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ixSurplus of AssetsThe Pension Funds Act contemplates both a surplus and a deficit of assets. There are detailedprovisions of the accounting in both circumstances. Article 24a(6) states that if there is asurplus of assets above the assets provided for in the business plan or by way of directorsresolution, there must be an annual cancellation of 10 per cent of the difference. Although itis not specifically stated, this will presumably be by way of debiting the pension accounts.xPension Aspects of purchasing or selling BusinessesAny pension arrangements established with employees must be transferred to the purchaserwho must take over the obligations of the previous employer with regard to the pension.The Income Tax Act lays down strict rules with regard to taxable accounting of pensioncontributions and benefits. These are contained in Article 124 of the Act and, for example,contain provisions of what will be considered a liability and what an asset. Contingentliabilities must also be considered.xiAdditional AdvisersAccording to the system of controls built into the Pension Funds Act to protect beneficiaries ofthe funds, pension funds are required to obtain additional advice from the following:a) An actuary who is responsible for preparing, or directing the preparation of, the businessplan and to supervise compliance with the plan. The actuary must be appointed by thepension fund’s supervisory board.b) A supervisory actuary who must be an independent adviser and who must in particularsupervise the following:a) Whether the operations of the business correspond to the business plan;b) Whether changes to the contributions or services provided are necessary;c) Whether and to what extent the employer must provide any cover; andd) Whether the requirements for insurance have been satisfactorily taken intoaccount.Furthermore, the supervisory actuary must give his approval to the business plan as well asany amendment to it before the authorisation of the Austrian Financial Market Authority isgiven.© Law Offices Dr. F. SchwankApril 2013- 65 -