Private Pension Schemes Act

Private Pension Schemes (Disclosure) Rules 2012

[GN 236 of 2012 – 1 January 2013] – [Section 38]

PART I – PRELIMINARY

1. Citation

These rules may be cited as the Private Pension Schemes (Disclosure) Rules 2012.

2. Interpretation

In these rules –

"Act" means the Private Pension Schemes Act;

"administrator" –

(a) means a person who is authorised to administer a private pension scheme pursuant to section 27; and

(b) includes a pension scheme administrator;

"prospective member" means an eligible person who applies to become a member of a private pension scheme;

"relevant information" means any information which a reasonable person who is knowledgeable in matters relating to pensions will deem necessary in the circumstances.

3. Application of rules

(1) These rules shall apply to the disclosure and communication of information and documents to beneficiaries of a private pension scheme licensed under section 9 or 12 of the Act.

(2) These rules shall not be exhaustive and shall be read in conjunction with the Act, relevant Acts and regulations made under those Acts, FSC rules, codes and guidelines which the Commission may issue from time to time.

PART II – DISCLOSURE REQUIREMENTS

4. Disclosure before becoming a member

The administrator or the sponsoring employer of a private pension scheme shall provide to any prospective member with a statement containing a summary of the information specified in Part I and Part II of the First Schedule.

5. Disclosure to beneficiaries

(1) The administrator of a private pension scheme shall –

 (a) within 2 months of the end of the financial year of the scheme, provide in writing to all members of the scheme a statement which shall contain the information specified in the Second Schedule;

 (b) where a pension benefit under the scheme becomes payable to a beneficiary, provide any relevant information to the beneficiary on the date on which the pension benefit becomes payable;

 (c) where a pension benefit under the scheme becomes payable as a result of the death of a beneficiary, provide any relevant information to the person entitled to the pension benefit on the date on which the pension benefit becomes payable; and

 (d) in respect of any member who becomes a deferred member, provide in writing to that member on the date he becomes a deferred member, the following information –

  (i) his rights to transfer his accrued pension benefits to another private pension scheme;

  (ii) the value of his accrued pension benefits on the date he becomes a deferred member together with any other relevant information specified in the Second Schedule;

  (iii) any other option available to the deferred member as provided in the constitutive documents of the scheme; and

  (iv) in respect of a defined benefit scheme, details of any increase to be made to his accrued pension benefits and whether such increase is discretionary or not.

(2) Where a private pension scheme requests the termination of its licence pursuant to section 42 of the Act, the governing body of the scheme shall, within 3 months of the request –

 (a) inform all beneficiaries of the request, giving the reasons for the request and stating the name and address of the contact person of the governing body or the administrator of the scheme to whom any further enquiry about the scheme shall be sent;

 (b) inform all beneficiaries of their accrued pension benefits and an indication of the extent to which, if any, their pension benefits will be reduced; and

 (c) provide all beneficiaries with any relevant information concerning payment of their future pension benefits and any option available to them.

6. Right to request information

(1) Any beneficiary of a private pension scheme may request for a copy of an annual report of the scheme from its administrator.

(2) Where a request is made under paragraph (1), the administrator of the scheme shall, within 6 months after the end of the financial year of the scheme, furnish to the beneficiary an annual report which shall include –

 (a) the audited financial statements, where applicable;

 (b) the actuarial valuation report, where applicable;

 (c) any change to the constitutive documents; and

 (d) any change to the written investment policy.

(3) The administrator of a private pension scheme shall, on request by any beneficiary of the scheme, furnish in writing the information specified in Part I and Part II of the First Schedule.

7. Disclosure of constitutive documents of private pension scheme

(1) The administrator of a private pension scheme shall provide to each member of the scheme within one month of the start of his membership –

 (a) a copy of the updated constitutive documents of the scheme which shall include the information specified in Part I of the First Schedule; and

 (b) all information specified in Part II of the First Schedule.

(2) The administrator of a private pension scheme shall inform the beneficiaries of the scheme of any material amendment to the constitutive documents of the scheme or to the information specified in Part II of the First Schedule within 3 months of such amendment.

8. Disclosure relating to investment choice

Where a member of a private pension scheme has an investment choice in respect of the scheme, the administrator of the scheme shall inform the member of –

(a) the different investment choices available under the scheme;

(b) any risk associated with each investment choice;

(c) the default investment choice;

(d) the cost implications, if any, of making each investment choice; and

(e) the asset allocation and historical investment performance of the investment portfolios.

PART III – MISCELLANEOUS

9. Clarity of information

Any information provided to beneficiaries under these rules shall be provided in a form and language which is easily understandable to the intended recipients.

10. Refusal to disclose

The administrator of a private pension scheme may refuse to disclose any information to a beneficiary of the scheme where –

(a) the information sought relates to any other beneficiary and is not relevant to the beneficiary's rights or prospective rights under the scheme; or

(b) the information sought has already been provided to the beneficiary within the last 12 months.

11. Fees

Any fee levied by a private pension scheme or its administrator in respect of any disclosure requirement made under these rules shall be reasonable and proportionate to expenses incurred in disclosing the information to beneficiaries.

12. –

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FIRST SCHEDULE

[Rules 4, 6(3) and 7]

PART I – CONTENTS OF CONSTITUTIVE DOCUMENTS

1. The criteria and conditions of eligibility for membership

2. The rights of members to terminate their pensionable service before the normal retirement age as provided in the rules of the scheme and if so, any period of notice that shall be given and any condition on which members may re-enter pensionable service

3. The pension benefits payable under the scheme and the circumstances in which beneficiaries shall be entitled to these benefits

4. The contribution rate payable by the member and by the sponsoring employer, where applicable

5. The member's normal retirement age under the scheme

6. The rights and pension benefits of beneficiaries, including rights arising on termination of membership or winding up of the scheme

7. The circumstances in which the governing body or sponsoring employer of the scheme may reduce pension benefits of beneficiaries

8. The circumstances in which the governing body or sponsoring employer of the scheme shall expect pension benefits payable to a beneficiary of the scheme to be less than the contributions made

9. Whether the scheme provides for any increase to pension benefits after they have become payable

10. Any arrangement for the preservation or transfer of accrued pension benefits of members whose employment or pensionable service terminates before they reach their retirement age

11. Any other provision required under the Act or any FSC rules made under it

PART II – GENERAL DISCLOSURE FOR A PRIVATE PENSION SCHEME

1. The names and functions of the members of the governing body of the scheme

2. The postal and email addresses of the contact person of the governing body

3. The name and address of the administrator of the scheme

4. Whether the private pension scheme allows members to pay additional voluntary contributions and any provision concerning these contributions

5. The licensing details and nature of the scheme

6. A statement that the scheme is regulated by the Commission under the Act and that the rights of the beneficiaries are protected under the Act and the Financial Services Act

7. Whether, and the circumstances in which, the private pension scheme shall accept transfer values and whether such acceptance is subject to the discretion of the governing body

8. Any pension benefit guaranteed by insurance policies

9. Whether there are procedures set out by the scheme for the resolution of disputes or for handling of complaints and the contact name and address of the person who administers these procedures for the scheme

10. The procedure for obtaining copies of any constitutive document of the scheme

11. The procedure for obtaining further information on the scheme, stating the name and address of a contact person to whom general enquiries about the scheme or about individual entitlement to pension benefits shall be sent

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SECOND SCHEDULE

[Rule 5(1)]

PART I – BENEFIT STATEMENT OF DEFINED CONTRIBUTION SCHEME

1.Name of the scheme

2. Date of the statement

3. Date on which the member joined the scheme

4. Details of the member and any beneficiary nominated by the member, where applicable

5. Normal retirement date of the member

6. The member's and sponsoring employer's contributions for the last financial year of the scheme, where applicable

7. The member's additional voluntary contributions for the last financial year of the scheme, where applicable

8. The member's and sponsoring employer's accumulated contributions together with interest, capital appreciation and appreciation in investment units allocated in respect of the contributions for the last financial year of the scheme, where applicable

9. The member's accumulated additional voluntary contributions together with interest, capital appreciation and appreciation in investment units allocated in respect of the contributions for the last financial year of the scheme, where applicable

10. Accrued pension benefits as per the rules of the scheme for the last financial year of the scheme, including the transfer value of the accrued pension benefits, where applicable

11. Projected pension benefits

PART II – BENEFIT STATEMENT OF DEFINED BENEFIT SCHEME

1.Name of the scheme

2. Date of the statement

3.Date on which the member joined the scheme

4. Details of the member and any beneficiary nominated by the member, where applicable

5. Period of pensionable service

6. Normal retirement date of the member

7. Pensionable earnings

8. The member's contributions for the last financial year of the scheme, where applicable

9. The member's accumulated contributions together with interest, capital appreciation and appreciation in investment units allocated in respect of the contributions, for the last financial year of the scheme, where applicable

10. Accrued pension benefits, for the last financial year of the scheme, including the transfer value of the accrued pension benefits, where applicable

11. Projected pension benefits

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Private Pension Schemes (Governance) Rules 2012

[GN 191 of 2012 – 1 November 2012] [Sections 17(1)(b), 27 and 50(1)]

PART I – PRELIMINARY

1. Citation

These rules may be cited as the Private Pension Schemes (Governance) Rules 2012.

2. Interpretation

In these rules –

"Act" means the Private Pension Schemes Act;

"beneficiary" has the same meaning as in the Act;

"Commission" has the same meaning as in the Financial Services Act;

"constitutive documents" has the same meaning as in the Act;

"financial crime" has the same meaning as in the Financial Services Act;

"Foundation" has the same meaning as in the Foundations Act;

"governing body" means –

(i) in the case of a trust, its Board of Trustees;

(ii) in the case of a fund registered under the repealed Employees Superannuation Fund Act, its managing committee; and

(iii) in the case of a Foundation, its Council;

"independent professional" means a member of a relevant professional body recognised regulation and includes a law practitioner, public accountant and actuary;

"licensee" has the same meaning as in the Financial Services Act;

"member of a governing body" means any person appointed or elected to act as or become a member of a governing body;

"officer" has the same meaning as in the Financial Services Act;

"pension benefit" has the same meaning as in the Act;

"private pension scheme" has same meaning as in the Act;

"service provider" means a person licensed, authorised, approved or registered under the relevant Acts or the Banking Act to provide financial services;

"trust" has the same meaning as in the Act.

[R. 2 amended by r. 3 of GN 321 of 2013 w.e.f. 21 December 2013.]

3. Application of the rules

(1) These rules shall apply to the governance of a private pension scheme licensed under the Act.

(2) Unless otherwise specified, these rules shall apply to a governing body of a private pension scheme.

(3) These rules are not exhaustive and should be read in conjunction with the Act, other relevant Acts, regulations and FSC rules made under those Acts and codes or guidelines which the Commission may issue from time to time.

4. Governance of a private pension scheme

(1) A private pension scheme must at all times be governed by a governing body whose members are suitably qualified to be appointed or elected.

(2) The governing body of a private pension scheme shall be ultimately responsible for –

 (a) the administration of the scheme;

 (b) the management or investment of the assets of the scheme;

 (c) ensuring adherence to the terms of the constitutive documents;

 (d) the protection of the best interests of beneficiaries; and

 (e) ensuring that the private pension scheme fulfils its overriding objective to provide for pension benefits.

(3) When delegating functions, the governing body of a private pension scheme shall exercise due care and diligence both in selecting delegates and in monitoring and overseeing the activities of the delegates.

PART II – GOVERNING BODY

5. Composition

(1) A member of a governing body shall be deemed to be at officer of a licensee under the Financial Services Act.

(2) The governing body of a private pension scheme licensed under section9 of the Act shall consist of at least 3 persons who shall be resident in Mauritius or incorporated in Mauritius.

(3) The governing body of a private pension scheme licensed under section12 of the Act shall consist of at least persons, of whom at least 2, shall be resident in Mauritius.

(4) Subject to section 24 of the Financial Services Act, where a private pension scheme licensed under section 9 of the Act is sponsored by an employer, at least one-third of the members of the governing body shall be elected or appointed by the members of the scheme.

(5) The members of a governing body shall annually appoint from amongst themselves a Chairperson, a Vice-Chairperson and a contact person.

(6) The contact person of an external pension scheme shall be a management company licensed under section 77 of the Financial Services Act.

(7) The constitutive documents of a private pension scheme shall provide for –

 (a) the appointment or election of the members of its governing body;

 (b) the tenure of the members of its governing body;

 (c) the remuneration of the members of its governing body, where applicable; and

 (d) any other related matters as the Commission deems necessary.

(8) The governing body of a private pension scheme shall maintain a list of its members as set out in the First Schedule and communicate this list to the Commission on an annual basis.

(9) The Commission shall be forthwith informed in writing of the removal or resignation of any member of the governing body of a private pension scheme.

6. Suitability of members of governing body

(1) The members of a governing body shall be appointed or elected having regard to –

 (a) the criteria of fitness and propriety as set out in section 20 of the Financial Services Act and in any other enactment governing the private pension schemes; and

 (b) their collective experience and knowledge of private pension schemes.

(2) Without prejudice to the generality of paragraph (1), no person shall be appointed or elected as a member of the governing body of a private pension scheme where such person –

 (a) is not of full age or has no capacity to contract;

 (b) has been convicted of a financial crime;

 (c) is an undischarged bankrupt;

 (d) is an officer of any person appointed –

  (i) as professional adviser to the scheme;

  (ii) as pension scheme administrator of the scheme;

  (iii) as custodian of the scheme;

  (iv) as long-term insurer to administer the scheme;

  (v) for managing or investing the assets of the scheme;

 (e) is disqualified from being a director under the Companies Act or any relevant Act.

(3) Notwithstanding subparagraph (2)(d) and Rule 5(4), a service provider who is promoting a private pension scheme may appoint such number of persons as it thinks fit to act as members of the governing body of the scheme provided that such appointment is in compliance with –

 (a) section 24 of the Financial Services Act;

 (b) rules 5(2) and 5(3) of these Rules; and

 (c) with any provision of the constitutive documents of the private pension scheme.

(4) Nothing contained in these rules shall prevent a private pension scheme from appointing or electing independent professionals to a governing body, provided that they do not provide any other services to the private pension scheme.

(5) Without prejudice to any other enactment, where the Commission considers that a member of a governing body is not fit and proper, the Commission may direct the private pension scheme to remove that person as a member.

(6) The Commission shall not give a direction under paragraph (5) without giving the private pension scheme and the person concerned an opportunity to make representations.

[R. 6 amended by r. 4 of GN 321 of 2013 w.e.f. 21 December 2013.]

7. Duties of the governing body

(1) The governing body of a private pension scheme shall –

 (a) be responsible for the appointment of the professional advisers and service providers of the scheme;

 (b) establish policies and procedures for appointing professional advisers, pension scheme administrators or long term insurers, custodians and asset managers, CIS managers or investment advisers or any person appointed for managing or investing the assets of the scheme;

 (c) formulate the investment policy and risk management framework of the scheme;

 (d) monitor the investments of the scheme's assets;

 (e) ensure the timely payment of pension benefits to the beneficiaries of the scheme; and

 (f) communicate with members, beneficiaries and the Commission in a timely, accurate and transparent manner.

(2) In performing its functions, a governing body shall at all times –

 (a) ensure that the private pension scheme under its governance complies with the requirements of the Act and other relevant Acts and its activities are carried out in accordance with the constitutive documents of the scheme;

 (b) act in good faith and in the best interests of the members and beneficiaries of the private pension scheme;

 (c) act with prudence and reasonable care when running the affairs of the private pension scheme;

 (d) act with skill, competence and diligence;

 (e) abide by all applicable laws;

 (f)

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