Bank of Russia defines requirements for calculating NPF liabilities
Non-governmental pension funds (NPFs) will be calculating this indicator quarterly based on their cash flow projections. New requirements will be applicable to both mandatory pension insurance agreements and non-governmental pension schemes. The relevant Bank of Russia’s Ordinance has been registered by the Russian Ministry of Justice. It will become effective from 1 January 2024.
The document describes common approaches to the methodology of calculation and accounting of the said figures. Further on, they are planned to be included in financial statements, taken into calculation of the insurance reserve ratio, and used in preparation of actuarial reports and in stress testing. The new requirements will help enhance control over the financial stability of these funds.