The Financial Services Commission ("FSC") has issued a circular letter on 23 April 2021 in relation to the new guidelines for the "conversion" or "shift" of defined benefit pension schemes to defined contribution pension schemes. The objective of the guidelines is to provide for a regulatory framework for such matters. In the circular, the FSC outlined the meaning of "conversion" and "shift" and explained inter alia that the guidelines would require a full disclosure of information to their members by private pension schemes and sponsoring employers, prior to any conversion or shift of their schemes. The guidelines also seek to address the issues of underfunded defined benefit schemes.
Read the circular letter HERE.
Read the guidelines HERE.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.