New decision issued for pension funds

The Minister responsible for Financial Affairs has issued a decision with rules for investment of funds in the social insurance and Pension Funds.

The decision deals with the matter of board of directors exercising necessary powers to implement the provisions of the regulation. It can delegate some of its powers to the competent department and the investment committee.

As per the details available published in the official gazette, the funds include General Authority for Social Insurance, Civil servants retirement fund, Royal Oman Police Retirement Fund, Diwan of the Royal Court Staff Pension Fund, Pension Fund of the Royal Guard of Oman, Royal Office Pension Fund, Ministry of Defence retirement fund, Internal Security Pension Fund, Sultan’s Special Retirement Fund. It includes all funds established by Royal decrees.

The Board of Directors can propose the amendment to these regulations and also establish an investment risk unit. The investment of the funds may be entrusted to local or foreign institutions.

The functions of the competent department will include investment of the Fund’s funds, ensuring the maintenance of the total assets of the authority, evaluating the performance of the investments and preparing a detailed annual report on the performance of the authority’s investments.

The investment committee will include a representative of the ministry of finance and three members of the board or the fund.

The local or foreign institutions entrusted with managing the funds must be approved by the board of directors and by a contract.

A number of conditions must be met in the local and foreign institutions, including registration, investment management activity for at least five years for local institutions and ten years for foreign institutions.