Regulatory Alerts2018-03-31
Information Circular 10 of 2007: Valuation Assumptions as at Surplus Apportionment Date
The South African Financial Services Board issued Information Circular 10 of 2007 to amend valuation assumptions for determining actuarial surplus at a pension fund's surplus apportionment date. The circular replaces a previous proviso in Circular PF117, explicitly requiring that the net discount rate on long-term fixed interest gilts exceed the total salary increase assumption by at least one percentage point for all ages above 40. Under the Pension Funds Act, any statutory actuarial valuation failing to comply with this clarified requirement may be deemed unacceptable by the Registrar of Pension Funds.
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