Retirement Fund Solutions
Benchmark Retirement Fund
When a participating employer in an umbrella fund is transferred to another fund by means of a ‘section 14 transfer’, the question arises whether the unclaimed benefits must also be transferred. Where they are not transferred one obviously cannot state that all assets and liabilities were transferred. Does this mean that the transfer contravenes the provisions of section 14 of the Pension Funds Act?
In the second half of last year NAMFISA issued a number of new regulations and standards for comment. Although some comments were submitted these mostly did not address the substance of these but rather their form. Having considered these comments NAMFISA made some changes that we would consider superficial and not addressing the real concerns. Trustees are urged to pro-actively consider the possible implications of these regulations and standards and how to deal with these. Funds are encouraged to liaise with RFS where these may impact the administration of the fund.
It seems most insurers have chosen to follow the path of expected least resistance and deduct the long-term insurance levy from investors who have invested in insurance policy wrapped investment product. Worse, they calculate the levy on inflows only and ignore any outflows.
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