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{
    "id": 1341021,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1341021/?format=api",
    "text_counter": 291,
    "type": "other",
    "speaker_name": "",
    "speaker_title": "",
    "speaker": null,
    "content": "At the point of closure, the trustees amended the trust deeds and rules to allow the closure with effect from 30th June 2011 with the following amendments: 1. Pensionable emoluments were to be increased at a fixed 5 per cent per annum with effect from 30th June 2011 and that was considered as the closing date. 2. Pensionable service for all members would be frozen at the closing date and future service would be accrued in the new Definition Contribution Scheme. This amendment was rejected by the RBA indicating that it did not conform to the existing laws in the following ways – (a) Members aged 45 years or above as at the closing day were to be given an option of remaining in the scheme and continue to earn benefits in respect of pensionable service after the closing date. The evaluation rate of 5 per cent per annum did not meet the minimum threshold of 7 per cent as set out in Clause 321 in the Prudential Guidelines for scheme conversion. Guided by RBA, the trustees amended the TDR and the closure terms of the scheme were then revised to ensure compliance and members above 45 years were given the option of remaining in the scheme. (b) The change of the evaluation rate from 5 per cent to 7 per cent led to the first re-computation of benefits in 2017 for all members who had left and benefits were calculated in line with the original closure terms and shortfalls were paid with interest from the original date of calculation. In 2017, the trustees received complaints from pensioners that the salary applied in the re-computation was not the salary at the point of exit but rather the salary at the closure date of 30th June, 2011, which grew at 7 per cent. The re-computation of the benefit was done and the additional benefits paid. In 2019, the retirees petitioned the RBA questioning the trustees’ use of pensionable salary capped as at June 2011 and not salary preceding retirement date. These complaints have developed and led to a decision by the RBA dated 18th April, 2019 and the tribunal case. Hon. Temporary Speaker and Members, I have learnt this morning that we have a new direction from the RBA. I would like to seek your indulgence – that, you allow me to go and look at the new regulations that have been issued and provide a substantive report as to the effective dates. That will address parts two and three of the Question in a future date, when I am allowed to do so. Thank you."
}