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How will I be affected if my employer decides to participate in another retirement fund?

Your employer has the right to terminate its participation in a retirement fund and transfer all members to another retirement fund. There is a specific process that needs to be followed:

  1. Your employer will have to give prior notice to its employees and to the existing retirement fund. 
  2. The transfer must be approved by the Financial Services Conduct Authority (“FSCA”). The FSCA will only approve the transfer if it is satisfied that the transfer is reasonable and equitable, and that members’ rights and reasonable benefit expectations are fully protected.
  3. Members must be provided with sufficient information about the transfer to enable them to consider their position.
  4. Members must be given at least 30 days to object to a transfer. 
  5. The fact that members object to a transfer, does not necessarily mean that the transfer cannot proceed. 

Important note:

If the transfer could result in members being prejudiced, the transfer must be approved by at least 75% of the members.

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