Pension fund members have much to gain from properly skilled trustees
ASISA Foundation
The ASISA Foundation facilitates consumer financial literacy and education programmes for SA's most vulnerable groups.
Frequently, the trustees of a pension funds lack financial qualifications or a background in financial management, particularly those appointed by the company’s employees. Due to their insufficient knowledge, these #trustees may struggle to carry out their fiduciary responsibilities in a manner that maximises the benefits for the members of the #pensionfund. This may include making sound investment decisions, assisting the members they represent in making appropriate #retirementfund choices, and resolving issues that arise when benefits are paid out.
The ASISA Foundation has established the Retirement Fund Trustee Education (RFTE) programme to address this financial education need. The programme is tailored towards South African retirement fund trustees who have been appointed by either the employer or employee, as well as principal officers. Its objective is to equip participants with the essential skills required for fund management to enable them to fulfil their fiduciary and governance responsibilities towards their retirement funds efficiently, and to communicate effectively with the fund’s stakeholders.
Opening doors for trustees while supporting fund members
Adv Makubalo Ndaba first attended a few RFTE workshops in 2017. He was appointed as a trustee to the Government Employees Pension Fund (GEPF) by the Police and Prisons Civil Rights Union (POPCRU). At that time, he was a senior pension funds adjudicator with limited trustee experience. “The workshops provided me with an up-to-date understanding of the pension system value chain and extended my knowledge base, especially in active ownership and the role of the board of trustees in stewardship,” he says.
These workshops opened new doors for Makubalo and strengthened GEPF members’ options for proper interaction with the fund trustees. “With my new-found knowledge, I was able to assist the fund in developing a complaint handling process for members, which culminated in the ombudsman,” he says. He is currently a specialist trustee appointed by National Treasury to the Government Employees Pension Ombud Office.
He also acts as an expert facilitator on funder workshops where the Foundation is involved. He is an excellent example of how the RFTE programme has been able to “train the trainer” and make use of expert resources who have emerged from within organised labour structures.
Makubalo believes the RFTE programme has a significant impact on the financial literacy of trustees. “A lot has been said about the low level of savings in South Africa. While creating new laws might help, providing more specific training to those who lead workers would be even more effective,” he says.?
领英推荐
The greater the knowledge of trustees, the greater the knowledge of fund members?
Attending a two-day workshop last year gave Birven Sauls, an employee-appointed Transport & Omnibus Workers Union trustee, a newfound understanding of his role in managing retirement funds. He says that by gaining more knowledge and confidence, he can now help workers understand what will happen to their retirement benefits and how their dependants will be affected after they pass away.
“People aren’t open enough with their families, so when they die, their loved ones don’t know which fund they belong to or how to make a claim. This is because the member didn’t know or didn’t share the information with their family,” he says.
Recently, Birven encountered a case where a member passed away, and he had illegitimate children, but his wife didn’t want to reveal their whereabouts. He was able to advise her that if she withheld information, the pay-out would take much longer, and she had to respect her husband’s wishes. “Although she didn’t agree, I could advise her confidently and according to the law. The rules governing retirement funds are clear, and as trustees, we must act in the best interests of the surviving family.”
Birven believes that the more trustees know about retirement funds, the more informed members will become. “It is very important for this knowledge to reach the members as well, even if they don’t have the opportunity to attend workshops. Sharing this information one-on-one with my co-workers, can prevent heartache and disappointment down the line.”
With a better understanding of retirement fund management, Bervin feels much more confident when workers or their families approach him with retirement fund issues. “I now know what the law says and can advise people much better,” he says.