Regulatory Alerts2021-11-10
Added · Updated
Determination of Financial Soundness for Retirement Funds
The Namibia Financial Institutions Supervisory Authority has issued Standard RF.S.5.5 to mandate that all registered retirement funds maintain a funding ratio of at least 100 percent to satisfy financial soundness requirements. The regulation requires fund boards to establish and periodically review written soundness principles, obtain triennial valuator reports, and apply prudent actuarial methods for calculating technical provisions. When a fund’s ratio drops below the threshold, the board must either secure immediate employer contributions or implement a regulator-approved rehabilitation plan that restores full funding within three to five years.
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