Regulations J. Safra Sarasin Vested Benefits Foundation August 2015
Regulations Regulations Pursuant to Article 2 of the bylaws of the J. Safra Sarasin Vested Benefits Foundation, Basel (hereinafter referred to as «the Foundation»), the following regulations are issued: For ease of comprehension, all references to persons always apply to either gender. The term «spouse/partner» as used in the text refers both to married persons and to registered partners as defined in the Swiss Federal Registered Partnerships Act (PartG). A General provisions Article 1 Purpose The Foundation offers compulsory and non-compulsory pension cover in the area of occupational pension funds. To this end, it accepts termination benefits or vested benefits on the account holder s instructions. Article 2 Purpose of the regulations These regulations govern the organisation and management of the Foundation and rights and obligations of the account holders vis-à-vis the Foundation. Article 3 The pension account holder The account holder opens a vested benefits account with the Foundation on signature of the opening application. The Foundation accepts termination benefits or vested benefits in favour of account holders, who leave their employment before they can claim their pension entitlement and who are not joining a new pension plan (i. e. their termination benefit or vested benefits cannot be transferred to a new pension plan) or who still have vested benefits left over when joining a new pension plan after buying into full statutory benefits. The Foundation accepts contributions from other institutions that maintain pension cover if the beneficiary account holder wishes. B Organisation of the Foundation Article 4 Board of Trustees In accordance with the deed of foundation, the Board is responsible for managing the Foundation. It is made up at least of four members appointed by the founder. The Board elects the Chairman and vice-chairman from among its members. Otherwise, the Board decides on its own composition. The Board will meet as required at the invitation of the Chairman. Each member is entitled to request the Chairman in writing to call a meeting of the Board. The Board meets at least once a year. The term of office for the Board is three years. The Board will be quorate if the majority of its members are present. Resolutions are passed by the majority of votes cast by the members present. The Chairman also has a vote. In the event of a tied vote, the Chairman s vote will count as double. Resolutions may be passed by circular letter, unless a member calls for oral discussion. All resolutions must be recorded in a set of minutes to be signed by the Chairman and the Minutes Secretary. The Board transacts all of the Foundation s business, including in particular the management of its assets and ultimately takes decisions on all matters relating to the Foundation in accordance with statutory requirements, unless these regulations provide otherwise. In cases where this is justified, it may take decisions that depart from these regulations while safeguarding the beneficiary s rights and complying with the statutory requirements. It designates the directors, managers and special committees. The Board can allocate specific tasks to the directors, managers or special committees, in particular an investment committee. The Board delegates the management of day-to-day business to the directors and managers as described in Article 5 below. It lays down the rules of procedure for the investment committee and the relevant investment guidelines for asset management. Regulations 3
Article 5 Management The Board may also call in third parties, who do not have to be members of the Board, to manage the Foundation. Day-to-day business is transacted by the directors and managers under the supervision of the Chairman of the Board. The director s main responsibility is to implement the decisions taken by the Board in cooperation with the managers. The director is in charge of the managers and supervises their activities. The Board directs and designates the persons who are authorised to represent the Foundation and determines the method of granting signing authority. Article 6 Auditor The Foundation appoints an auditor to perform the annual audit of the running of the business, the accounting system and asset position. The auditor is appointed for one financial year at a time. Article 7 Recovery of costs The Foundation s administrative costs are recovered: a) by contributions from the founder company; b) by a contribution to costs from the account holder; c) by using the Foundation s free assets. To effect the advance withdrawal or pledge of funds from the pension to purchase a home for the account holder s own use, the Foundation will charge an additional processing fee of CHF 300 (as at 1 January 2007). Article 8 Financial year The Foundation s financial year is the calendar year. The accounts are closed on 31 December of each year and must be submitted to the appropriate regulatory authority after approval by the Board and audit by the auditor. C Account management Article 9 Separation of assets/information An individual vested benefits account is maintained for each account holder for the purpose of maintaining pension cover. The transferred termination benefit or vested benefits are credited to this account. This means that the compulsory assets as laid down in the LPP/BVG are specifically kept separate. When a vested benefits account is opened, the account holder or the former pension plan must provide the Foundation with a statement containing details of the termination benefit or vested benefits. The vested benefits account is credited with: the transferred termination benefit or vested benefits; any contributions from employers or other institutions that provide for the maintenance of pension cover; divorce settlements contributed; interest; proceeds from the sale of individual investments. The vested benefits account is debited with: transfers to other pension plans; withdrawals by the account holder in accordance with statutory regulations; advance withdrawals in connection with the promotion of home ownership; divorce settlements paid out; the sum paid to purchase individual shares; the account holder s contribution to costs as described in Article 7. On 31 December of each year, a statement of assets is prepared for each account holder to provide information on the balance of the vested benefits account. The following account details are also shown: status of retirement assets pursuant to the LPP/BVG; status of vested benefits capital at age 50; status of vested benefits on date of marriage or on entry into force of the Swiss Law on Vesting in Pension Plans (FZG). The Foundation will on request inform the account holder of the amount available for use in connection with the promotion of home ownership. The Foundation will on request provide account holders with further information in accordance with regulatory requirements. Each account 4 Regulations
holder is entitled to request all of his personal data held by the Foundation and, if necessary, to correct it. Article 10 Interest payable The Board sets the interest rate at which interest is to be paid on vested benefits accounts in accordance with statutory requirements. The contributions will attract interest at a competitive rate with effect from the value date. The interest is credited to the account holder s account on 31 December of each year and added to the pension assets, to which further interest is added. Article 11 Transferability In accordance with statutory requirements and the agreements between the account holder and the Foundation, the account holder is entitled at any time to transfer the pension assets to a pension fund or another vested benefits foundation or form of maintaining pension cover. If the account holder joins a new pension plan, he must inform the Foundation accordingly without delay. In this case, the Foundation must transfer the vested benefits capital to the new pension plan. If part of the vested benefits capital remains after the account holder has bought into full statutory benefits, he can transfer this capital to the Foundation. Article 12 Investment of the Foundation s assets/investment of individual assets The Foundation s assets will be invested by the Board in accordance with the relevant legal requirements. The account holder s contributions will be invested by the Foundation as interest-bearing deposits. Where individual assets reach a specific value, to be determined by the Board, the account holder may purchase shares in a collective securities portfolio or, in accordance with statutory regulations, his own securities. Details are set out in the appendix to these regulations, entitled «Securities investment». Article 13 Entitlement to the individual pension benefits The account holder has the right to access the benefits on reaching the age limit (LPP/BVG retirement age or not more than 5 years previously). A later pay-out is possible for up to 5 years after reaching the age limit. In addition, the account holder can use the pension benefits for the purchase or construction of residential property for his own use, the acquisition of an interest in residential property for his own use or for the repayment of a mortgage loan. This option can only be exercised once every five years and requires the written consent of the account holder s spouse or partner. In addition, premature termination is only possible in the following cases: a) where the account holder receives a full disability pension from the Swiss social security administration and there is no additional insurance cover for the disability risk; b) where the account holder uses the pension benefits to purchase benefits from a tax-exempt pension plan or claims further benefits from another vested benefits foundation; c) where the account holder leaves Switzerland permanently; d) where the account holder becomes self-employed and is no longer covered by a compulsory occupational pension fund; e) where the pension benefits fall below the account holder s annual pension contribution. Married account holders and registered partners must procure the written consent of their spouse/partner in order to receive the payment described in Article 13 c) to f). In this case, the signature of the spouse/partner must be authenticated (notary, municipality). Payment of the pension benefits is subject to taxation in accordance with the requirements (Swiss federal capital gains tax, income tax, withholding tax, etc.) in force on the date of payment. On payment of the pension benefits, the Foundation fulfils its tax liability by notifying the tax authorities of the taxable payment and where appropriate deducts withholding tax. Article 14 Pension benefits/beneficiaries The pension benefits will consist: of the pension assets when retirement age is reached; in the case of disability (as defined in Article 13, subsection 2 of the Regulations), of the pension assets and additionally where risk insurance has been arranged of the right to claim insurance benefits; in the case of death, of the pension assets and additionally where risk insurance has been arranged of the right to claim the relevant insurance benefits; For the maintenance of pension cover, the following are deemed to be beneficiaries: Regulations 5
a) the event of survival, the account holder himself; b) after his decease, the following persons in the order below: 1. the survivors as defined in Articles 19, 19a and 20 of the LPP/BVG; 2. natural persons for whose maintenance the deceased was primarily responsible or a person who was co-habiting with the account holder for an unbroken period of at least five years prior to his death or who has to provide for the maintenance of one or more joint children; 3. any children of the deceased who do not satisfy the condition laid down in Article 20 of the LPP/BVG, his parents or siblings; 4. any other legal heirs, excluding public bodies. The account holder can determine the entitlements of the beneficiaries and add the persons referred to in subsection 2 to the group of people referred to in paragraph 1, letter b, number 1. Details of the beneficiaries must be lodged with the Foundation in writing by the account holder. Where the account holder does not determine the entitlements of beneficiaries in the same group, the Foundation will divide the pension benefits equally among the persons concerned. D Relations between the account holder and the Foundation Article 15 Assignment, offsetting and pledge The individual pension benefits account cannot be assigned, offset against other debts or pledged before it becomes payable. The foregoing is subject to the exceptions set out in the Swiss Federal Law on the Encouragement of the Use of Pension Assets for Home Ownership. The written consent of the account holder s spouse or partner is also a mandatory requirement in these cases. Where the matrimonial property regime is dissolved as a result of divorce or other circumstances, the pension benefits may be assigned to the spouse or partner in whole or in part by the account holder or the courts. In this case, the court will officially notify the Foundation of the amount to be transferred together with the necessary details on the maintenance of pension cover. The Foundation will grant the account holder the option of buying himself in again as part of the transferred portion of his technical reserve. If the account holder does not buy himself in, the transfer will result in a proportional reduction in relation to the amount withdrawn in advance of the benefits when they are claimed. The Foundation will inform the account holder of new, reduced benefits at the time of the transfer. Any gaps in cover can be insured additionally outside the Foundation. Article 16 Insurance The Foundation does not provide any insurance of its own to cover the risks of disability and death. It will on request provide details of an insurance company specialising in this area and, if the account holder wishes, obtain a suitable quotation. Article 17 Account holders personal details Account holders will notify the Foundation when any changes occur in relevant parts of their relationship with the Foundation or in their postal address. The Foundation does not accept any liability for the consequences if a notification is incomplete, delayed or inaccurate. All correspondence to the Foundation must be addressed to its domicile. The Foundation sends any communications and documents for the account holder to the latter s last known address. 6 Regulations
Article 18 Liability The Foundation accepts no liability for consequences arising from the fact that an account holder has failed to fulfil his contractual and regulatory obligations. Article 19 Amendments The Board may amend these regulations in order to safeguard the vested rights of account holders. The Foundation will notify account holders of any significant amendments to the regulations or the legal framework in a suitable form. Article 20 Gaps in the regulations Where these regulations make no allowance for specific cases, the Board will agree on a provision that is consistent with the object of the Foundation. Article 21 Disputes, place of jurisdiction In the event of disputes concerning eligibility for benefits, the Foundation will be entitled to deposit the pension benefits as specified in Articles 96 and 472 et seq. of the Swiss Code of Obligations. Article 22 Entry into force These regulations enter into force on 7 June 2007 and supersede all previous regulations. Change as per the decision of the Foundation Council of 26 September 2013 and entry into force on 1 January 2014. Adaptation of the Foundation name in accordance with decision of the Foundation Council of 3 June 2015 and entry into force on 1 August 2015. Basel, August 2015 Regulations 7
Appendix: Securities investment Appendix: Securities investment Pursuant to Article 12 of the bylaws of the J. Safra Sarasin Vested Benefits Foundation, the following provisions are issued: Article 1 Purpose The account holder has the option of investing some or all of his pension benefits in shares in the relevant LPP investment funds of the J. Safra Sarasin Investment Foundation (hereinafter referred to as SAST). Whole shares or fractions can be acquired. The SAST is an investment foundation subject to the guidelines of the Swiss Federal Ordinance on Occupational Retirement, Survivors and Disability Pension Plans (OPP/BVG 2). The co-founder is the J. Safra Sarasin Vested Benefits Foundation (hereinafter referred to as Foundation). Article 2 The shares The Foundation acquires in its name and on behalf of the account holders the appropriate shares in the LPP investment funds in accordance with the account holder s instructions. The shares will be managed in a custody account allocated to the account holder s account. The account holder s shares are based on the Foundation. The shares do not have a fixed nominal value and do not take the form of physical securities. The same regulatory provisions apply to the shares as to the individual pension benefits accounts. The part of the pension assets invested in shares does not entitle the account holder either to a minimum interest rate or to the preservation of capital value. The investment risk is borne by the account holder. holder s Vested Benefits account during the term of the pension agreement. Article 4 Valuation The value of a share is determined by dividing the asset value of the total assets available at the time by the number of existing shares. This valuation takes place on the specified valuation date and at the end of the financial year. The purchase is settled at the acquisition price set on the subsequent valuation date and the sale is settled at the last redemption price set before the account was credited. Article 5 Closure of the account The sale of the available SAST shares will automatically result in the closure of the account. Article 6 Amendment of the regulations The Foundation Board may amend these supplementary regulations in order to safeguard the vested rights of account holders. Account holders will be notified in writing of any significant amendments in a suitable form. Article 7 Other provisions In all other respects, the regulations of the Foundation and the SAST regulations will apply as appropriate. Basel, August 2015 Article 3 Purchase and redemption of shares The account holder can purchase and redeem shares on the dates specified by the Board (except for the first and last week of the financial year). The account holder must submit buy or sell orders to the Foundation in writing. Whole shares or fractions are traded. When SAST shares are purchased, a fee is charged and debited from the Vested Benefits account. The purchase and redemption prices reflect the net asset value. The return proceeds will at all events be credited to the account Appendix: Securities investment 9
J. Safra Sarasin Vested Benefits Foundation Elisabethenstrasse 62 P. O. Box 4002 Basel Telephone + 41 (0)58 317 49 48 Fax + 41 (0)58 317 48 96 www.jsafrasarasin.ch/vorsorge rl361ch0715en