Regulatory Alerts2019-06-03
Amendments to the Pension Funds Act Regulations on Default Investment Portfolios and Annuity Strategies
The South African Minister of Finance has amended the Pension Funds Act Regulations to mandate the establishment of default investment portfolios and standardized annuity strategies for retirement funds. Fund boards must design appropriate, competitively priced default portfolios with transparent fee disclosure, guarantee annual member transfer rights, and ensure seamless preservation and portability of benefits for departing members without levying initial charges. All pension and preservation funds must implement annually reviewed annuity strategies that include mandatory retirement benefits counselling, while existing default arrangements must achieve full compliance within eighteen months of the 1 September 2017 commencement date.
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