More protection for pensioners

GOVERNMENT has gazetted a legislative framework to empower the Insurance and Pensions Commission to deal with errant trustees of funds.

According to Statutory Instrument 80 of 2017, Ipec now has more powers to monitor and control pension funds so as to curb poor cooperate governance in the sector.

Under SI 80/2017, every fund shall have a maximum of nine trustees with half of them elected by members of the fund.

This comes after observations that employer representatives usually outnumbered employee trustees resulting in fund members’ interests being sidelined.

The SI also moves to deal with qualifications of fund trustees amid revelations that some trustees lacked competent skills to properly administer pension funds.

“It is hereby notified that the Minister of Finance and Economic Development has in terms of Section 36 of the Pension and Provident Funds Act (Chapter 24:09) made the following regulations;

“Every registered fund shall have at least three and not more than nine trustees, of which one half shall be elected by the members of the fund.

“A registered fund may appoint an expert trustee or independent trustee who in the opinion of the fund, may assist the trustees in exercising their functions.

“No person shall be appointed, elected or continue to act as a trustee unless he or she possess such qualifications and additionally or alternatively has such experience or expertise as may be required for the proper administration of the fund.

“Every fund shall within seven days after appointing or electing a trustee, forward to the Commissioner the name of the appointed or elected trustee together with the trustee s’ police clearance issued within a period of six months from the date of his or her appointed or election. In the case of a body corporate, tax clearance certificate and declaration form set out in the fourth schedule.”