Magic Keyboard power issue

I have a magic keyboard on the latest version of iMac. If I look at the bluetooth icon at the top of the screen, the keyboard is not connected by bluetooth... I assume this is because I have a charging cable to the keyboard. But, same condition I look at bluetooth in the settings and low and behold it is connected to my bluetooth. Also, the power switch on top of the keyboard when turned off actually engages the Bluetooth connection at the top of the screen. Otherwise the switch is like one of those light switches we all have or have had that does nothing when flipped. Is that actually a power switch or some type of bluetooth switch, or, on the paranoid side, is by keyboard function being controlled by........aliens. To put it mildly. Thanks for any advice and I did read the instructions on the original set up, but thought this was one I'd throw out there to see what floated back.