RETIREMENT PENSIONS (TECHNICAL PROVISIONS) REGULATIONS (technicalprovisions)

SUBSIDIARY LEGISLATION 514.04

RETIREMENT PENSIONS (TECHNICAL

PROVISIONS) REGULATIONS

1st January. 2015 *

LEGAL NOTICE 8 of 2015, as amended by Legal Notice 45 of 2020.

The title of these regulations is the Retirement Pensions

(Technical Provisions) Regulations.

(1) Any reference in these regulations to the Act is a

reference to the Retirement Pensions Act and subject to the

provisions of sub-regulation (2) of this regulation, the provisions of

article 2 of the said Act shall also apply to these regulations.

(2)

In these regulations unless the context otherwise requires -

"technical funding requirement" means a requirement that the

value of the assets of a retirement scheme shall not be

(a) less than such amount, nor

(b) more than such amount,

as may be stipulated in terms of Pension Rules issued by the

competent authority.

These regulations shall apply to every retirement scheme

which is either an occupational retirement scheme or a personal

retirement scheme, providing cover against biometric risks or

guarantees either an investment performance or a given level of

benefits in terms of the Act and any reference to "retirement scheme"

in these regulations shall construed accordingly.

(1) Every retirement scheme shall establish sufficient

technical provisions in accordance with these regulations and

Pension Rules issued thereunder.

(2) The calculation of the technical provisions shall take place

at such intervals as stipulated in the Pension Rules.

(3) Every retirement scheme shall be subject to and shall comply

with a technical funding requirement, as well as with provisions

regarding under-provision or over-provision of the technical funding

requirement established in terms of these regulations.Requirement for

an actuarial valuation and certificate from an actuary.

(1) In accordance with article 16 of the Act and the

Pension Rules issued thereunder, every defined benefit retirement

scheme shall appoint an actuary approved by the competent

authority.

(2) The retirement scheme shall obtain within such period as

stipulated in Pension Rules, an actuarial valuation as set out in the

Pension Rules from the retirement scheme’s actuary and afterwards

*see regulattion 1(2) of these Regulations, as originally promulgated.

obtain such a valuation at such intervals as stipulated in Pension

Rules.

(3) The retirement scheme shall in such circumstances, or on

such dates, or within such periods as stipulated in Pension Rules

obtain a certificate prepared by the retirement scheme’s actuary -

(a) stating whether or not in his opinion the contributions

payable towards the retirement scheme are adequate

for the purpose of securing that the technical funding

requirement will continue to be met throughout the

prescribed period or, if it appears to him that it is not

met, whether or not in his opinion it will be met by the

end of that period; and

(b) indicating any relevant changes that have occurred

since the last actuarial valuation was prepared.

(4) The retirement scheme shall obtain an actuarial valuation

within the period stated in sub-regulation (2)

(a) in the event that the actuary states in the certificate

referred to in sub-regulation (3), that in his opinion

(i)

the contributions payable towards the retirement

scheme are not adequate for the purpose of

securing that the technical funding requirement

will continue to be met throughout the period

stipulated in Pension Rules; or

(ii) the technical funding requirement is not met at

the time of issue of the certificate; or

(iii) it will not be met by the end of that period; or

(b) in such circumstances as may be stipulated in Pension

Rules.

(5) If the retirement scheme obtains a valuation under sub-

regulation (4), it shall do so -

(a) in the case of a valuation required by paragraph (a)

thereof, within the period of three months or such

other period as may be determined by the competent

authority reckoned from the date of the actuarial

certificate, and

(b) in any other case, within such period as may be

stipulated in Pension Rules.

(6) A valuation or certificate shall be prepared in such manner,

give such information and contain such statements as may be

stipulated in Pension Rules.

(1) Where an actuarial valuation shows that, on the

effective date of the valuation, the value of the retirement scheme

assets is less than the amount prescribed for the purposes of

paragraph (a) of the definition ''technical funding requirement'' in

regulation 2(2) (the difference shown in the valuation hereinafter

referred to as ''the shortfall'') the employer or contributor shall -

(a) by making an appropriate payment to the retirement

scheme; or

(b) by such other method as may be stipulated in Pension

Rules,

secure an increase in the value of the retirement scheme assets

which, taken with any contributions paid, is not less than the

shortfall.

(2)

The required increase in that value must be secured -

(a) before the end of such period as may be stipulated in

Pension Rules reckoned from the date of the valuation;

or

(b) if the actuarial valuation was obtained by reason of a

statement in the certificate referred to in regulation

5(3), before the end of a period stipulated in Pension

Rules reckoned from the date of the certificate.

(3) Except in such circumstances as may be stipulated in

Pension Rules, if the employer or contributor referred to in sub-

regulation (1) fail to secure the required increase in value before

the end of the period applicable under sub-regulation (2), the

retirement scheme administrator, or the retirement scheme actuary

shall within the period of thirty days reckoned from the end of that

period, give written notice of that fact to the competent authority,

members and beneficiaries of the retirement scheme.

(4) Except in such circumstances as may be stipulated in

Pension Rules, if the employer referred to in sub-regulation (1)

fails to secure the required increase in value before the end of the

period applicable under sub-regulation (2), then so much of the

shortfall as, at any subsequent time, has not been met by an

increase in value made under sub-regulation (1) or otherwise by

contributions made before the end of that period, such shortfall

shall be recoverable by the retirement scheme from the employer

and the provisions of article 19(5) of the Act shall mutatis mutandis

apply with regard to any such debt; and, in the case of a personal

retirement scheme, such amounts shall be recoverable from the

contributor.

(5) The competent authority may extend, or further extend the

period referred to in sub-regulation (2), and where it refuses to

extend or further extend the period, it shall give written notice to

the retirement scheme of the refusal together with a statement of

reasons for its decision.

(1) Where an actuarial valuation shows that, on the

effective date of the valuation, the value of the assets of the

retirement scheme is more than the amount prescribed for the

purposes of paragraph (b) of the definition ''technical funding

requirement'' in regulation 2(2) (the difference shown in the

valuation hereinafter referred to as ''the excess''), the competent

authority may issue a directive to the employer or contributor and

the retirement scheme to take such steps by such method as may be

approved by the competent authority to secure an appropriate

reduction in the value of the retirement scheme assets.

(2) The required reduction in that value must be secured before

the end of such period as may be specified in the directive.

(3) If the employer or contributor and retirement scheme fail to

secure the required reduction in value before the end of the period

applicable under sub-regulation (2), the retirement scheme shall,

within the period of thirty days reckoned from the end of that

period, give written notice of that fact to the competent authority,

members and beneficiaries of the retirement scheme.

(4) The competent authority may extend, or further extend the

period referred to in sub-regulation (2), and where it refuses to

extend, or further extend the period, it shall give written notice to

the retirement scheme of the refusal together with a statement of

reasons for the decision.

(1) A schedule of payments shall be prepared by the

retirement scheme before the end of such period as may be

stipulated in Pension Rules, reckoned from the date of the first

actuarial valuation for the retirement scheme, and shall thereafter

be revised before the end of such period as may be prescribed,

reckoned from the date of the signing of each subsequent actuarial

valuation.

(2) Where from time to time, such revisions are agreed by the

retirement scheme and the employer or contributor, and where

applicable, any other contributor to the retirement scheme, and any

such revision in the rates of contributions is certified by the actuary

of the retirement scheme as meeting the requirements of the Act, or

as may be prescribed or in the circumstances referred to in

paragraph (b) of sub-regulation (3), the schedule of payments may

be revised.

(3) The matters contained in the schedule of payments as

revised shall be

(a) matters previously agreed between the retirement

scheme and the employer, and where applicable, any

other contributor to the retirement scheme, or

(b) where no such agreement has been reached

(i) the rates of contributions determined by the

retirement scheme and the actuary of the

retirement scheme and certified by the actuary

of the retirement scheme, being such rates as in

their opinion are adequate for the purpose of

securing that the technical funding requirement

will continue to be met throughout the

prescribed period or where it appears to them

that the technical funding requirement is not

being met, such rates as are adequate for such

requirement to be met by the end of that period;

and

(ii) any other matters determined by the retirement

scheme and the actuary of the retirement

scheme.

(4) An agreement for the purposes of paragraph (a) of sub-

regu lati on (3 ) sh all be mad e d uri ng such perio d as may be

stipulated in Pension Rules, beginning with the signing of the last

preceding actuarial valuation for the retirement scheme.

(5)

The actuary shall not certify the schedule of payments -

(a) where it appears to him that the technical funding

requirement is met, unless he is of the opinion that the

rates are adequate for the purpose of securing that the

requirement will continue to be met throughout the

period stipulated in Pension Rules, and

(b) in any other case, unless he is of the opinion that the

rates are adequate for the purpose of securing that the

requirement will be met by the end of that period.

(6) The competent authority may extend, or further extend the

period referred to in sub-regulation (1), and where it refuses to

extend, or further extend such period, it shall give written notice to

the retirement scheme of the refusal together with a statement of

reasons for the decisions.

The competent authority may from time to time issue

Pension Rules in terms of article 37(4) of the Act for the better

carrying out of the provisions of these regulations.