Changes to Pension Funds On/Offshore Investments
CIRCULAR NO. 2 OF 2023
REF: 10/4/23-II
DATE: MARCH 24, 2023
TO: BOARD OF TRUSTEES AND PRINCIPAL OFFICERS OF RETIREMENT FUNDS, RETIREMENT FUNDS ADMINISTRATORS AND FUND MANAGERS
SUBJECT: CHANGES TO PENSION FUNDS ON/OFFSHORE INVESTMENTS
- Following the changes in the Retirement Funds Act (2022) and the consultative engagements, in particular, related to PFR2, the Authority hereby directs as follows;
- The pensions domestic investment limits shall be increased up to fifty (50) percent of total asset values over a five (5) year period, in a gradual approach as shown on the table below.
- The revised PFR2 shall be effected from June 1, 2023 and the compliance level of individual retirement funds shall be monitored in line with the dates indicated in the table.
|
Domestic Investment Limit (Percent) |
Target Date |
|
38 |
December 2023 |
|
41 |
December 2024 |
|
44 |
December 2025 |
|
47 |
December 2026 |
|
50 |
December 2027 |
- The revised PFR2 document, which will indicate specific changes in asset classes and investment limits will be released soon.
- Retirement funds are directed to commence the transition process so that the specified limits are achieved at the targeted dates and regular returns submitted to the Authority should provide progress reports towards meeting the annual goals.
Yours faithfully,
Oduetse A. Motshidisi
CHIEF EXECUTIVE OFFICER
