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’ DUTIES REGISTRAR’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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