaries Declaration Lump-sum death benefit If an active insured person dies before drawing a retirement or disability pension, there is an entitlement to a lump-sum death benefit. The survivors are eligible according to the following ranking, independent of inheritance law: a. the spouse and children and/or foster children of the deceased person who are entitled to an orphan's pension pursuant to Art. 0; in the absence of whom b. natural persons who were supported to a significant degree by the insured person at the time of his/her death or the person with whom the insured deceased person had been living in a permanent marriage-like relationship during the last five years or who is responsible for the support of one or more joint children; in the absence of whom c. the children, insofar as they are not included under a; in the absence of whom Entitlement pursuant to b only applies if the insured person notified the fund management of the beneficiary in writing during his/her lifetime (see Annex 7). The insured person can specify in a written declaration for the attention of the pension fund (see Annex 7) which persons within the entitled group are to be beneficiaries and what proportion of the lump-sum death benefit they are entitled to. 8 Pension fund regulations 0 January 07

23 Benefits in the event of death Absence of a declaration Ratio Special savings accounts If there is no written declaration by the insured person regarding the distribution of the lump-sum death benefit, said benefit shall be divided between the groups of beneficiaries according to the order set out under par. as follows: In the case of several beneficiaries in group a: the spouse shall be allocated 50% and the remaining 50% shall be divided equally between the children and foster children of the deceased who are entitled to an orphan's pension pursuant to Art. 0. If there is no spouse, the full lump-sum death benefit shall be divided equally between the children and foster children of the deceased who are entitled to an orphan's pension pursuant to Art. 0. In the event of several beneficiaries in groups b to c: The benefit shall be divided equally. The ranking pursuant to par. must be observed. 5 The lump-sum death benefit is the savings capital on death. The lump sum payable at death is reduced by the present value of all pensions and settlements that are triggered by the death. 6 Any special savings capital is paid out to all the groups of persons as an additional lump-sum death benefit. Pension fund regulations 0 January 07 9

24 Termination benefits F. Termination benefits Art. Due date Interest on arrears Precedence of retirement benefits Vested benefits If the pension relationship is terminated before an insured event has occurred and without any benefits under these regulations falling due, the insured person leaves the pension fund at the end of the last day for which there is an obligation to pay the salary and vested benefits become due. The vested benefits earn interest at the BVG interest rate from the first day following the insured person's departure from the pension fund. If the pension fund does not transfer the vested benefits within 0 days after receiving the required instructions for the transfer, interest on arrears must be paid from the end of this period (see Appendix 5). If the insured person leaves after the age of 58, there is no entitlement to a termination benefit; instead, early retirement is triggered pursuant to Art. 0 unless the insured person begins new employment and the termination benefit can be transferred to a new pension scheme or the insured person can prove that he/she is registered as unemployed. Art. Calculation methods Savings capital Amount of termination benefit The vested benefits are calculated pursuant to Art. 5, 7 and 8 FZG. The termination benefit equals the higher amount resulting from the comparison of the following methods of calculation. Savings capital pursuant to Art. 5 FZG: The vested benefits equal the accrued savings capital at the date of departure pursuant to Art. 8 plus the special savings accounts pursuant to Art. 8, par. to 6. Minimum amount Minimum amount pursuant to Art. 7 FZG: The termination benefit equals the total of: a. the vested termination benefits and any purchases plus interest. The interest rate is the same as the BVG interest rate; b. the savings contributions paid by the insured person including interest, plus a premium of % per year from the age of 0, up to a maximum of 00%. This excludes any additional savings contributions pursuant to Art. 7 par. 8. The interest rate is the same as the BVG interest rate (see Annex 5). Art. para. is reserved. BVG retirement assets Purchases by employer BVG retirement assets pursuant to Art. 8 FZG: The termination benefit equals the accrued retirement assets as at the date of departure pursuant to the BVG. 5 The share of the purchase sum paid by the employer is deducted from the vested benefits upon departure. The deduction is reduced by a tenth of the amount paid for every contribution year. The unused portion is allocated to the employer contribution reserve. 0 Pension fund regulations 0 January 07