Regulatory Alerts2022-05-25
Added · Updated
Minimum Yield Regulation
The Austrian Financial Market Authority (FMA) issued this regulation to define the calculation of minimum yield, deficits, and reference values for pension companies under Article 2 para. 4 of the Pensionskassen Act (PKG). It specifies detailed methodologies for determining monthly yield, assets, and performance, alongside formulas for calculating TARGET and ACTUAL values based on government bond yields and average monthly performance over 60 months. The regulation mandates individual deficit calculations for beneficiaries if the ACTUAL value is lower than the TARGET value, outlining how these deficits or subsequent reference values are credited from the Pensionskasse's own funds, with auditing actuaries responsible for verifying compliance.