Amendment To The "regulations On Insurers And The Creation Of Technical Reserves Calculation Methods"

Original Language Title: Grozījumi "Noteikumos par apdrošinātāju tehnisko rezervju izveidošanu un aprēķināšanas metodēm"

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Read the untranslated law here: https://www.vestnesis.lv/ta/id/128080

Financial and capital market Commission Regulation No 45 (financial and capital market Commission in Riga 2006 10 February Council meeting Protocol No 8, p. 2)
"The amendments to the rules on the insurance technical reserves and methods of calculation" Issued in accordance with the financial and capital market Commission of law article 6 1 and 2, article 7, first paragraph, point 1 and 2 and paragraph 2 of article 17 and the law "on private pension funds," the seventh subparagraph of article 23.1 to do with the financial and capital market Commission Council of 24 December 2004, decision No. 299 (pr. Nr. 49, 2. p.) in "the insurers approved the rules for the establishment of technical provisions and methods" (the rules) the following amendments: 1. provisions of title be expressed by the following: "the rules on insurers and private pension funds the establishment of technical provisions and methods of calculation".
2. To make provision for the picking grounds by the following: "Issued in accordance with the financial and capital market Commission of law article 6 1 and 2, article 7, first paragraph, point 1 and 2, and article 17, paragraph 2 of the insurance companies Act, and under the supervision of the seventh paragraph of article 40 and the law" on private pension funds, "the seventh subparagraph of article 14.4."
3. Express provisions in the first paragraph by the following: "the rules on insurers and private pension funds the establishment of technical provisions and methods" (hereinafter-the rules) are binding on the companies for insurance companies in the form of shares, mutual societies and cooperatives of the Member insurer not affiliates, as well as private pension funds, which according to license conditions offer certain cost plans, defined contribution plans with guaranteed yield or pension plans which provide cover against biometric risks. Insurers are binding on all the points, except for the provisions of points 3.1, and private pension funds are bound by these rules 1 and 3.1 point. "
4. To supplement the provisions of point 3.1, the following new wording: "3.1 technical reserve calculation method of private pension funds pension plans 3.1 1. Pension Fund's Board approves the technical provisions, this provision at least the information specified in paragraph 1 under the pension plan and the conditions of the contract of participation, and methodology of technical provisions and the pension additional reserves in the event of negative deviations. The Pension Fund's Board, confirming the calculation of technical provisions used in the biometric tables, adhere to the precautionary principle, as well as take into account pension plan participants and pension plans intrinsic features, in particular the expected changes in the relevant risks of the trends.
3.1 2. technical reserve for Pension calculation of private pension fund offered certain cost plans, as well as contributions to the plans, which guarantee returns, and pension plans, which provide cover against biometric risks. The technical reserve for pension is calculated by the aktuārmatemātiskaj method, using the prospective method, in which the pension technical provision is equal to the difference between the pension plan obligations to pension plan members and the current value of future contributions receivable in the current value of the pension scheme, except in the case referred to in paragraph 3.111 the perspective method application is not possible.
3.1. creating a pension 3 technical reserve, take into account any pension plan obligations to pension plan participants, including: 3.1 3.1. institutions for occupational retirement provision due to beneficiaries;
3.1 3.2 the pension plan member savings benefits;
3.1 3.3. participants guaranteed cover against biometric risks;
3.1 3.4. another guarantee of retirement plan participants under the pension plan and the conditions of the membership agreement.
3.1 4. technical reserve for Pension calculation, taking into account all of the pension plan and the membership conditions laid down in the Treaty, including: 3.1 4.1. contributions receivable in future pension plan;
3.1 4.2 the future benefits to costs;
3.1 4.3. amount to be paid, after the pension plan provides for the possible case against biometric risks or cases;
3.1 4.4 the amount payable on termination of membership the pension plan before retirement age for joining;
3.1 4.5. in addition to the available benefits possible biometric risk joining the cases in accordance with the pension plan and the conditions of the contract of participation;
3.1 4.6 choice membership agreement or contract modification changes;
3.1 4.7. relevant pension plan expenses, t.sk. deductions for administrative expenditure and management expenses.
3.1 5. technical reserve Pension is calculated individually for each Member of the pension scheme, with the pension plan and the membership agreement, the appropriate aktuārmatemātik methods and the biometric tables and providing calculated pension technical provision of spare parts for the commitment of expenditure and the calculated pension technical spare parts possible relationship biometric risk joining cases execution separate accounts. Pension technical provision is calculated pension technical provision for the cost of spare parts and to calculate pension technical spare parts possible relationship of biometric risk joining cases execution. In the case of cross-border transactions using biometric tables that correspond to the public pension plan involved members of the raksturojošaj characteristics and which may be different from your home country pension plan members raksturojošaj features.
6. the pension Calculated 3.1 technical reserve increased by a statistically reasonable additional margin negative deviations.
7. Technical provisions 3.1 calculation method and base remain constant from one financial year to another. The change is justified when there are substantial changes legal, demographic or economic circumstances, which is based on assumption.
3.1 8. Pension Plan obligations to pension plan members and the present value of the future receipts contributions pension plan in calculating the present value of the prospective method used, the interest rate of the Pension Fund's Board determined taking account of the precautionary principle and the pension plan's liabilities to pension plan participants. Used to calculate the present value of the maximum interest rate should not be higher than the rate of 2.6 percent.
3.1 9. Pension Plan the pension calculated for the members of the technical parts of the pension plan cost for the provision of occupational retirement provision must not be less than the relevant date in the event of termination of membership, payable amounts. If the calculation results in a negative pension technical provision of related spare parts cost, it equates to zero.
10. The calculated pension 3.1 technical spare part the possible relationship of biometric risk joining cases execution may not be negative.
3.1 11. technical provisions of pension calculation method applies only retrospectively defined contribution plans, which the membership treaties do not set out a specific frequency and amount of contribution. Pension in calculating the technical provisions with retrospective method used, the interest rate may not be lower than the pension plan member guaranteed yield interest rate.
3.1 12. If a pension plan provides for a possible biometric risk joining the case of one member of the pension scheme for the amount of more than 0.5 percent of the amount of the Pension Fund's own resources, then this risk reinsurance to reinsurers, which corresponds to the supervision of insurance undertakings and the conditions of the law. Reinsurers ' share of technical reserve pension is calculated individually for each Member of the pension plan under the terms of the reinsurance contract.
3.1 13. Pension technical surplus to possessions acquired a possible biometric risk joining the cases in accordance with the pension plan and the membership agreement creates, but still declared the particular pension plan member not assigned and paid the extra you want the benefits of biometric risk joining the cases in the future in a specific time period.
3.1 14. Where the Commission suspects that the Pension Fund was used for the calculation of technical provisions methods to fully pass the secure retirement plan participants ' interests, that is, the pension plan and membership of the treaties, the Commission has the right to the pension calculation of technical provisions subject to additional and more detailed requirements, to ensure that pension plan members and beneficiaries, institutions for occupational retirement provision adequate protection of rights with the aim of providing pension plan membership and contractual obligations. "
5. Express provisions in paragraph 6 by the following: "the rules included provisions arising from: 6.1. Council of 19 December 1991 Council Directive 91/674/EEC on the annual accounts and consolidated accounts of insurance undertakings;
6.2. The European Parliament and of the Council of 5 November 2002, Directive 2002/83/EC concerning life assurance;
6.3. the Council of 24 July 1973 on the first Directive 73/239/EEC on the coordination of laws, regulations and administrative provisions relating to the taking up and pursuit of the business of direct insurance other than life assurance;

6.4. European Parliament and Council of Directive of 3 June 2003/41/EC on the activities and supervision of institutions for occupational retirement provision ".
6. Amendments shall enter into force on the day following their publication in the newspaper "journal".
Financial and capital market Commission President When the U.