How enhanced Audit Committee oversight can yield improvements on concerning trends from the

Adjudicator’s Office

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Complaint trends

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2010/2011 2011/2012 2012/2013 2013/2014 2014/20150

1000

2000

3000

4000

5000

6000

7000

8000

6220

5368 5161 5405

7010

New Complaints

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12%

5%

43%8%

6%

9%

5%

3%

10%

0%

Geographical area of residence

Eastern CapeFree StateGautengKwaZulu-NatalLimpopoMpumalangaNorth WestNorthern CapeWestern CapeForeign Country

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Withdrawal benefit

Death benefit - lump sum

Ongoing fund issues

Benefit Statements

Retirement fund

Retirement Annuity

Ill health / Disability benefit

Section 14 transfer

Other

Pension Interest

0 10 20 30 40 50 60 70

Nature of benefits on Complaints Closed

Percentage

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Common Pitfalls

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Conflate governance issues as administration leading to improper delegation

Lack of proper oversight and feedback Infrequent liaison with Regulatory authorities

Common Pitfalls

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Withdrawal benefits Delay in payment or non-payment of benefit

Non-compliance with section 13A Contribution unpaid or paid late – often only after complaint has been lodged Unallocated contributions

Raising late payment interest in terms of Regulation 33 Proper disclosure of arrear contributionsDeath benefits Beneficiaries properly identified Extent of dependency (supporting documentation) Mode of payment (proper investigation)

Benefit payments

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Section 19(4) of the Act – prudential investments Funds invested in Sharemax and like schemes Section 18 schemes not coming to fruition

Investment switches Was it in accordance with the instruction from member (documentation)

Was it implemented on time Issuing of housing loans

Were the guarantees issued for the right purpose Abuse – short term loans with exhorbitant fees and credit life insurance?

Maladministration

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Is the process in terms of the rules and the Act Did payment / receipt occur within 60 days of approval Documentation – Is there approval for each transfer

Section 14 Transfers

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Benefit statements Defined benefits – simpler narration of benefits and access rules Defined contribution – Opening & closing balance

Information provided to members

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Questions / Discussion

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