Weekend Argus (Saturday Edition) - - GOODWINES -

John An­der­son of Alexan­der Forbes says it is im­por­tant that where funds are sub­ject to re­duc­tions in con­tri­bu­tions or ben­e­fits or both, any use of a fu­ture sur­plus or em­ployer/mem­ber sur­plus could po­ten­tially be used to al­le­vi­ate some of the hard­ship.

An­der­son says that any use of new or fu­ture sur­pluses, which are not af­fected by the cur­rent sur­plus dis­tri­bu­tions reach­ing back to the 1980s in terms of the Pen­sion Funds Act, would need care­ful con­sid­er­a­tion.

In terms of cur­rent leg­is­la­tion, em­ployer-elected trustees de­cide how any amount in the em­ployer sur­plus ac­count is used (if at all) and mem­ber-elected trustees con­sider how the mem­ber sur­plus ac­count is man­aged.

Any sur­plus pro­posed for dis­tri­bu­tion would have to be con­firmed by the re­tire­ment fund’s ac­tu­ary.

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