Notice No. 1/2026

Notice No. 1/2026 Published in: DR, 2nd Series, Part E, No. 43 of 03-03-2026 Mod. 99999939/T – 01/14

Index Text of the Notice Text of the Notice

Notice No. 12/2001 defines the minimum reference framework for the coverage of pension and survivorship liabilities to be observed by credit institutions and financial societies, which is complemented by Instruction No. 4/2002.

The aforementioned Notice and Instruction have been subject to several amendments since their issuance in order to adapt them to the evolution of accounting and prudential frameworks, as well as to the scope of liabilities that form part of the sphere of credit institutions and financial societies.

In particular, the recognition of pension and survivorship liabilities and the annual increase of such liabilities is carried out in accordance with the applicable accounting standards in accordance with Regulation (EC) No. 1606/2002 and Notice No. 5/2015 of the Bank of Portugal.

Having elapsed a period of 10 years since the last amendment to the aforementioned Notice and considering the developments at the level of the international regulatory framework, as well as the experience acquired in the application of Notice No. 12/2001 and Instruction No. 4/2002, it is necessary to review these regulations and systematize the provisions that remain in force and the information reporting requirements that are deemed to be maintained, by issuing a new Notice and simultaneously revoking the aforementioned ones.

In these terms, in the perspective of continuity and stability, the review in question does not aim to alter the basic rules of the previous framework that must be observed by credit institutions and financial societies, specifically: (i) the scope of the set of liabilities to which it applies, which remains unchanged, (ii) the maintenance of the requirement to fund liabilities through pension funds; (iii) the maintenance of the requirements regarding the funding levels of the liabilities; (iv) with reference to the end of each financial year, the maintenance of the requirement to carry out an actuarial assessment and prepare an actuarial report, for the purpose of verifying compliance with the applicable standards in this area, to be submitted to the Bank of Portugal upon request; and (v) the requirement to disclose a set of information in the notes to the annual accounts.

This Notice, which revokes and replaces Notice No. 12/2001 and Instruction No. 4/2002, was subject to public consultation, in accordance with Article 101 of the Administrative Procedure Code, and the Insurance and Pension Funds Supervisory Authority (ASF) was consulted.

Notice No. 1/2026 of the Bank of Portugal Mod. 99999939/T – 01/14

Thus, the Bank of Portugal, using the competence conferred upon it by letters c) and e) of paragraph 1 of Article 99, by paragraph 1 of Article 115, and by paragraph 2 of Article 120 of the General Regime of Credit Institutions and Financial Societies, approved by Decree-Law No. 298/92 of 31 December, determines the following:

Article 1. Subject Scope This Notice is applicable to credit institutions and financial societies, hereinafter referred to as "institutions".

Article 2. Object This Notice regulates the pension and survivorship liabilities arising from defined benefit plans of the institutions, including liabilities arising from employer contributions to the Social Medical Assistance Services that apply to pension and survivorship benefits ("post-employment medical care liabilities") and "liabilities related to death benefits" (hereinafter "liabilities" or "pension and survivorship liabilities"), specifically: a) The modality and minimum funding levels to be observed; b) The information reporting requirements for the purpose of regular monitoring of those liabilities and the requirements of this Notice; c) Risk management policies; and d) Disclosure requirements.

Article 3. Funding Modality Institutions must ensure the funding of their liabilities referred to in the previous article exclusively through pension funds, safeguarding: a) The existence of insurance contracts, subscribed prior to the entry into force of Notice No. 6/95, for the coverage of pensions already in payment or of insurance or reinsurance contracts subscribed under the applicable legislation on insurance contracts and pension funds; and b) The existing coverage modality as of 31 December 2025, regarding post-employment medical care liabilities and liabilities related to death benefits.

Article 4. Funding Levels

1. Without prejudice to compliance with the minimum solvency levels determined by the Insurance and Pension Funds Supervisory Authority (ASF), the present value of past liabilities, calculated in accordance with the applicable accounting standards, must be covered in the following terms: a) The present value of pension liabilities in payment, including any liability for deferred survivorship pensions, must be fully funded at the end of each financial year; and b) The present value of past service liabilities for active employees must be funded at a minimum level of 95%.
2. For the purposes of this Notice, it is understood that the present value of past liabilities is fully funded when the value of the pension fund, calculated in accordance with the applicable regulations, is sufficient to ensure its coverage, taking into account the possible existence of coverage of liabilities through insurance or reinsurance contracts, as provided for in Article 3.

Article 5. Actuarial Assessment and Report

1. Without prejudice to the legislation applicable to pension funds, the following must be prepared, with reference to the end of each financial year, on an individual basis: a) An actuarial assessment, for each defined benefit plan, for the purpose of verifying compliance with the standards of this Notice, with a supporting memorandum containing the actuarial and financial assumptions and the calculation methods used, indicating any changes in criteria and their respective impacts on the present value of the liabilities; and b) An actuarial report, accompanied by a declaration from the responsible actuary.
2. The actuarial report and the declaration from the responsible actuary referred to in the previous paragraph correspond to the Report of the Responsible Actuary and its respective annexes, prepared in accordance with the requirements of Regulatory Standard No. 6/2024-R of 20 August, when the respective submission to the ASF is applicable under that Regulatory Standard.
3. The report referred to in the previous paragraphs must include adequate detail of the post-employment medical care and death benefit liabilities, demonstration of compliance with the requirements provided for in Article 4, as well as any other relevant information regarding the assumed liabilities, specifically in its Chapter 9, when not already included in other chapters of the aforementioned reports.

Article 6. Risk Management Policies Without prejudice to the applicable legal and regulatory provisions, including the sectoral standards applicable to pension fund management entities, institutions must ensure adequate risk management rules to which the institution is or may become exposed, specifically in the following areas: a) Contributory and pension fund funding policy; b) Investment strategy appropriate to the structure of the pension fund's liabilities; and c) Balance sheet risk management policy of the pension fund.

Article 7. Disclosure Requirements Without prejudice to the provisions of the applicable accounting standards, institutions must disclose in the notes to the annual financial statements, on an individual and consolidated basis, where applicable, the following information: a) Indication of the name of the pension fund management entity; b) Indication, by defined benefit plan, of the number of participants, retirees, and pensioners; c) Breakdown of the present value of assumed liabilities for pension and survivorship benefits, namely the value of past liabilities - for pensions in payment and for past service of active employees - and the value of liabilities for future services; d) Breakdown of pension fund assets by asset type, indicating the existence of real estate used by the institution or by companies with which it is in a group relationship, financial instruments issued by them, or equivalent situations; e) Breakdown of the amount recognized as the period cost, related to the coverage of pension and survivorship liabilities, in accordance with the components provided for in the applicable accounting standards, including the cost of early retirement programs; f) Contributions delivered to the pension fund during the period, specifically current contributions and extraordinary contributions, with specification of the nature of the assets delivered, as well as participant contributions; g) Main actuarial and financial assumptions used, including the tables used, specifically mortality, disability, and turnover tables, and the type of decrements to be used; h) Main values actually verified during the period, namely the return rate of the pension fund value, salary growth rate and other benefits, pension growth rate, mortality, disability, and turnover; i) In the case of the existence of insurance contracts intended to cover the liabilities provided for in this Notice, a general description of the terms of these contracts, the employees covered, the liabilities irrevocably assumed by the insurance company, and information on whether this is a company in a group relationship with the institution.

Article 8. Special Rules

1. Institutions that, within the framework of the coverage of pension and survivorship liabilities, use schemes that do not fall under the general provisions of this Notice must request guidance from the Bank of Portugal for the purpose of their treatment, on a uniform and coherent basis with the rest of the established discipline.
2. The Bank of Portugal may authorize that the coverage of liabilities for pension and survivorship charges be carried out outside the conditions fixed in this Notice, upon duly justified request from the institutions.

Article 9. Information Duties Institutions make available to the Bank of Portugal, upon request, the actuarial report referred to in letter b) of paragraph 1 of Article 5, accompanied by the declaration of the responsible actuary for each defined benefit plan relating to pension and survivorship liabilities, which may include other elements considered necessary for its assessment.

Article 10. Repealing Standard The following are repealed: a) Notice No. 12/2001; b) Instruction No. 4/2002.

Article 11. Entry into Force This Notice enters into force on the day following the date of its publication.

24 February 2026 – The Governor, Álvaro Santos Pereira.