RFLIPF Trustee Report 2014

Transcription

RFLIPF Trustee Report 2014
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 2014. 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 2014.
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 40 000 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 2014.
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.
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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 2015.
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
Independent Professional Trustees
Tabudi Ramakgolo
Solly Mothibedi
Zack Mankge
R Boloyi
Johnson Gumede
Vacant
M Mabaso (Chairman)
Jolly Mokorosi
Mandla Nkosi
Mabatho Seelso
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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
o
Back Office
: Sanlam Employee Benefits
: 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
Argon Asset Management
JM Busha Asset Management
Prowess Investment Managers
Vunani Fund Managers
Afena Capital
Old Mutual Investment Group
Mazi Capital
Momentum Wealth Limited
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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 2013
10% 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.
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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
R20 000.00
Children
14-21 years
6-13 years
1-5
years
0-11 months
Stillborn
R15 000.00
R10 000.00
R 5 000.00
R 2 500.00
R 2 000.00
***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;
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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 2013. 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 www.rflipfund.co.za. Completed forms must be returned to your nearest HR Office.
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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 651826, Menlyn, 0063
E-mail address:
[email protected]
Tel:
012 346 1738/ 012 748 4000
Fax:
086 693 7472
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 www.fpi.co.za.
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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:
086 173 54 73
www.rflipfund.co.za
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. 18929)
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