RETIREMENT BENEFITS

RBA sets measures to cushion industry from Covid-19 effects

In Summary
  • The Authority has allowed schemes with financial year end of December 31 2019 that have not finalized their audited financial statements to pay retirements levy due April 30, 2020 based on the last audited as at 31 December 2018.
  • The Authority has allowed schemes with financial year end of December 31 2019 that have not finalized their audited financial statements to pay retirements levy due April 30, 2020 based on the last audited as at 31 December 2018.
The Retirement Benefits Authority organises annual open days to the public about pension schemes
AFTER EMPLOYMENT: The Retirement Benefits Authority organises annual open days to the public about pension schemes
Image: File

The Retirement Benefits Authority(RBA) has set various industry benefits in light with the ongoing Covid-19 pandemic.

The Authority has allowed schemes with financial year end of December 31 2019 that have not finalized their audited financial statements to pay retirements levy due April 30, 2020 based on the last audited as at 31 December 2018.

“Any resultant underpayments shall be paid once the accounts are finalized and such underpayment will not attract penalties,” RBA said in a statement.

Overpayment will be refunded or credited against future levy.

The Authority has allowed schemes with financial year end of December 31 2019 that have not finalized their audited financial statements to pay retirements levy due April 30, 2020 based on the last audited as at 31 December 2018.

Where employees are still working, the employer is expected to contribute both the employee and employer portions.

If employees are on unpaid leave, they will be considered absent from work and the contributions of the employer and employee shall be suspended for the period they remain unpaid or for the maximum period defined in the rules.

If an employee seeks to temporarily suspend contributions, they are advised to seek consensus of the members or through their representatives.

Following the pandemic, the Trustee Development Training program has also been postponed until further notice and RBA has deferred the requirement for trainees to be trained within six months.

Schemes facing challenges in implementation of the Good Governance Guidelines will be allowed to defer compliance so long as they explain the challenges as provided under section 7 of the guidelines.

Trustees may postpone scheme annual general meetings and reschedule their own meetings.

“We are closely monitoring the developments occasioned by the pandemic , the impact on the industry and will continue to update the industry as appropriate,” read the statement.

Stakeholders have been urged to avoid physical visits to the Authority’s offices and exploit other alternative platforms to reach out such as the toll free line, 0800720300.