Regulatory Alerts2014-10-06
Regulation on the Additional Allocation to the Volatility Reserve
The Financial Market Authority of Austria issued this regulation to define the calculation parameters for additional allocations to the volatility reserve under the Pensionskassen Act. The rules mandate that allocation volumes must respect minimum interest rates, past pension adjustments, historical yield allocations, and specific correlations with technical surplus, existing reserves, and future capital market yield expectations. The regulation entered into force on 1 January 2013 to ensure steady benefit adjustments and security-oriented risk management for pension funds.
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