Regulatory Alerts2022-05-25
Financial Market Authority Minimum Yield Regulation (ME-V)
The Austrian Financial Market Authority promulgated this regulation to standardize minimum yield calculations for pension funds under the Pensionskassen Act. It requires institutions to determine TARGET and ACTUAL values using 60-month government bond yields and historical performance, thereby establishing individual beneficiary deficits or reference values. These amounts must be annuitized and credited as annual pensions from the fund’s own funds, with auditing actuaries verifying compliance across all investment and risk-sharing groups.
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