Section 21: Under-funded private pension schemes

21. Under-funded private pension schemes (1) Where a private pension scheme is required to meet the technical funding requirement under this Act and in any FSC Rules and the requirement is not satisfied or the scheme is otherwise in contravention with this Act or any FSC Rules relating to technical funding requirement and technical provisions, the scheme shall— (a) cause the sponsoring employer to make a payment, as determined by an actuary, so that it meets its technical funding requirement and complies with sections 18, 19 and 20, or any FSC Rules relating to technical funding requirement and technical provisions; or P32A – 13 [Issue 5] Private Pension Schemes Act (b) in conjunction with an actuary and the sponsoring employer, develop and submit to the Commission an appropriate contingency plan structured on an annual basis or as the Commission may determine, which shall ensure that it meets the technical funding requirement and complies with sections 18, 19 and 20, or any FSC Rules relating to technical funding requirement and technical provisions, within a predetermined time frame approved by the Commission. (2) Notwithstanding the submission of a contingency plan under subsection (1) (b), the Commission may take such action as may be specified in FSC Rules or as may be determined by the Commission. (3) Except in such circumstances as may be determined by the Commission, where a sponsoring employer fails to secure the technical funding requirement in accordance with a contingency plan, the private pension scheme shall immediately report the matter to the Commission and inform the beneficiaries of the scheme in writing. (4) Where a report is made under subsection (3) or section 19 (2), or where the Chief Executive has reasonable ground to suspect that a private pension scheme is not in compliance with section 18, 19 or 20, or any FSC Rules relating to the technical funding requirement and technical provisions, the Chief Executive may direct the governing body of the scheme to submit to him— (a) information relating to the nature and causes of the suspected failure or to such other matters as may, in the opinion of the Chief Executive, lead to its suspected failure; (b) a report by the actuary of the scheme on its state of technical funding requirement or on such other matters as may be requested by the Chief Executive; and (c) such new contingency plan acceptable to the Chief Executive that is aimed at restoring the funds of the scheme to a financially sound condition. (5) Where the Chief Executive has received information under subsection (1) or (4), he may— (a) direct the governing body of the scheme to adopt the new contingency plan or course of action proposed, or such other course of action acceptable to the Chief Executive as will bring the scheme into compliance with, or prevent it from being in contravention of section 18, 19 or 20, or any FSC Rules relating to technical funding requirement and to technical provisions; (b) authorise such modification of the course of action referred to in paragraph (a) as he considers appropriate; [Issue 5] P32A – 14 Revised Laws of Mauritius (c) where it is reasonably necessary in the interests of the beneficiaries, take such measures as are appropriate, including issuing a direction, appointing a conservator, revoking its licence or authorisation, or applying for the winding up of the scheme. (6) The Chief Executive may, in considering any decision under this section, consult the auditor or ch modification of the course of action referred to in paragraph (a) as he considers appropriate; [Issue 5] P32A – 14 Revised Laws of Mauritius (c) where it is reasonably necessary in the interests of the beneficiaries, take such measures as are appropriate, including issuing a direction, appointing a conservator, revoking its licence or authorisation, or applying for the winding up of the scheme. (6) The Chief Executive may, in considering any decision under this section, consult the auditor or actuary of the private pension scheme, as appropriate.