Regulatory Alerts2018-03-31
Interpretation Note 1 of 2010: Minimum Pension Increases
The Financial Services Board of South Africa issued this note to clarify the application of minimum pension increase provisions under the Pension Funds Act, 1956. It mandates that registered funds conduct a minimum pension increase test at least once every three years and award any required increases within six months of the test date. The guidance further requires pension increase policies to be strictly linked to an inflation measure, outlines specific exemptions for outsourced liabilities and fixed-income pensioners, and establishes affordability calculations based on accrued liabilities and contingency reserves.
Share