role and mandate of the pension funds...
TRANSCRIPT
Role and Mandate of the
Pension Funds Adjudicator
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AGENDA
Mandate
Role in terms of the National Development Plan (“NDP”)
PFA Strategic Plan
Challenges and Priorities
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Mandate
Pension Funds Adjudicator (“PFA”) established in terms of
Chapter VA of the Pension Funds Act, 24 of 1956 (“the Act”)
Legislative Mandate:
…to dispose of complaints lodged in terms of section 30A(3) of the Act in a procedurally fair, economical and expeditious manner (section 30D)
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Mandate
What constitutes a complaint
Administration of a fund
Investment of its fund
Interpretation and application of its rules
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Mandate
JURISDICTION
Funds outside PFA jurisdiction
Time barred matters
Long term Insurance business
Businesses under business rescue
Section 15B surplus apportionment scheme
Trust funds
Beneficiary funds
Bargaining council funds
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Mandate
Number of complaints received
2710
5405
6763
1446
0
1000
2000
3000
4000
5000
6000
7000
8000
Complaints as at 1April 2013
New Complaintslodged 2013/2014
Complaints resolved2013/2014
Complaints as at 31March 2014
Case Activity
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Mandate
Nature of complaints
3% 5%
9% 2%
58%
3%
2%
1%
2% 1%
14%
Nature of benefit on Complaints Closed
Retirement fund
Benefit Statements
Death benefit - lump sum
Ill health / Disability benefit
Withdrawal benefit
Ongoing fund issues
Section 14 transfer
Surplus benefit
Retirement Annuity
Pension Interest
Other
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Mandate
Wow complaints were resolved
2131
412
4127
630
1141
3651
115
985
0
500
1000
1500
2000
2500
3000
3500
4000
4500
Determinations Conciliation Settlements
2011/2012
2012/2013
2013/2014
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Role in terms of NDP
High level objectives of the NDP: Eliminate poverty
Reduce inequality
Relevant enabling milestones in terms of the NDP: Ensure that skilled, technical, professional and managerial posts better reflect the
country's racial, gender and disability makeup;
Entrench a social security system covering all working people, with social protection for
the poor and other groups in need, such as children and people with disabilities;
Realise a developmental, capable and ethical state that treats citizens with dignity; and
Play a leading role in continental development, economic integration and human rights.
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Role in terms of NDP continued
OPFA’s contribution to these milestones:
Skilled workforce which reflects racial, gender and disability make up of the
population
Adoption of a three year employment equity plan (August 2013 – July 2016)
Appointment of graduate trainees
One of the commitments in terms of the plan is to ensure that the PFA achieves a
diverse workforce broadly representative of our people
The PFA’s workforce is fairly representative of the racial, gender and disability make
up of the country
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Role in terms of NDP continued
Enhancement of social security and social protection
Life assurers, pension fund organisations and employers play an important role in
social security and social protection by offering retirement funding products as well
as risk benefits in the event of unforeseen life events
In the event of disputes between pension funds, employers and their members, it is
important that the disputes are resolved in a cost efficient, procedurally fair and
expeditious manner
PFA rulings have helped uphold the integrity of the retirement funding industry and
continue to provide invaluable guidance to members and the industry on their rights
duties and obligations
The PFA’s rulings have assisted in the enhancement of social security and social
protection and will continue to do so
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Role in terms of NDP continued
Developmental, capable and ethical state which treats citizens with dignity
Citizens’ right to dignity includes ensuring that they are able to provide for
themselves even at retirement, disablement or death of the breadwinner
The PFA has dealt with a lot of complaints where members and/or their
beneficiaries would have been left financially destitute had there been no cost
effective legal recourse
Legally sound rulings have been issued to uphold members’ right to dignity
PFA continues to be an important safeguard to ensuring citizens are treated with
dignity by pension funds and all role players in pension funds
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PFA Strategic Plan (Brief overview)
Strategic Outcome Oriented Goal 1
Goal Statement
Resolve complaints in accordance with
our mandate.
To resolve complaints in a procedurally
fair, economical and expeditious manner
by complying with the ACT within the
available budget and in line with set
targets.
Dispute resolution through settlements, conciliation and determinations
Referrals to other ombud offices
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PFA Strategic Plan (Brief overview)
Strategic Outcome Oriented Goal 2
Goal Statement
Operational Excellence
Strengthening the Office’s organisational
capacity to deliver on its mandate by
becoming an employer of choice and
acting in accordance with the relevant
regulatory framework by achieving
unqualified audit reports and achieving
90% of the goals set out in this Annual
Performance Plan.
People Management
Financial Management
ICT Services
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PFA Strategic Plan (Brief overview)
Strategic Outcome Oriented Goal 3
Goal Statement
Stakeholder Relationship Management
Identify, develop and maintain key
stakeholder relationships in the pension
funds industry, government, public and
governing bodies to enhance
performance, accountability, and public
confidence.
Proactive Stakeholder management
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Challenges
Delinquent funds and employers
Lack of consumer education – compounded by low levels of
literacy and even lower levels of financial literacy
Public awareness across the country
Non-existence of appeal mechanism
Lack of enforcement mechanism of determinations
Reliance on court processes – lengthy and costly
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Priorities
Resolve as many complaints as possible within reasonable
timeframes
Effective stakeholder engagement
Become an employer of choice
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Thank you