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Minimum Benefits

PENSION FUNDS SECOND AMENDMENT ACT - Minimum Benefits ILG and EY Rates

In terms of Board Notice 37 of 2007 the Index Linked Gilt (ILG) and Earnings Yield (EY) Rates required to calculate the discount rate applicable prior to retirement in terms of section 14 (2) (a) (i) (bb) of the act can be found on the following link

These rates have been calculated on the following bases:

ILG - this is the average yield to maturity (weighted by the size of the amount on issue) of Government linked gilts with a longer term to maturity. 
EY - this is the earnings yield
Minimum Benefits ILG and EY Rates

PENSION FUNDS SECOND AMENDMENT ACT – Proxy Investment Returns, d.

In terms of Board Notice 37 of 2007 Paragraph 6, where the fund is not able to determine the net investment return earned by the fund over a period, then if the fund does not wish to use a pooled investment portfolio which is broadly representative of the investment mix of the fund as a proxy, then it may use the default rates as published by the Authority.

These rates can be found here