Assumed Interest Rate

The assumed interest rate (the maximum permissible interest rate for new Pensionskasse contracts is determined in the FMA’s Regulation on Calculation Parameters for Pensionskassen) is the interest rate that is based on the calculation of the expected benefits or the necessary contributions and therefore constitutes an anticipated return from investment. Where the return from investment for an IRG is below the assumed interest rate and there are therefore otherwise no means available for shoring up the investment result, such as e.g. the volatility reserve, then the pension benefits must be reduced.