ERRORS AND OMISSIONS IN THE DRAFTING OF THE PENSION FUNDS SECOND AMENDMENT ACT 2001

Friday, June 15, 2012
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The provisions of the Pension Funds Act which are potentially most onerous for employers, namely section 15B(5)(a) read with section 15B(6) are neither and for this reason they are likely to be subject to constitutional challenge. Section 15B(1) requires the board of management of a fund to submit to the registrar of pension funds a scheme for the proposed apportionment of any actuarial surplus in the fund as at the effective date of the statutory actuarial valuation next following the commencement of the Act. The term “actuarial surplus” is defined without reference to the value of amounts -in respect of “past improper use of surplus” by employers.

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