Section 50: Existing pension scheme in the private sector.

(1)
Notwithstanding any other provisions of this Act, any pension scheme in the private sector existing before the commencement of this Act may continue to exist provided that-
(a)
the pension scheme shall be fully funded and in case of any defined contribution scheme, contributions in favour of each employee including the attributable income shall be computed and credited to a retirement savings account opened for the employee;
(b) the pension funds and assets shall be fully segregated from the funds and assets of the company;
(c) the pension funds and assets shall be held by a custodian;
(d)
every employee in the existing scheme shall be free to exercise the option of coming under the Scheme established under section 3 of this Act and his employer shall compute and credit to his account, his contributions and distributable income earned as at the date the employee exercises such an option subject to the regulations, rules and standards established by the Commission;
(e)
any amount computed under paragraph (d) of this subsection shall be transferred to the retirement savings account of the employee maintained with a pension fund administrator of his choice;
(f)
all investments in assets other than those specified as permissible investment for pension funds and assets under section 86 of this Act may be maintained and from the commencement of this Act all investments shall be subject to the regulation, rules and standards established by the Commission;
(g)
the employer shall undertake to the Commission that the pension fund shall be fully funded at all times and any shortfall to be made up within 90 days or as may be prescribed by the Commission; and
(h)
the existing scheme shall be closed to new employees and such new employees shall be required to open a retirement savings account.
(2)
An employer operating any defined benefits scheme shall undertake, at the end of every financial year, an actuarial valuation to determine the adequacy of his pension fund assets.
(3)
Nothing in this section shall preclude the right of any person who has retired before the commencement of this Act and is receiving benefits from any pension scheme in the private sector from receiving his pensions as and when due in accordance with the provisions of the Trust Deed and Rules of the Scheme.
(4)
The management and custody of the pension funds for the category of pensioners referred to in subsection (4) of this section shall be undertaken by licensed Pension Fund Administrators and Pension Fund Custodians respectively.