PENSION: SUBSIDIARY LEGISLATION

PENSION: SUBSIDIARY LEGISLATION

PENSION (LEVY) ORDER

ARRANGEMENT OF REGULATIONS

    REGULATION

    1.    Citation

    2.    Application

    3.    Pension levy

    4.    Exemption from paying the pension levy

    5.    Penalty for non-compliance

    6.    Administrative penalties

        SCHEDULE

G.N. 58/2024

under s. 137

1.    Citation

    This Order may be cited as the Pension (Levy) Order.

2.    Application

    This Order shall apply to all pension entities.

3.    Pension levy

    (1) A pension entity shall pay a pension levy to the Registrar, in the manner prescribed in the Schedule.

    (2) A pension entity shall pay the pension levy within four months after the end of financial year, through an electronic funds transfer.

    (3) The pension levy shall be calculated based on audited financial statements of the pension entity.

    (4) Where the audited financial statements referred to under subparagraph (3) are not available, pension levy shall be calculated based on the call report for the period ending December for each pension entity.

    (5) For purposes of paragraph (4), a “call report” shall have the meaning as ascribed to that term under the Financial Services (Submission of Information relating to the business of Pension Funds) Directive, 2018.

4.    Exemption from paying the pension levy

    (1) A pension entity shall be exempted from paying the pension levy—

    (a)    until after eighteen months from the date of its licensing or registration with the Registrar; or

    (b)    where the pension entity is under receivership, administration, liquidation or has been dissolved.

    (2) The exemptions in subparagraph (1) shall not apply to—

    (a)    a pension fund registering to be a stand-alone or self-administered after it has operated under an unrestricted pension fund; or

    (b)    a pension entity arising from a merger, acquisition, transfer, amalgamation, conversion or similar corporate transaction.

5.    Penalty for non-compliance

    (1) The Registrar may impose the following monetary penalties for violations of this Order—

    (a)    for a pension fund, an administrator, a pension services company or a provider of programmed withdrawal up to K50,000,000;

    (b)    for pension broker or pension advisor up to K10,000,000; and

    (c)    for natural persons who are members of the board, or senior management up to K10,000,000.

    (2) The monetary penalties in subparagraph (1) shall be paid to the Registrar through an acceptable form of electronic payment, within ten working days after being notified of the violation.

6.    Administrative penalties

    In addition to the penalties prescribed under paragraph 5, the Registrar may impose other administrative penalties as provided for under the Act or the Financial Services Act.

para. 3 (1)

SCHEDULE

CALCULATION OF PENSION LEVY

PART—I

Pension Entity			Annual levy rate-per centage of net assets
Pension fund	. .	. .	0.10%
Provident fund	. .	. .	0.05%
Voluntary personal pension fund	. .	. .	0.00%
Corporate or individual trustee	. .	. .	0.00%

PART—II

1.    A pension administrator shall pay a minimum pension levy of K2,000,000 or an amount equivalent to 0.5 per cent of its audited annual profit after tax for the preceding year, whichever is greater, provided that the amount shall not exceed K8,000,000.

2.    A pension services company shall pay a minimum pension levy of K3,000,000 or an amount equivalent of 0.5 per cent of its audited annual profit after tax for the preceding year, whichever is greater, provided that the amount shall not exceed K10,000,000.

3.    A pension broker shall pay a minimum levy of K500,000 or an amount equivalent of 0.5 per cent of its audited annual profit after tax for the year, whichever is greater, provided that the amount shall not exceed K2,500,000.

4.    A pension advisor shall pay a minimum levy of K500,000 or an amount equivalent of one per cent of its audited annual profit after tax for the year, whichever is greater, provided that the amount shall not exceed K2,500,000.

5.    A provider of programmed withdrawal shall pay a minimum levy of K500,000 or an amount equivalent of 0.5 per cent of its audited annual profit after tax for the year, whichever is greater, provided that the amount shall not exceed K2,500,000.