IRF

Pension Fund Regulatory Issues

Applicable Legislation, Regulations and Board Notices

Pension Funds Act 24 of 1956 and Regulations

Board Notices
These can be found at http://www.fsb.co.za under ‘Retirement Funds

Pension Fund Circulars and Directives
Circulars by the FSB are made up of Interpretation Notes; PF Circular and Information Circulars.

Latest Interpretation Notes

Interpretation Note 1 of 2010 – Minimum Pension Increases
Interpretation Note 2 of 2010 – Fund Return and processing mismatches
Interpretation Note 3 of 2010 – Reserve Accounts in Rules

Latest PF Circulars

PF Circular 117 – Valuation at the surplus apportionment date to determine the amount to be apportioned between stakeholders, the establishment of contingency reserve accounts and changes of method or assumptions
PF Circular 129 – Proceeds of the investigation into secret profits made by a service provider of a fund
PF Circular 130 – Good Governance of Retirement Funds

Latest Information Circulars

Information Circular 1 of 2010 – Regulation 28-Exemption in respect of investments held outside the Republic
Information Circular 2 of 2010 – Section 37C-Payment of Death Benefits
Information Circular 3 of 2010 – Clarification in respect of the approval of entities providing administration services and/or giving advice to South African Pension Funds

Submissions and Responses

Submissions to the Financial Services Board (FSB):

1112 – submission on BN on Valuation exemptions - Download

1116 – submission on the consumer Protection Act - Download

1005-Submission on Service Level Commitment between the office of the Registrar of Pension Funds and the Retirement Funds Industry (‘Draft’ Information Circular PF No.1 of 2010)

1006-Submission on Interpretation Note 1 of 2010, Minimum Pension Increase

1007-Submission on Interpretation Note 2 of 2010, Reserve Account in Rules

1027-Submission on Section 8, Appointment of a Principal Officer and duties to report irregularities and termination of appointment

1029-Submission on Treating Customers Fairly

Responses:
The submissions come about, a lot of the times, as a result of discussions had at the quarterly Legal and Technical meetings thus has the FSB provided a cumulative response to queries raised at one such meeting.

Submissions to National Treasury

1019-Submission of Draft Regulation 28
1026-Submission on withdrawal from a retirement annuity fund upon emigration
1028-Submission on the Draft Taxation Laws Amendment Bill,2010

Submission to the Department of Trade and Industry
1012-Submission on the Draft Companies Regulations, 2010

Documents for Comment
Draft Regulations 28 - which denotes how pension fund monies should be invested and ‘limits the amount and extent to which a fund may invest in a particular asset or in particular kinds or categories of assets, prescribing the basis on which the limit shall be determined and defining the kinds or categories of assets to which the limit applies’ – the regulation gives effect to s36(1)(BB) of the Pension Funds Act 24 of 1956.

Explanatory Memorandum
Proposed Amendments