Regulatory Alerts2024-08-14
Added · Updated
FSCA Communication 27 of 2024: Two-Component System for Defined Benefit Funds
The Financial Sector Conduct Authority (FSCA) establishes best practice for applying the two-component system to defined benefit retirement funds following the June 2024 Revenue Laws Amendment Act. Funds must allocate contributions into retirement and savings components based on two-thirds and one-third of pensionable service, respectively, while retaining the option to use FSCA-approved alternative allocation methods. The communication mandates specific actuarial principles for converting lump-sum savings withdrawals into reduced pensionable service, ensuring financial neutrality and transparent communication to members.
More like this from FSCA
We email you every new FSCA publication the day it's published.
Topics
Share