Regulatory Alerts2024-03-04
FSCA Interpretation Ruling 1 of 2024 on Section 37C of the Pension Funds Act
The Financial Sector Conduct Authority issued Interpretation Ruling 1 of 2024 to clarify the application of Section 37C of the Pension Funds Act regarding the calculation and distribution of death benefits. The ruling requires registered funds to prioritize Section 37C over conflicting fund rules when tracing and paying unclaimed, paid-up, or deferred retiree benefits to dependants upon a member’s death. It further establishes that benefits which have already vested or received written payout instructions before death are excluded from Section 37C and must be distributed directly to the deceased’s estate.
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