Regulatory Alerts2026-07-08
Added
NAMFISA Clarifies Process of Purchasing Living Annuities for Outsourced Pensioners
The Registrar supports pension funds purchasing annuities in the fund's name under Scenario 1, where pensioners retain full membership and benefit entitlements. Conversely, the Registrar prohibits Scenario 2 transfers that terminate pensioner membership, as they contravene Sections 37A and 14 of the Pension Funds Act, No. 24 of 1956. Section 14 applications for such transfers are approved only in exceptional cases where documentary proof demonstrates that the pensioner and their dependents will not be detrimentally affected and will receive benefits that are better or similar to those currently held. Boards of Trustees are reminded of their fiduciary duties, with warnings that breaches may result in regulatory action against trustees, administrators, and advisers.