Valuation of bonds: Notice on amendments to Retirement Benefits Regulations


In a significant development for the retirement benefits industry, Legal Notice No. 18 of 2024 has introduced amendments to the existing Retirement Benefits (Managers and Custodians) Regulations, 2000, specifically targeting the requirements for the valuation of the scheme fund outlined in Regulation 5 (2) (e) (i).

Effective from December 21, 2023, the amendments bring about crucial changes, particularly in the valuation of debt instruments. According to the new provisions:

  • The value of debt instruments held to maturity must now be reported at amortized cost.
  • The fair value method shall be used in determining the value of both debt instruments available for sale and equities.

These adjustments mark a shift in the valuation methodologies employed within the industry, emphasizing transparency and accuracy in reporting.

Furthermore, Legal Notices Nos. 19, 20, 21, and 22 of 2024 have extended their impact to various regulations governing the determination of net interest to be declared and credited to members. The affected regulations include:

  • The Retirement Benefits (Occupational Retirement Benefits Schemes) Regulations, 2000.
  • The Retirement Benefits (Individual Retirement Benefits Schemes) Regulations, 2000.
  • The Retirement Benefits (Umbrella Retirement Benefits Schemes) Regulations, 2017.
  • The Retirement Benefits (Income Drawdown Funds) Regulations, 2023.

As per these amendments, net returns declared and credited to members’ accounts will now exclude unrealized gains and losses arising from changes in the value of debt instruments (bonds) held by the scheme at the end of the financial year.

It is crucial for stakeholders in the retirement benefits industry to take note that these changes took effect from December 21, 2023. Investment reports and financial statements as at December 31, 2023, must adhere therefore to these amended regulations.

This development underscores the industry’s commitment to adapting and enhancing regulatory frameworks to ensure the integrity and stability of retirement benefits schemes. Stakeholders are encouraged to familiarize themselves with these amendments and promptly implement necessary adjustments to comply with the revised regulations.

For further inquiries write to us via [email protected]

To download the Notice and the revised regulations, use the links below:


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