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Establishment of a Consultative Committee
The function of a consultative committee is to advise the scheme administrator
on all aspects of the scheme. In this way, members' interests are better
protected, because the consultative committee provides a ready interface
or channel for communication between the scheme members, the relevant
employer and the administrator on the operation of the scheme.
The Occupational Retirement Schemes (Consultative Committees) Rules contain all the detailed procedures for the constitution and operation of such committees. A consultative committee may be formed if the scheme has more than 20 members and the majority consent of the scheme members has been obtained. Follow these steps if you're planning on forming a consultative committee:-
- At least 10 supporting scheme members should propose to constitute a consultative committee by sending to every scheme member a written notice together with a consent form. Names and addresses of scheme members can be obtained from the designated person of the scheme.
- Members who are supportive of the idea should return the signed consent form to the proposing members within 21 days.
- If consent is obtained from a majority of the scheme members, the proposing members should supply the designated person of the scheme with the signed consent forms within 28 days of the issue of the notice. The designated person must make them available for inspection by scheme members at an inauguration meeting to be arranged by him or her.
- Members may elect amongst themselves members of the consultative committee at the inauguration meeting. The number of members of the consultative committee can range from five to 20, provided that the number does not exceed 25% of the total membership of the scheme.
- After the consultative committee members have been elected, they should elect from among themselves a chairman and a secretary.
- After the constitution of the consultative committee, the scheme administrator and the employer of the scheme must be notified.
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