Transcript REDS PENSION FUND - Summary of Rules

PROPOSED AMENDMENTS TO THE PENSION FUNDS
ACT – OCTOBER 2006
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:
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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:
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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’ DUTIES
REGISTRAR’S POWERS
Wide & vague new duties imposed on s13B
administrators
Registrar’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 penalties
New s40D – Minister’s powers to delegate
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