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 all Government linked gilts (i.e. R189, R197, R198 and R202) provided the gilt had been issued and the term to maturity was at least 10 years at the required date. New gilts will be added as and when issued in the future.
Minimum Benefits ILG and EY Rates
EY - this is the earnings yield as published by I-Net using the CI01 up to May 1995 and the J203 thereafter.
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 Registrar of Pension Funds.
These rates can be found here