WEDNESDAY, MAY 1, 1991

SCHEME

MEET

THEY WERF SEPARATION OF ASSETS OF THE RETIREMENT THOSE OF THE EMPLOYER, PROVISION OF SUFFICIENT FUNDING TO SCHEME'S LIABILITIES, INDEPENDENT ANNUAL, AUDIT OF THE ACCOUNTS OF SCHEME AND ADEQUATE DISCLOSURE OF INFORMATION TO SCHEME MEMBERS.

FROM

THE

THE

THE BILL TRUST ON

OR

"TO ACHIEVE THE PRINCIPLE OF SEPARATION OF ASSETS,

GROUNDED REQUIRES

SCHEMES SHOULD BE THAT RETIREMENT SUBJECT TO AN INSURANCE ARRANGEMENT.

THAT "IN RESPECT OF THOSE GROUNDED ON TRUST, THE BILL REQUIRES

ALL TIMES," HE THERE SHOULD NORMALLY BE AN INDEPENDENT TRUSTEE AT SAID,

CENT ISSUED BY

FURTHERMORE, THE BILL STIPULATED THAT NOT MORE THAN 10 PER OF THE ASSETS OF A SCHEME MIGHT BE INVESTED IN SECURITIES THE EMPLOYER OR HIS ASSOCIATES.

"INVESTMENT BY WAY OF LOANS TO THE EMPLOYER OR ASSOCIATES STRICTLY PROHIBITED, HE ADDED.

-

ARE

SCHEMES WERE IMMEDIATE

ON THE QUESTION OF FUNDING, MR MACLEOD SAID ALL

TO ASSETS

MEET THEIR SUFFICIENT TO REQUIRED

MAINTAIN LIABILITIES, THAT WAS, ALL SCHEMES MUST BE SOLVENT.

HE SAID FOR DEFINED CONTRIBUTION SCHEMES, CONTRIBUTIONS WERE TO BE MADE IN ACCORDANCE WITH THE RULES OF THE

SCHEME.

FOR DEFINED BENEFIT SCHEMES, CONTRIBUTIONS WERE TO BE MADE

WITH ACTUARIAL ADVICE.

ACCORDANCE

"THE

BILL

STIPULATES

THE MINIMUM

IN

REQUIREMENTS

FOR ONGOING

ACTUARIAL CERTIFICATION.

SCHEME THE SCHEME

"TRIENNIAL ACTUARIAL REVIEWS ARE REQUIRED AND, WHERE A IS INSOLVENT, ANNUAL REVIEWS ARE REQUIRED TO ENSURE THAT

HE ADDED. ACHIEVES SOLVENCY WITHIN THREE YEARS,

POR

++

INTO

CAME LEGISLATION WHICH EXISTED BEFORE THE SCHEMES

WERE TRANSITIONAL FORCE, THE ACTING FINANCIAL SECRETARY SAID THERE PROVISIONS TO ALLOW SHORTFALLS IN FUNDING TO BE MET WITHIN FIVE YEARS.

*

IN RESPECT OF AUDITS AND ACCOUNTS, HE POINTED OUT THAT THE BILL AND REQUIRED THE TRUSTEES OR SCHEME MANAGERS TO KEEP PROPER ACCOUNTS RECORDS OF ALL FINANCIAL TRANSACTIONS OF A RETIREMENT SCHEME.

BY

AN

ΤΟ

AN ANNUAL STATEMENT OF ACCOUNTS AND A REPORT PREPARED AUDITOR INDEPENDENT OF THE EMPLOYER WERE REQUIRED TO BE SUBMITTED THE REGISTRAR, HE ADDED.

THE

ATPOINTED

BILL FOR

AS REGARDS INFORMATION DISCLOSURE, MR MACLEOD SAID

MIGHT RE COMMITTEES THAT CONSULTATIVE PROVIDED CONTRIBUTORY RETIREMENT SCHEMES WITH MORE THAN 50 MEMBERS.

THE WHITE OF THE

"THIS PROVISION IS DIFFERENT FROM THAT PROPOSED IN BILL, WHICH STIPULATED THAT FOR ALL SCHEMES WHERE A MAJORITY MEMBERS SO WISHED, A CONSULTATIVE COMMITTEE SHOULD BE ESTABLISHED," HE SAID.

/HE NOTED

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