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Series 200 - Retirement funds

 

Series 200 provides guidance in carrying out Retirement fund related actuarial work. The following Standards of Actuarial Practice (SAPs) and Advisory Practice Notes (APNs) are in force:

SAP 201: Retirement Funds - Actuarial Valuation Reports and Related Topics (pdf)
SAP 203: Defined Contribution Retirement Funds – Criteria for Exemption in Terms of Regulation 2 of the Pension Funds Act, 1956 (“The Act”) (pdf)
APN 204: Actuarial Discretion in Terms of Retirement Fund Rules (pdf)
APN 206: Aids and Retirement Funding (pdf)
APN 207: Accounting for Retirement Benefits (pdf)
SAP 208: Costing of Past Surplus Utilised Improperly (pdf)

 

Other guidance documents 

 

Early in 2004, a draft PGN205 entitled "COMMUNICATION TO MEMBERS OF DEFINED CONTRIBUTION RETIREMENT FUNDS" was distributed to members for comment. Following strong objections from a few members, the PGN was sent back to the Retirement Matters Committee for review.

It has been agreed not to proceed with PGN205, but members need to be aware that they are subject to UK guidance note GN34, a copy of which is linked to this paragraph.

Note that there is not much in this GN that does not apply to South Africa (except paragraph 1.3 which becomes redundant).

This effectively means that:

The GN does apply to South Africa.

  • It even applies where, for example, illustrations are provided for purposes of an article in the press (see paragraph 1.2)
  • The standards for any illustrations in DC funds are set quite high.
  • In the light of previous objections that the draft PGN205 may expose members to litigation risks, it should be noted that:
  • The GN is classified as “recommended practice”.
  • The GN is peppered with guidance as to what the actuary “should” do (e.g. the whole of Section 3 “Calculations”, Section 4 “Disclosure” and
  • Section 5 “Comparison of Defined Benefit and Defined Contribution Benefits”).

 

APN 205: PENSION FUNDS SECOND AMENDMENT ACT, 2001 (pdf)
GN34 (pdf)