Regulatory Alerts2020-03-27
FSCA Communication 11 of 2020: Urgent Rule Amendments for Financially Distressed Employers and Employees Under Section 13A of the Pension Funds Act
The Financial Sector Conduct Authority issued this communication to address COVID-19-related financial distress for employers and employees regarding Section 13A of the Pension Funds Act. It requires retirement fund boards to apply existing rules or urgently submit rule amendments that allow the suspension or reduction of contributions while ensuring full risk benefit premiums continue. Funds must inform affected members within thirty days, maintain proper records for inspection, and retain their income tax approval status following consultation with the South African Revenue Service.
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