Solvency Rules of Earnings-related Pension Providers to be Reformed

The regulations about the calculation of the solvency limit of earnings-related pension providers and the decentralisation of investments will be reformed. The acts will come into force as of the beginning of 2017. In the calculation of the solvency, essential investment risks will be taken into account more comprehensively than currently.

When a pension provider lowers its solvency limit, it will have to separately identify the risks relating to each investment. The act will regulate a risk categorisation, according to which the risks will be taken into account. One investment may be associated with several risks.

The expected return and the dependency between various risk factors will also be taken into account.

The new regulations will apply to all earnings-related pension insurance companies, industry-wide pension funds, company pension funds, the Seafarer’s Pension Fund and, in part, to Mela.