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Pension Scheme Members

Members’ rights are enshrined in the Pension Scheme Regulation Act 28 of 1996 (as amended by Act No 27 of 2005). Sections 18, 27, 30, 35-37 are very sepcific on the rights and these are:  


  • A pension member has the right to a copy of the pension plan rules which sets out the rights and obligations of the members


  • A pension member has the right to a benefit statement showing the member’s actual benefits and members accrued benefits every year


  • A member leaving the scheme has the right to be granted full portability of the accrued retirement benefit at the time member leaves before benefit has become payable. The following are the two scenario explaining the ‘accrued retirement benefit’


  • Under a Defined Contributions Scheme, the portable benefits shall be the total of the retirement contributions paid by the member and the members employer on leaving members account, plus interest during participation period and
  • Under a Defined Benefit Scheme, the portable benefits shall amount to the present value of the accrued retirement pension


  • A member has the right to institute legal proceedings against a manager contravening the Act, pension plan rules or regulations so as to protect his contributions under a pension scheme


  • A member has the right to be protected by the manager of the pension scheme by reporting to the Registrar of any occurrences which in the managers view could affect the rights of the members under the pension plan or under the Act


  • A member has the right to have his contributions protected by the managers taking out Liability Insurance.


  • A pension scheme member has the right to be written to by the Registrar and be notified in the event that the pension scheme is de-registered after 14 days upon arriving at the decision of de-registering the pension scheme


  • The decision of the registrar to de-register the pension scheme shall not prejudice the members rights of a contributor or creditor to payment in full of a claim against the scheme


  • Pension members have the right to be protected by the registrar in the event that the assets of a de-registered pension scheme are not sufficient for the full discharge of its obligations to its members


  • Any person aggrieved by the registrars refusal to resgister s pension scheme, re-new a certificate of registration on its expiry or decision to de-register a pension scheme may appeal to the Minister of Finance and National Planning within thirty days after the decision of the Registrar in the manner prescribed by the Minister, by statutory instrument. Where an appeal is disallowed by the Minister or the High Court, the registrar shall take adequate   steps to ensure the member’s interests under the pension scheme are protected


NOTE: Other rights as enshrined in other relevant documents such as Trust Deeds, Scheme Rules or any other regulation should also be highlighted.

You are welcome to contact the Pensions and Insurance Authority for any clarifications or questions.