Regulation on the Additional Allocation to the Volatility Reserve

All English translation of the authentic German text serves merely information purposes. The official wording in German can be found in the Austrian Federal Law gazette (Bundesgesetzblatt; BGBl.) Regulation of the Financial Market Authority (FMA) on the additional allocation to the volatility reserve (ZZV; Zusätzliche Zuweisung zur Schwankungsrückstellung) Based on Article 24a para. 3 of the Pensionskassen Act (PKG; Pensionskassengesetz), Federal Law Gazette No. 281/1990, last amended by the Federal Act, Federal Law Gazette I No. 54/2012, the following shall be determined by regulation:
General provisions
Article 1 The additional allocation to the volatility reserve in accordance with Article 24a para. 3 PKG
shall be carried out with due regard to the pension commitments made in the respective investment and risk sharing group.
Article 2 In the case of an additional allocation to the volatility reserve, the assumed interest rate must
not be undercut.
Steady pension adjustments for beneficiaries (recipients)
Article 3 The volume of the additional allocation to the volatility reserve shall take the pension
adjustments made in the past into account.
Steady allocation of yields to beneficiaries (entitled)
Article 4. The volume of the additional allocation to the volatility reserve shall take the allocation of
earnings carried out in the past into account.
Level of the assumed interest rate and amount of the technical surplus
Article 5 The volume of the additional allocation to the volatility reserve shall take the positive
correlation with the level of the assumed interest rate and the technical surplus into account. Features of the security-oriented IRG
Article 6 In the case of a security-oriented IRG pursuant to Article 12a PKG, particular consideration
shall be given to the volatility of the technical result when carrying out the additional allocation to the volatility reserve and calculating its volume. Volume of the volatility reserve
Article 7 The volume of the additional allocation to the volatility reserve shall take the negative
correlation with the level of the existing volatility reserve into account.
Capital market situation
Article 8 The volume of the additional allocation to the volatility reserve shall take the positive
correlation with the level and probability of any reduced yields expected in the future into account. Entry into force
Article 9 This Regulation shall enter into force on 1 January 2013.