The Registrar of pension funds has been given greater regulatory power with the promulgation of the Pension Funds Amendment Act, 11 of 2007 this week.
The Amendment Act empowers the Registrar to:
* Suspend or withdraw the approval granted to a fund administrator;
* Impose an administrative penalty of up to R5-million a day;
* Conduct a compliance visit of the business and affairs of a fund;
* Intervene in the management of a fund.
The Act also clarifies the surplus utilized improperly in terms of section 15B of the Act and other provisions regarding the process of surplus apportionment. These amendments give clarity to boards of trustees when apportioning surplus, and endeavour to close loopholes that allow for creative interpretations of the Pension Funds Second Amendment Act, 2001.
It brings the regulation of retirement funds established through bargaining council arrangements under the regulatory auspices of the Registrar of Pension Funds. Bargaining council funds not registered under the Act must register on or before 1 January 2008. This will ensure consistency in fund governance and dispute resolution across bargaining council funds and other occupational funds.
Further, a retirement annuity fund may not prohibit the transfer of business from that fund to another.
The jurisdiction of the Pension Funds Adjudicator is clarified and provision is made for the appointment of a deputy and acting adjudicator.
There is also clarity on how to deal with divorce orders and maintenance claims in respect of pension benefits.
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