By Lynford Simpson, News EditorTHE HOUSE of Representatives, on Tuesday, passed the Pensions (Superannuation Funds and Retirement Schemes) Act, 2004 with 48 amendments.
Piloted by Fitz Jack-son, state Minister for Finance, the passage of the landmark legislation paves the way for proper management of pension schemes and retirement funds.
The Financial Services Commission (FSC) will administer the new pensions regime. It will be responsible for issuing licences and granting approvals and registration. Provision is made in the Act for appeals from decisions of the Commission to refuse to grant or renew licences, to refuse approval and registration or to suspend or cancel a licence or registration.
There are large penalties and jail terms for persons found in breach of the Act. Any company which performs duties as an administrator or investment manager without being licensed under the Act is liable on summary conviction before a Resident Magistrate to a fine not exceeding $5 million. Additionally, any person who performs duties as a trustee without being registered under the Act commits an offence and could be fined up to $3 million or imprisoned for up to three years.
PHASE ONE AND TWO
Mr. Jackson explained that a decision was taken to embark on pension reform in two phases as consensus was not reached on critical areas, including whether pension funds should be portable.
Phase one provides for the enactment of legislation for the overall supervision of private pension systems, while phase two will address other aspects related to making adequate arrangements for retirement, following the completion of a public education exercise.
