Trustee Report Road Freight and Logistics Industry Provident Fund 2014

Transcription

1 Trustee Report Road Freight and Logistics Industry Provident Fund 2014 INTRODUCTION The Trustees of the Road Freight and Logistics Industry Provident Fund (RFLIPF) have pleasure in presenting their report for the financial year ended 28 February This report aims to provide members with an overview of the activities, management, administration and financial status of the Fund during the past financial year and to illustrate how the Fund creates and sustains value for all stakeholders in the short, medium and long term. FUND OVERVIEW During the period under review the Road Freight and Logistics Industry Provident Fund (RFLIPF) has made great strides in improving benefits and services to members of the Fund. The Fund has assets of R3.4 billion and bonuses of 23% were allocated to members over the last two years. Funeral benefits for members were improved without an increase in premiums and pension-backed home loans were introduced to members in A data reconstruction project was completed by the administrator, SALT Employee Benefits. The objective of the project was to restore and maintain the integrity of the member database. This process was signed off by the Board of Trustees and the administrator has loaded all respective amounts on member records accordingly. Since taking over the administration from the previous administrator, SALT Employee Benefits has paid more than claims to members and beneficiaries. After the mandatory waiting periods (resignations and disability), if all documents have been received, claims are paid within 14 working days. The Board implemented a communication strategy in 2013 that was further enhanced in Various communication channels exits including the Fund website and Facebook pages; benefit flyers; Fund induction video; member and employer newsletters and face to face member presentations. 1

2 The Fund's communication efforts were rewarded at the 2014 annual IRFA Conference where the Fund was awarded with a Gold Standard Certificate for excellence in communication. Annual General meetings are planned in all provinces in Corporate governance and integrity is very important to the Fund and its various service providers. The administration of your Fund is done in accordance with the Rules of the Fund and in compliance with the provisions of the Pension Funds Act. The Fund s responsibility in ensuring transformation at all levels is significant. In this regard the Fund makes strategic contribution to social development though the implementation of its Socially Responsible Investments (SRI). This policies support initiatives through the investment of assets in terms of an SRI strategy that allocates a percentage of assets to appropriate SRI projects and opportunities and the use of BEE compliant service providers. The Board of Trustees has a fiduciary duty to act in good faith, with due diligence and care, to avoid conflicts of interests and act with impartiality in respect of all its members, being ultimately accountable and responsible for the performance and affairs of the Fund. The Board of Trustees will continue to act in the best interest of the members of the Fund at all times. MANAGEMENT AND CONTROL OF THE FUND The Board of Trustees consists of ten Trustees of which six are member-elected Trustees and four are independent professional Trustees. Over the period under review, the following persons were Trustees: Member-elected Trustees Tabudi Ramakgolo Solly Mothibedi Zack Mankge R Boloyi Johnson Gumede Vacant Independent Professional Trustees M Mabaso (Chairman) Jolly Mokorosi Mandla Nkosi Mabatho Seelso 2

3 Principal Officer Joe Letswalo The Principal Officer is the executive representative of the Fund, and official contact person for the Financial Services Board. The Principal Officer is required to sign all Fund documentation, and has the same fiduciary responsibilities to the Fund as those pertaining to the Trustees. The Funds are run with a sub-committee structure reporting to the full board. The following subcommittees are in place: Administration Audit & Investments To assist the Trustees with the management and control of the Fund, the following appointments were in place for the year under review: Administrators o Front Office : Sanlam Employee Benefits o Back Office : SALT Employee Benefits Auditors : Deloitte & Touche and Mazars Actuary : Garth M Barnard (Moruba Consultants and Actuaries) Investment Advisor : Novare Actuaries and Consultants Risk Insurer : Guardrisk Life Limited Asset Managers : Absa Asset Management Afena Capital Argon Asset Management Old Mutual Investment Group JM Busha Asset Management Mazi Capital Prowess Investment Managers Momentum Wealth Limited Vunani Fund Managers 3

4 REVIEW OF THE YEAR S ACTIVITIES Fund Performance All member contributions plus a portion of the employer contributions are invested on a monthly basis so that members' Fund value/savings can grow. The growth accumulated from these investments is allocated annually to members in the form of an annual bonus declaration. The Bonus allocation for the past 2 years is: 13% for % for 2014 This means that the Fund has grown by 23% over the last two years. Actuarial Valuation The last statutory Valuation was performed as at 28 February 2011 and the valuator confirmed that the Fund was in a financially sound position. CHANGES TO THE RULES OF THE FUND No changes were made to the Rules of the Fund during the period under review. SUBSEQUENT EVENTS The Fund is in a process of finalising a new investment policy where the investments will be unitised and monthly pricing will be uploaded to members values. The unit price tracking allows for accurate determination of the asset value of the Fund as well as an accurate determination of the Fund's growth in asset value. 4

5 ENHANCED BENEFITS Funeral The funeral benefit that pays out if you and/ or any of your ***immediate family members die was increased in 2013 and now pays as follows: Member/**** spouse R Children years R years R years R months R Stillborn R ***An immediate family member is your spouse or your child (either biological or adopted) ****A spouse is a husband or wife recognised by South African law Repatriation of mortal remains A repatriation of mortal remains benefits was added in 2014 as a complimentary service to the funeral benefit. This benefit covers the main members only. In the event of the member s death outside of their home town (at least 150 km away), assistance will be granted with the necessary formalities and payment will be made towards the cost of transporting the deceased to a location in their home town. Additional services include: Assistance with autopsy and referral to pathologist if required; Referral to reputable and recommended undertakers; Telephonic assistance with the arrangement of funeral or cremation, should the event occur outside the normal place of residence; 5

6 Transferring of ashes to the normal place of residence after cremation within the territory; Assistance with obtaining the death certificate should the death have occurred in unnatural or unusual circumstances; Arranging counselling with the relevant psychologist; Arranging specialised counselling particularly relating to the loss of a child; Assistance with the legality regarding funeral procedures such as the death certificate and removal of the body; Assistance with legal claims against insurance policies including short term insurance, life assurance, funeral policies and personal accident cover. Pension-backed loans The Fund introduced Pension-backed housing loans in Members can use up to 60% of their Fund credit to buy or renovate a home. The loan is provided through First National Bank. IMPORTANT INFORMATION Nomination of Beneficiaries One of the most challenging tasks facing the Trustees is to ensure that lump sum benefits paid on the death of a member are equitably allocated to all known dependants of that member. Although the nomination form is not binding on the Trustees, it does serve as an important guide in the event of the death of a member. The Trustees therefore urge all members of the Fund to ensure that their Nomination of Beneficiary forms are completed, and thereafter updated on a regular basis, to reflect an accurate record of the status of each member s dependants and/or nominees. This form can be obtained from your nearest Sanlam Walk-in Centres or from the Fund's web pages at Completed forms must be returned to your nearest HR Office. 6

7 Complaints and Disputes Members who are dissatisfied with the way in which their retirement fund benefits are managed are able to lodge a formal complaint to the Fund by writing to the Principal Officer. The Principal Officer may address the complaint immediately or may need to institute an investigation to ascertain the causes that led to the complaint. Where necessary the Principal Officer will refer the complaint to the Board of Trustees for consideration. If the Fund s response does not satisfy the member, or the Fund fails to address the complaint, the member has the right to refer the case to the Pension Funds Adjudicator. There is no charge for lodging a complaint with the Adjudicator s Office. The Pension Funds Adjudicator s contact details are reflected below: Postal: P O Box , Menlyn, address: enquiries@pfa.org.za Tel: / Fax: Financial Advice For the majority of people their retirement fund money is their largest, and sometimes their only, form of savings. Being a member of the retirement fund does not necessarily guarantee sufficient income during retirement. To achieve this, members need to start planning as early as possible during their working lives. There are many financial planners that will be able to provide sound retirement planning advice. It is important that the advisor takes into account individual requirements and circumstances, and that all facts are disclosed regarding the options available to a member exiting a retirement fund. Please ensure that any financial advisor that you use is accredited in terms of the Financial Advisory and Intermediary Services Act (FAIS), and that the advisor concerned provides written confirmation to this effect. To find an accredited financial advisor go to 7

8 QUESTIONS, COMMENTS AND SUGGESTIONS Please note that the Fund s Rules, Annual Financial Statements and the Actuarial Valuation are available for inspection at the registered address of the Fund. Should you have any questions, comments or suggestions about the information contained in this report, or with regard to your benefits, investments or general Fund activities you may contact: Telephone: Web address: Registered Fund Name: The Road Freight and Logistics Industry Provident Fund FSB Registration No: 12/8/37811 Registered Address: 3rd Floor, 15 Junction Avenue 11 Park Lane Parktown 2193 Salt Employee Benefits(Pty)Ltd - an authorised Financial Services Provider (FSP No ) 8