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The case for the boards of trustees of standalone retirement funds to consider an umbrella fund strategy as an alternative has been strengthened by the recent introduction of the “default” regulations. These regulations came into effect on September 1 2017, with implementation from March 1 2019 for all retirement funds registered before March 1 2018. The regulations aim to ensure the protection, preservation and consolidation of retirement benefits as well as the sustainability of post-retirement benefits paid to members. Regulation 37 deals with occupational, defined contribution pension and provident funds excluding retirement annuities, preservation funds and defined benefit assets. Occupational retirement funds (pension and provident funds) are dealt with by Regulation 38, including paid-up fund members. Regulation 39 deals with annuities. All three sections require that funds make appropriate default options available to members and that all related fees and charges be simple t...

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