Regulatory Alerts2018-03-31
PF Circular 126: Rules for Unclaimed Benefits and Orphan Funds
The Financial Services Board issued Circular PF 126 to establish regulatory frameworks for managing unclaimed pension benefits and funds lacking a properly constituted board of management. The circular prohibits fund rules from allowing unclaimed benefits to revert to the fund and mandates that administrators apply for classification of such entities as either unclaimed benefit funds or orphan funds, granting exemptions from levies and actuarial valuations. Upon classification, the Registrar may appoint an authorized representative to manage fund operations, including amending rules, approving financial statements, and executing transfers or deregistration, while requiring strict electronic submission of member data and annual financial statements.