SWEDEN - Insurer AMF has decided to grant an increase of interest payments to its defined contribution members from 8% to 12% following positive investment results.
Spokeswoman Johanna Sarfati said at the end of October the funding ratio of its plan was 119%. This gave the company scope to raise payments to members' accounts.
According to AMF's consolidation policy - which specifies the terms under which a surplus or deficit has to be distributed to members - a solvency ratio higher than 110% allows the company to increase payments.
AMF president Ingrid Bonde said in a statement: "I am glad we can offer by far the highest rate on retirement savings and that the autumn increase benefits our depositors."
The statement also claimed the distance between AMF and its nearest competitor was 7 percentage points.
For the first half of 2009, AMF posted a 4.8% profit, benefiting from strong equity and active strategies returns (Global Pensions, August 28, 2009).
The Pensions and Lifetime Savings Association (PLSA) is in the process of convening an industry-wide group to take forward the work of the Institutional Disclosure Working Group (IDWG).
The Transfers and Re-registration Industry Group (TRIG) has given its support to an initiative which aims to complete occupational pension transfers within three weeks.
Scottish Widows has completed a bulk annuity deal for the Hitachi UK Limited Pension Scheme.