Recent guidance from South Africa’s Financial Sector Conduct Authority (FSCA) addresses pension funds’ use of hybrid annuities. Hybrid annuities offer a combination of a living and guaranteed life annuity in a single product solution. Although the FSCA has no objection to hybrid annuities, the agency takes the view that pension funds need an exemption to offer this option.
Mercer Marsh Benefits has provided an analysis that highlights:
Download the print-friendly PDF to read the full analysis.