An amendment to the Rechnungsparameterverordnung (Regulation on Calculation Parameters) for Pensionskassen (pension companies) has been published in the Federal Law Gazette II no. 24/2011 on 27 January 2011 and will enter into force on 1 July 2011. As a result of the amendment, the maximum assumed interest rate will be reduced to 3.0%, from the current level of 3.5% for defined contribution pension commitments and from 5.0% for defined benefit pension commitments. The technical surplus, currently 5.5% for defined contribution pension commitments and 7.0% for defined benefit pension commitments, will also be reduced, to a level of 5.0%.
These rate reductions are required to be applied to pension company contracts which are concluded for the first time after 30 June 2011. With this step the FMA is responding to the situation on the capital markets, in a manner similar to reducing the maximum interest rate for life assurance, in order to ensure the return on investment while maintaining the highest level of security for the beneficiaries’ invested assets.
Klaus Grubelnik (FMA Media Spokesperson)
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