Regulatory Alerts2022-05-25
Regulation on the Provision for Administrative Expenses 2013
The Financial Market Authority of Austria issued this regulation to establish uniform criteria for pension companies to calculate and manage provisions for administrative expenses incurred after retirement begins. It mandates that these provisions be determined using internationally recognized actuarial procedures or the entry age normal method, with specific rules for unit cost calculations and standard cost defaults. The text further requires pension funds to balance any underfunding or overfunding resulting from calculation errors or regulatory changes over a maximum period of ten years.
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