Regulatory Alerts2025-01-31
PFR12 – Pension and Provident Fund Benefit Payment Rules 2024
Issued by the Non-Bank Financial Institutions Regulatory Authority (NBFIRA), these rules establish comprehensive procedures for calculating and disbursing pension and provident fund benefits across all licensed retirement funds and qualifying life insurers. The regulations mandate specific commutation limits, loan and medical expense deductions, hybrid annuity options with guaranteed minimum payouts, and strict timelines for payment processing and beneficiary disclosures. Retirement funds must implement clear default annuity strategies, provide pre-retirement counseling, ensure timely lump-sum and periodic payments, and adhere to actuarial guidance to maintain compliance with the Retirement Funds Act 2022.
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