New Actuarial Bases for Provisions and Pension Funds: AVÖ 2018-P
This article is only available in German.
The actuarial association is developing new biometric actuarial bases (mortality tables) for pension insurance. The new AVÖ 2018-P biometric actuarial bases for pension insurance are expected to be published at the end of July this year. These tables will replace the AVÖ 2008-P Pagler & Pagler tables currently in use.
Mortality improvements over the past 10 years and changes in marriage probabilities are expected to have a more substantial impact on pension provisions and pension fund benefits.
The impact on severance payment provisions and long-service award provisions will be small.
Under AFRAC Statement 27 on employee benefit provisions (UGB), the additional expense arising from the change in tables must be recognised in profit or loss in the current financial year. For tax purposes, the additional expense must be spread over three years.
Under IAS 19, the resulting actuarial losses (remeasurements) are recognised in OCI. We will continue to report on progress in the development of the new actuarial bases.
Source: AVOE Newsletter #2 May 2018, AVÖ General Meeting
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