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PROPOSED AMENDMENTS TO THE PENSION FUNDS ACT – OCTOBER 2006

PROPOSED AMENDMENTS TO THE PENSION FUNDS ACT – OCTOBER 2006. PROPOSED PFA AMENDMENTS. For comment by 27 October (Friday!) Purpose of amendments ? Timeline ? Retrospective ?????. SURPLUS & MINIMUM BENEFITS. “Improper use” and nil-surplus cases

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PROPOSED AMENDMENTS TO THE PENSION FUNDS ACT – OCTOBER 2006

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  1. PROPOSED AMENDMENTS TO THE PENSION FUNDS ACT – OCTOBER 2006

  2. PROPOSED PFA AMENDMENTS • For comment by 27 October (Friday!) • Purpose of amendments ? • Timeline ? • Retrospective ?????

  3. SURPLUS & MINIMUM BENEFITS • “Improper use” and nil-surplus cases • “Fund return” from SAD to actual date of allocation / pmt • “Improper use” – definitions clause rewritten • Nil surplus returns required • Minimum benefits: • DB Minimum Individual Reserve clarified • Pension increase policy N/A where annuities were purchased • “Resetting” the Pensioner Notional Account at SAD • New concept of a Pensioner Minimum Individual Reserve • Applications of Pensioner MIR, e.g. pensioner outsourcing

  4. OTHER PROVISIONS • Definitions: • Beneficiary, Benefit, “prescribed by regulation” (vs. “prescribed”) • Change to def’n of “contribution holiday” – significance lost on me! • “Rules” – includes “documentation referred to in the Rules” ??? • Contingency Reserves – Registrar’s new powers • “Dependants” redefined • Section 37C – “will not apply to beneficiary pensions” • Act to apply to “bargaining council Funds” • Interest on late contributions & individual transfers out • Liquidations: Registrar’s power to exempt • Divorce Order amounts to be deductible from benefits

  5. SECTION 14 • Deadlines, e.g. 180 days to submit • Simple transactions will be exempted • Registrar’s power to withdraw & amend? • RA Fund Rules may not prevent transfers out

  6. ADJUDICATOR • Minister may appoint Deputy & Acting Adjudicators • Power to extend 30-day deadline for complaining to Fund (etc.) • Power to extend 3-yr deadline for complaints to Adjudicator removed? • High Court will not be able to consider new evidence

  7. ADMINISTRATORS’ DUTIESREGISTRAR’S POWERS • Wide & vague new duties imposed on s13B administrators • Registrar’s new powers to sanction administrators (s13B) • Registrar’s new powers to initiate audit or valuation of any Fund (s18) • Registrar’s new powers to commission investigations of Funds or administrators (s25) • Registrar assumes Court’s powers to “intervene in the management of a fund” (s26) • s33A – Registrar may issue “Directives” • Rewritten s37 dealing with administrative penalties • New s40D – Minister’s powers to delegate

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