Regulatory Alerts2021-04-23
Guidelines for the Conversion or Shift of Defined Benefit Pension Schemes to Defined Contribution Pension Schemes
The Financial Services Commission of Mauritius has issued guidelines establishing the regulatory framework for converting or shifting defined benefit pension schemes to defined contribution structures. Sponsoring employers must submit a comprehensive application pack containing actuarial valuations, amended constitutive documents, and evidence of member communication and consent to demonstrate full funding or address deficits through lump-sum contributions or approved contingency plans. The guidelines mandate clear disclosure of commuted values and benefit options, allowing members to either convert their accrued benefits into individual DC accounts or shift to future accrual under a DC scheme while preserving past service entitlements.
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