Retirement Funds and Covid-19: Legal Perspective on Employer Contributions
In this informative webinar, we provide a legal perspective on how the Covid-19 pandemic has impacted retirement funds and employer contributions. Our expert, **Jonathan Mort**, delves into the tricky questions surrounding umbrella funds and the potential suspension or reduction of contributions.
The general rules of umbrella funds typically set out provisions applicable to all participating employers. Special rules, on the other hand, are designed to add necessary content to the general rules, such as setting the actual rate of contribution, retirement age, and insurance benefits. These individualized provisions already exist in the general rules and must be registered under section 12 of the Act ((source)[https://www.acts.co.za/pension-funds-act-1956/pension_funds_act_1956.htm]).
The ongoing Covid-19 pandemic has created unique circumstances, leading to a potential need for employers to suspend or reduce contributions. Our expert explores whether special rules need to be amended as well and provides insights into legally navigating these changes.
As the pandemic has significantly impacted pension funds, it is crucial to understand the legal provisions for reducing contributions and ensuring compliance. We discuss the two ways of reducing contributions: reducing the fund salary or reducing the rate of contribution. **Jonathan Mort** outlines the enabling provisions in the general rules and explains why replication in special rules may not be necessary to meet legal requirements ((source)[https://www.youtube.com/redirect?event=video_description&redir_token=QUFFLUhqbUNnaXVaVlBfbjBHRGxFYVNkd2QwMzhfTllkQXxBQ3Jtc0ttLXdkQ01JazZaOEFxNXo3SGxjczNHWEFVZ0lDSzE1bGctLXVEQXllYkVPRldFMlBFWV9EZFhLektoM3RYa3RsMFpUd3BYaTBuT052Y3JrMnpXaGpTWXlUd0czc0JHSE9BTUxhZVpZMlRGQkgwUQ&q=https%3A%2F%2Fwww.acts.co.za%2Fpension-funds-act-1956%2Fpension_funds_act_1956.htm).
Our legal expert also addresses the role of special rules in compliance supervision and the impact of endlessly amending these rules as the economic effects of the pandemic change. Ultimately, the comprehensive insights provided shed light on the legal requirements and considerations for employers and pension fund trustees during these unprecedented times.
Watch our webinar to gain valuable legal insights into managing retirement funds during the Covid-19 pandemic. It’s a must-watch for legal professionals, employers, and trustees looking to navigate the challenging landscape of retirement funds and employer contributions.
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