PROPOSED AMENDMENTS TO THE PENSION FUNDS ACT – OCTOBER 2006

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PROPOSED PFA AMENDMENTS

For comment by 27 October (Friday!)

Purpose of amendments ?

Timeline ?

Retrospective ?????

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SURPLUS & MINIMUM BENEFITS

“Improper use” and nil-surplus cases

“Fund return” from SAD to actual date of allocation / pmt

“Improper use” – definitions clause rewritten

Nil surplus returns required

Minimum benefits:• DB Minimum Individual Reserve clarified

• Pension increase policy N/A where annuities were purchased

• “Resetting” the Pensioner Notional Account at SAD

• New concept of a Pensioner Minimum Individual Reserve

• Applications of Pensioner MIR, e.g. pensioner outsourcing

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OTHER PROVISIONS

Definitions:• Beneficiary, Benefit, “prescribed by regulation” (vs. “prescribed”)

• Change to def’n of “contribution holiday” – significance lost on me!

• “Rules” – includes “documentation referred to in the Rules” ???

Contingency Reserves – Registrar’s new powers

“Dependants” redefined

Section 37C – “will not apply to beneficiary pensions”

Act to apply to “bargaining council Funds”

Interest on late contributions & individual transfers out

Liquidations: Registrar’s power to exempt

Divorce Order amounts to be deductible from benefits

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SECTION 14

Deadlines, e.g. 180 days to submit

Simple transactions will be exempted

Registrar’s power to withdraw & amend?

RA Fund Rules may not prevent transfers out

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ADJUDICATOR

Minister may appoint Deputy & Acting Adjudicators

Power to extend 30-day deadline for complaining to Fund (etc.)

Power to extend 3-yr deadline for complaints to Adjudicator removed?

High Court will not be able to consider new evidence

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ADMINISTRATORS’ DUTIESREGISTRAR’S POWERS

Wide & vague new duties imposed on s13B administratorsRegistrar’s new powers to sanction administrators (s13B)Registrar’s new powers to initiate audit or valuation of any Fund (s18)Registrar’s new powers to commission investigations of Funds or administrators (s25)Registrar assumes Court’s powers to “intervene in the management of a fund” (s26)s33A – Registrar may issue “Directives”Rewritten s37 dealing with administrative penaltiesNew s40D – Minister’s powers to delegate

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