Order On Financial Reports For Labour Market Supplementary Pension And Labour Market Supplementary For Pensioners

Original Language Title: Bekendtgørelse om finansielle rapporter for Arbejdsmarkedets Tillægspension og Supplerende Arbejdsmarkedspension for Førtidspensionister

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Overview (table of contents)

Chapter 1

scope


Chapter 2

General provisions


Chapter 3

Provisions for special items in the balance sheet


Chapter 4

information


Chapter 5

Management's


Chapter 6

Consolidated and Interim


Chapter 7

Penalties and commencement and transitional provisions





Summary of Annex


Appendix 1

Discount rates by measuring the obligations. See § 8


Appendix 2

Specification of assets and their return, see. § 11


Appendix 3

Rules for completing the table in Annex 2


Appendix 4

Specification of investments, including investments in unit trusts,. § 12 portfolio analyzed by industry and regions


Appendix 5

Rules for completing the table in Annex 4


Appendix 6

Form for sensitivity information, see. § 19


Appendix 7

Five-year summary of financial highlights, see. § 10


The full text
Order on financial reports for Labour Market Supplementary Pension and Labour Market Supplementary for Pensioners
Pursuant to § 17 r paragraph. 8, § 25 m and § 32a paragraph. 2 of the Act on Labour Market Supplementary referred. Legislative Decree no. 942 of 2 October 2009 as amended by Act no. 1263 of 16 December 2009, provides:

Chapter 1

Scope

§ 1. This Order shall apply the Labour Market Supplementary Pension and Labour Market Supplementary for Pensioners in the hereafter referred to as ATP and SUPP.

§ 2. For each financial year and published an annual report and an interim respectively ATP and SUPP. The annual and half-yearly report for ATP must contain consolidated see. § 25.

PCS. 2. §§ 25 a, 25 b, 25 h, 25 j, 25 k and 25 l Act on the Labour Market Supplementary shall not apply to the interim report and any quarterly reports.

§ 3. Accounts, drawn up solely for his own use, is not an annual report or interim report under this Order. Is presented accounts which is not an annual report or interim report under this order, it must not be described as an annual report or interim report, and it must be both in form and content appear, so it can not be confused with an annual report or interim report presented in accordance with this Order .

Chapter 2

General provisions

§ 4. The annual and interim reports, including consolidated financial statements shall be prepared in accordance with international accounting standards approved pursuant to European Parliament and Council Regulation (EC) no. 1606/2002 of 19 July 2002 on the application of international accounting standards.

PCS. 2. The following options in the international accounting standards covered by paragraph. 1 can not be used:

1) the revaluation model in measuring property, except for owner-occupied properties, see. No. 2, (IAS 16)

2) the cost model in measuring owner-occupied property (IAS 16)

3) measuring the cost of investments in subsidiaries, associates and jointly controlled entities (IAS 27)

4) revaluation model in measuring intangible assets (IAS 38)

5) classification of financial instruments as "held-to-maturity investments" (IAS 39)

6) classification of financial instruments as "assets available for sale" (IAS 39)

7) the cost model in measuring investment properties (IAS 40) and

8) measurement at amortized cost of loans and receivables and financial liabilities that meet the conditions for using the fair value option under IAS 39.

PCS. 3 pieces. 2 shall not prevent investments that do not have a quoted market price and whose fair value can not be reliably measured are measured at cost in accordance with IAS 39, para. 46, point c.

Chapter 3

Provisions on special items in the balance sheet

§ 5. The balance-sheet liabilities side in ATP's financial statements must contain an entry called Guaranteed benefits to be calculated in accordance with the provision basis by ATP reported to the Financial Supervisory Authority.


§ 6. The balance-sheet liabilities side in ATP's financial statements must contain an entry called claims provisions corresponding to unpaid, overdue pension payments to ATP's members. The amount must include an estimate of retirement benefits for not yet reported events that would be due in the financial year if the case had been reviewed and finalized.

§ 7. The balance-sheet liabilities side in ATP's financial statements must contain an entry called bonus potential to be calculated as the amount that corresponds to the book value of total assets related to ATP less Guaranteed benefits, claims provisions and the sum of the carrying value of ATP's other commitments.

§ 8. For discounting of obligations can be applied discount rates calculated in accordance with Annex 1

PCS. 2. The rules in Annex 1 be used for the electronic financial reporting to the FSA, see. § 25 o Act on Labour Market Supplementary Pension.

PCS. 3. Any differences between the obligations of the Annual respectively the interim report and the corresponding amounts as they are electronically reported to the Financial Supervisory Authority, must be disclosed and explained.

PCS. 4. Should the vote after paragraph. 3 is not the annual respectively the interim report, the referendum simultaneously with the publication of the annual respectively interim report be publicly available, eg on the ATP website. It should of annual respectively interim report indicated how the public can become familiar with the vote.

Chapter 4

Information

General

§ 9. In addition to the information required by the Commission-approved international accounting standards, the financial statements should the additional supplementary information set out in this chapter.

PCS. 2. Unless otherwise stated, the provisions of this chapter apply to the annual report of respectively ATP and SUPP and the consolidated financial statements.

PCS. 3. The information to be provided pursuant to this chapter shall be contained in a separate part of the annual report, there are clearly defined and described as 'notes'. If a disclosure requirements are complied by the fact that under the notes is given a reference to the information given in the management report or in other parts of the annual report that are not included in the financial statements, must reference be accurate and identify the relevant information in relation to other information that is not subject to disclosure requirements under this chapter. The required information is also covered in such cases the auditors in accordance. § 25 ki Act on Labour Market Supplementary Pension.

Five-year summary

§ 10. Financial statements must include a five-year summary of financial and operational data in accordance with Annex 7

PCS. 2. If the numbers in the five-year survey is not comparable, must as far as possible an adjustment of the figures. Lack of comparability or the restatement must be specified and duly substantiated.

PCS. 3 pieces. 1 and 2 shall not apply to the consolidated financial statements.

The balance

§ 11. The assets and their return shall be specified in accordance with the table in Annex 2, see. The rules for filling the table in Annex 3.

PCS. 2 pcs. 1 shall not apply to the consolidated financial statements.

§ 12. The percentage breakdown of the portfolio of investments, including investments in mutual funds, to be specified by industry and region in accordance with Annex 4, see. The rules of the table filling in Annex 5. If one or more columns containing only minor proportions, can the columns merged under an appropriate heading. If the fields in the row called "non-allocated" contains significant proportions must include an explanation.

PCS. 2 pcs. 1 shall not apply to the consolidated financial statements and apply only to the annual report of ATP.

§ 13. If the annual report is a list of all the companies which the Bank holds investments, and the size of these investments, indicate whether the public on request or otherwise have access to this information.

§ 14. Developments in guaranteed benefits in ATP must specify choosing:

1) Guaranteed benefits early.

2) Contributions (+).

3) Transferred to bonus potential (-).

4) Pension benefits (-).

5) Change due to updating of life (+/-).

6) Change due to change in discount rate (+/-).

7) Change resulting from bonus (+/-).

8) Changes due to unwinding (+).

9) Other changes (+/-).

10) Guaranteed benefits end (1-9).


§ 15. The services ATP paid, specified in the following items:

1) Private Pension (current).

2) Spouse Pension (current).

3) Private Pension (capitalized).

4) Spouse Performance (capitalized).

5) Child benefits (capitalized).

Income

§ 16. The total fee on a consolidated basis for the year to the audit firm conducting the statutory audit, and the audit firm's subsidiaries shall be disclosed. This information should be specified in the fee for the statutory audit of the financial statements, fees for other assurance services, fees for tax advice and fees for other services. For the first section. amounts shall be given the same amount in the previous financial year.

§ 17. The regulations of the ATP uses for sharing the realized profit to ATP's members and other beneficiaries see. § 18 of the Danish Labour Market Supplementary Pension shall be described. In this context the size of the realized profit for the financial year and the distribution of the amount specified.

PCS. 2. The bonus potential must be divided in a note to the part in accordance with the principles for bonus award that is reported to the Financial Supervisory Authority, could be used to increase the guaranteed benefits and the part that according to the declared principles should be detained as undistributed bonus.

§ 18. Information must be given on the average number of full-time employees during the year. Staff costs must be disclosed and specified respectively salary, pension, other social security costs and fees calculated on the basis of staff numbers or payroll.

PCS. 2. If the information on the remuneration policy and practices of Representatives, directors and other employees whose activities have a material impact on ATP`s risk profile, as required under the Executive Order on wage policies and disclosure requirements on remuneration in the Labour Market Supplementary and LD not contained in the annual report, indicate where this information can be found.

§ 19. The annual report shall include schematic information about sensitivity to risk in accordance with the table in Annex 6.

PCS. 2 pcs. 1 shall not apply to the consolidated financial statements and apply only to the annual report of ATP.

Chapter 5

Management Report

§ 20. The management report must

1) describe the ATP and SUPP's main activities

2) describe uncertainty about recognition and measurement, as far as possible with the sums,

3) describe the unusual conditions that may have affected the recognition or measurement, as far as possible with the sums,

4) report on developments in the ATP and SUPP's activities and financial affairs,

5) mention any important events that have occurred after the reporting period

6) describe the ATP and SUPP's likely future development including special assumptions and uncertain factors which management has based its description,

7) describe the ATP and SUPP's knowledge resources, if they are of particular importance for future earnings, and

8) describe the specific risks, including business and financial risks, such as ATP and SUPP can be affected by.

§ 21. The management report must describe the evolution of the financial year compared with the expected development according to the latest published annual report, or according to the latest in the year announced expectations, and justify deviations from it.

§ 22 management report must include mention of the bonus which may be attributed to ATP's members, including a discussion of the principles taken into account when determining the bonus allotment, taking into account the resources available.

§ 23. There must be informed of the managerial positions held by ATP`s board and management hold in other companies, except for managerial posts in ATP`s own 100 per cent. owned subsidiaries. Is the member of the leadership in both the other parent as one or more of its 100 per cent. owned subsidiaries, is the matter first section. Suffice it to disclose the name of that parent and the number of its subsidiaries, of which he is a member of management.

§ 24. ATP shall include a report on corporate governance, which includes the following:

1) Whether the ATP is subject to a corporate governance code, referring to the code ATP where appropriate subject.

2) Indication of where the no. 1 issue code is publicly available.


3) Indication of which parts of it in no. 1 shall Code, ATP departs from and the reasons if ATP has decided to waive parts of the code.

4) Indication of the reasons that ATP does not use it in no. 1 shall Code, if ATP has decided not to apply the Code.

5) Reference to any other codes of corporate governance that ATP has decided to use in addition to or instead of the no. 1 code referred to or ATP voluntarily use, stating the same information as in no. 2 and 3 indicated.

6) Description of the main elements of ATP`s internal control and risk management systems in relation to the financial reporting process.

7) Description of the composition of ATP`s governing bodies and their committees and their function.

PCS. 2. ATP to exclude statement in accordance with paragraph. 1 in the management report, the management report contains a reference to APT`s website where the report is published. Publication on ATP`s website assumes that ATP meets the requirements as provided for in DCCA notice of the publication of the report on corporate governance and corporate social responsibility on the company's website, etc. with the necessary changes.

§ 25. ATP should complement the management report with a statement of social responsibility at the corporate level, see. Paragraph. 2-4. By ATP`s social responsibility means that ATP voluntarily integrate, among other human rights, social, environmental and climatic conditions and the fight against corruption in its business strategy and business operations. ATP has no policies for community-liability should be disclosed in the management report.

PCS. 2. The statement shall contain information on:

1) ATP's social responsibility policies, including any standards, guidelines or principles of social responsibility ATP uses.

2) How ATP translates its CSR policies into action, including any systems or procedures.

3) ATP's assessment of what has been achieved as a result of ATP's social responsibility work for the year and ATP's possible future expectations.

PCS. 3. The statement shall be given in relation to the management report. ATP may instead choose to give statement:

1) in a supplementary report to the annual report provided. § 25 hi Act on the Labour Market Supplementary referred to in the management report, or

2) on the ATP website referred to in the management report.

PCS. 4. Have ATP produced a progress report in connection to the UN Global Compact and the UN Principles for Responsible Investment, ATP can not providing the information listed in paragraph. 1 and 2. ATP must disclose in the management report that it uses this exemption, and specify where the report is publicly available.

Chapter 6

Consolidated and Interim

§ 26. The consolidated financial statements, see. § 2 shall include ATP, SUPP and subsidiaries and other companies over which it exercises a controlling influence through its funds in ATP or SUPP.

§ 27 Interim Report, see. § 2 shall contain the income statement for the period 1 January to 30 June with comparative figures from the corresponding interim period last year and balance sheet. June 30 with comparative figures from the balance at the end of last year.

PCS. 2. If the interim report is unaudited, the auditors' report reproduced in its entirety in the report. The same applies if there is a review report from the auditor. If the interim report has neither been audited or reviewed, state that fact in the report.

PCS. 3. The interim report shall include a statement by the management that meets the requirements of § 25 c of the Act on the Labour Market Supplementary Pension.

PCS. 4. The interim report must be submitted to the Financial Supervisory Authority and the Ministry of Employment within 2 months of the half-year. The interim report must by the same date be publicly available, eg on the ATP website or by interested can get the interim report delivered or sent by contacting ATP.

Chapter 7

Penalties and commencement and transitional provisions

§ 28. Intentional or grossly negligent violation of §§ 2-7, § 8 paragraph. 2-4, §§ 9-27 fined.

§ 29. This Order shall enter into force on 30 January 2012 and will first apply to annual reports, which are submitted for annual periods beginning 1 January 2011.


PCS. 2. Executive Order no. 1307 of 16 December 2008 on the financial reports of the Labour Market Supplementary, Special Pension Savings Scheme and the Supplementary Labour for Pensioners repealed.

FSA, January 25, 2012
Ulrik Nødgaard
/ Flemming Petersen


Summary of Annex







Appendix 1: Discount rates by measuring the obligations



Appendix 2: Analysis of assets



Appendix 3: Rules for completing the table in Annex 2



Appendix 4: Specification of investments



Appendix 5: Rules for completing the table in Annex 4



Appendix 6: Form for sensitivity information



Appendix 7: Five-year summary of financial highlights







Appendix 1

Discount rates by measuring the obligations. See § 8












1.


Discount rates are described in this Part shall apply in connection with the discounting of liabilities, except in cases where liabilities are measured at amortized cost.



2.


If commitments are made in a currency other than Danish kroner, used discount rates set by the principles listed below. If the total proportion of liabilities for amounts in other currencies does not exceed 10 per cent. the balance can discount rates on Danish kroner be used.



3.


On each payment date applicable rate for discounting liabilities denominated in Danish kroner constructed from the following interest rate series calculated on the basis of end middle rates at the balance sheet date:





a)


Zero-coupon rates with maturities up to 30 years calculated on the basis of the most liquid fixed-income instruments (money market instruments, futures and interest rate swaps) expressed in EURO.





b)


Zero-coupon rates with maturities up to 10 years calculated based on Danish government bonds.





c)


Zero-coupon rates with maturities up to 10 years calculated on the basis of German government bonds.





The discount rate for each payment date is determined by the rate in (a) with the addition of the spread between interest rates (b) and (c).





For maturities longer than 10 years continued spread between yields (b) and (c) calculated by the maturity of 10 years.





For maturities longer than 30 years continued the 30-year discount rate.





For provisions relating to obligations covered by pension yield tax, reduced the discount rate by the tax rate under the Danish Pension Tax Act. For other provisions used a discount rate without any reduction of the tax rate.






In the FSA's website published daily (on working days) a table discount rates corresponding to maturities from 1 to 30 years with 1 year interval calculated based on the stated principles.





Discount rates for other maturities than those published in the table, calculated by linear interpolation, where the weights are determined based on the actual number of days between the published maturities and the desired maturity.







Appendix 2

Specification of assets and their return, see. § 11














carrying
value



Primo


Ultimo







net
investments


Return% before
tax on pension
and corporation



1.1.


Land and buildings directly owned







1.2.


Property Limited companies







1.


Land and buildings







2.


Other subsidiaries







3.1.


Listed Danish investments







3.2.


Unlisted Danish shares







3.3.


Listed foreign investments







3.4.


Unlisted foreign investments







3.


Other investments Total







4.1.


Government bonds (Zone A)








4.2.


Mort gage-credit-tions







4.3.


Index-linked bonds







4.4.


Credit bonds, investment grade







4.5.


Credit bonds, non investment grade and emerging market bonds







4.6.


Other bonds







4.


Bonds totaling







5.


Secured loans







6


Other financial investment assets







7.


Derivative financial instruments to hedge net change of assets and liabilities











Appendix 3

Rules for completing the table in Annex 2











1.


Lines in the chart that contains only insignificant amounts can be combined with other lines.



2.


In the column "Net Investment" Enter the total amount in the accounting period used to acquire the asset group minus the amount received from the sale of the asset group. This amount is mentioned with minus sign if the amount received from the sale exceeds the amount used for acquisitions.



3.


In the columns 'book value' shall be the total market value of the asset group respectively at the beginning and at the end of the year.



4.


In the column "Return% pa before tax on pension 'indicate the overall time-weighted returns in percent with one decimal place, in the accounting period has been achieved by the active group. The time-weighted returns are calculated in principle by the following formula



















where r T is the period total time-weighted return, and rt is returns in partial periods, bounded every time there is a payment to or from the portfolio. The time-weighted rate of return can be calculated approximated from the return on fixed sub-periods, for example. return per. month or a shorter period. The method used is disclosed in connection with the scheme.



5.


The returns included when calculating the return percentage, see. Section. 4 above, must be calculated before tax on pension expenses.



6


The value of fund units and shares in investment communities and derivatives are included in the individual lines after the underlying assets, as described. However, below. Investment Communities include limited partnerships and general partnerships, etc., created with the aim of creating a legal form of ownership of financial investments undertaken jointly with other investors.





The value of currency hedging instruments may be included in line 6, see. Section. 20 if the individual contract concluded in order to hedge / adjust the exchange rate risk on a portfolio of multiple asset classes. It should be separately disclosed in a note to return table where the value of currency hedging instruments are included in line 6



7.


In line 1, the total assets of line 1.1 and line 1.2



8.


In line 1.1 includes both owner-occupied properties and investment properties. For owner-occupied properties must in return is recognized imputed rent.



9.


In line 1.2 includes real estate subsidiaries and other investments, which in practice is considered real estate investments. The rate of return for real estate subsidiaries and other investments are calculated on the basis of the company's profits before tax.



10.


In line 2 includes subsidiaries that are not included in line 1.2. The rate of return for subsidiaries calculated on the basis of the subsidiaries' profits before tax.



11.


In line 3 includes investments that are not included in lines 1.2 or 2. The assets must equal the sum of the assets included in lines 3.1-3.4.



12.


In line 4 includes bonds. Assets must equal the sum of the assets of lines 4.1-4.6.



13


In line 4.1 includes government bonds, etc. according to § 26b paragraph. 1 pt. 1 and 2, of the Danish labor market supplementary.



14


In line 4.2 includes mortgage bonds under § 26b paragraph. 1 pt. 3 of the Danish labor market supplementary, except for index-linked bonds.



15


In line 4.3 include index-linked bonds (government and mortgage) from zone A.



16


In line 4.4 includes credit bonds at the balance sheet date have achieved a rating of a recognized rating company equal to at least investment grade.



17



In line 4.5 includes credit bonds at the balance sheet date have not achieved a rating of a recognized rating company equal to at least investment grade and emerging market bonds, including bonds that are not included in line 4.1.



18


In line 4.6 includes other bonds to the extent they can not be included in lines 4.1-4.5.



19


In line 6 includes investment assets not included in any of the previous lines. Moreover, other assets that provide a return, such as interest-bearing demand deposits. Finally, enter the value of currency hedging instruments, see. Section. 6



20


In line 7 included derivative financial instruments if the instrument is acquired to hedge net change of assets and liabilities. Among possible derivative financial instruments include CMS Floors, swaptions and interest rate swaps.







Appendix 4

Specification of investments, including investments in unit trusts,. § 12 portfolio analyzed by industry and regions









Denmark


other
Europe


North
america


South
america


Japan


other
Far
East


other
countries


not
distributed


Total



energy












materials












industry












consumption
goods












Konsument-
items












health care












Financial













IT












telecommunications












supply












Unallocated












Total
















Appendix 5

Rules for completing the table in Annex 4











1.


Industry classification based on the industry classification used by the Copenhagen Stock Exchange. Investments that are not listed on the Copenhagen Stock Exchange, tap into the relevant categories.



2.


The value of investment fund shares and derivatives are included in the individual lines after the underlying assets character. Known industry not for the underlying assets included these under 'Unallocated'.



3.


The grading of a shareholding in a region must be based on the country of registration of the company in which it holds an interest. Known country of registration, not for the underlying assets included these under 'Unallocated'.



4.


Other Europe includes the following countries: Other EU countries plus Iceland, Norway and Switzerland.



5.


North America includes the following countries: Canada, USA and Mexico.



6


South America includes the following countries: Argentina, Brazil, Chile, Colombia, Peru, Paraguay, Uruguay, Ecuador, Bolivia and Venezuela.



7.


Other Far East includes the following countries: Hong Kong, China, Singapore, Indonesia, the Philippines, Korea, Malaysia, Taiwan and Thailand.



8.


Other countries include all other countries.







Appendix 6

Form for sensitivity information, see. § 19







event


Influence of
assets



Influence of
Guaranteed benefits


Total effect on
Bonus potential



Interest rate increase of
0.7-1.0 per cent. points






Falling interest rates on
0.7-1.0 per cent. points






Share price drop of 12 percent.



-




Property price drop
8 per cent.



-




Exchange rate changes by ½ per cent. 10-day probability



-




Loss on counterparties
8 per cent.



-




Decrease in mortality
intensity of 10 per cent.


-





Increase in mortality
intensity of 10 per cent.


-








For each event are calculated impact between the assets and the value of guaranteed benefits and the overall effect on bonus potential.






The impact of the individual events in the table are calculated from an all-things-right-account based on the closing balance sheet amounts disclosed in the financial statements. It is assumed that the individual events occur as immediate events.







Appendix 7

Five-year summary of financial highlights, see. § 10











In the five-year overview is displayed in schematic form key figures for the financial year and the corresponding figures for the previous four financial years.







Five-year summary shall include the following highlights:



1.


Contributions



2.


Pension benefits



3.


ROI



4.


Pension operating expenses, total



5.


Pension Technical result



6


Net profit



7.


Pension provisions, totaling




8.


Total assets







Five-year summary must contain the following ratios:



1.


Return before tax on pension



2.


Return after tax on pension



3.


Expense of contributions



4.


Expense of provisions



5.


Cost per. member



6


Bonus ratio



7.


Return on pension provisions before tax on pension








Calculation of key figures in the five year summary









1. Return ratios calculated using the following formulas:























The parameters included in the formulas is defined as follows:







A


Total investment income in the profit and loss.



C


Payments (or payments), assuming paid evenly continuously over the year.



D


Payments (or payments), the nature of major one-off payments.



V


The market value of the net assets. That is total assets less the liabilities that do not represent obligations to members.



X


The provision for pension returns.



k


Number of days after the beginning where the big-time payment or -udbetaling takes place.







Is that in each case not reasonable to assume that the net current payments are evenly distributed throughout the year, the net current payments included in the formula in the same way as major one-off payments provided. D, for example, so that the net current payments are recognized daily or monthly in accordance with the actual daily / monthly net payments. The applied method of calculation with regard to the current net payments must be disclosed in the financial statements.









2. Cost The ratios are calculated using the following formulas:
















The parameters included in the formulas is defined as follows:







GY


The value of the guaranteed benefits equal to the liability item Guaranteed benefits.



O


The year's pension expenses, ie all expensed costs not related investment activities.



P


The year's gross contributions.



Q


Number of members.








3. Consolidation ratio calculated as follows:
















The parameters included in the formulas is defined as follows:







BP


Bonus potential corresponding to the liability item bonus potential, see. § 7.



GY


The value of the guaranteed benefits equal to the liability item Guaranteed benefits, see. § 5.








4. Return key figure is calculated using the following formula:
















The parameters included in the formulas is defined as follows:







B


Total movements to and from pension provisions as a result of receipts and payments (contributions, benefits and costs).



FH


The pension provisions equal to the sum of the liabilities guaranteed benefits, claims provisions and bonus potential.




In


Payments (or payments) as more in the nature of large one-off payments.



Z


The pension-tax related provisions.



k


Number of days after the beginning of the year, where the larger one-time payment or -udbetaling takes place.