Regulatory Alerts2019-09-27
Regulation on Calculation Parameters for Pensionskassen
The Austrian Financial Market Authority issued this regulation to establish maximum permissible percentages for the assumed interest rate and technical surplus in Pensionskasse contracts. It sets the general maximum interest rate at 2.00 percent and technical surplus at 4.00 percent, while requiring the latter to exceed the former by at least one percentage point and mandating prudent parameter selection to safeguard obligations against adverse market developments. The rules apply to new beneficiaries and contracts concluded after June 2016, with transitional provisions adjusting the limits for security-oriented insurance retirement funds until December 2016 and a 2019 amendment extending the updated rates to post-2019 contracts.
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