Regulatory Alerts2023-03-02
Added · Updated
Prudential Guideline for the Implementation of Regulation 16 of the Retirement Benefits (Occupational Retirement Benefits Schemes) Regulations, 2000 on Conversion of Schemes from Defined Benefit to Defined Contribution Designs
This directive mandates the core principles and documentation requirements for Retirement Benefits Authority (RBA) approval when converting schemes from defined benefit to defined contribution designs. Trustees must address accrued liabilities either by maintaining defined benefit obligations with mandatory inflation-linked revaluations or by transferring actuarial reserves to defined contribution accounts, ensuring proper apportionment between employer and employee. Underfunded schemes may proceed with conversion only through approved remedial plans, while all applications must include formal member education records, actuarial valuation reports, and verified member consent documentation.
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