LETTER - Setting the record straight on pension-fund waivers

The Editor, Sir:

The Financial Services Commission (FSC) writes to advise that it does not approve or grant waivers relating to pension funds as was quoted in an article in the Financial Gleaner of Friday, November 22, 2013 titled 'No deal yet for former Wyndham staff, hotel sale'.

The Pensions (Superannuation Funds and Retirement Schemes) Act and attendant regulations provide that trustees of all superannuation funds and retirement schemes must notify the FSC of their intention to wind-up a pension fund or scheme.

The act addresses the procedures to be adopted when the trustees contemplate the winding-up of the fund. However, there is no provision in the legislation which authorises the FSC to approve or grant a waiver permitting the payment of benefits prior to the approval of the winding-up of a superannuation fund or a retirement scheme.

The rationale for the FSC to approve the winding-up of a fund or scheme is to protect the fund's beneficiaries, and to ensure that the plan's assets are distributed to the beneficiaries in the manner that is prescribed by the trust deed and plan rules in accordance with the act.

Pursuant to the act, the FSC, as the regulator, is not allowed to disclose any information relating to any specific pension fund.

Janice P. Holness

Executive Director

Financial Services Commission