Regulatory Alerts2018-03-31
Information Circular 8 of 2008: Method of Payment of Surplus Benefits
The South African Registrar of Pension Funds clarifies that pension fund boards may alter the payment method for surplus benefits approved under Section 15B of the Pension Funds Act without seeking fresh regulatory approval. Such modifications must prioritize the recipient's best interests, involve transparent communication addressing beneficiary objections, and comply with all Pension Funds and Income Tax Act provisions. Boards retain the authority to implement these changes provided the surplus was not already transferred under Section 14, and must maintain detailed records of all adjustments for potential regulatory inspection.
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