Pensions

The Special Funds (Regulation) Act, 2002 ("Act") which came into force on 1st October 2002 aims at facilitating the establishment of funded second pillar retirement arrangements. The Act provides a regulatory framework for the arrangement pursuant to which an employer or contributor promises the employee or beneficiary retirement benefits. The said legislation also allows for the registration of investment vehicles (called Retirement Funds) through which Retirement Schemes can hold and invest any contributions received. It also provides for the registration of various service providers that may provide services in connection with a registered Retirement Scheme and/or Retirement Fund.

The Act allows the establishment of pension schemes in the form of: [a] trusts; [b] by contract or [c] SICAV.  Pension schemes can be in the form of occupational or personal pension schemes, and they can be of a ‘defined benefit' or ‘defined contribution' type. 

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