Regulatory Alerts2018-03-31
PF Circular 117: Valuation at Surplus Apportionment Date and Contingency Reserve Accounts
The Financial Services Board of South Africa issues PF Circular 117 to establish mandatory actuarial valuation standards for determining surplus apportionment among pension fund stakeholders. The circular requires valuators to use realistic best-estimate assumptions without deliberate conservatism, mandates the establishment of specific contingency reserve accounts such as solvency and risk reserves, and dictates precise reconciliation procedures for any changes in funding methods or actuarial assumptions. It further outlines calculation methodologies for minimum benefits and solvency reserves to ensure equitable stakeholder treatment and prevent fund deficits.
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