Retirement Fund Fundamentals

Module 1: Foundational Aspects

This module will introduce you to some basic information about retirement funds including their purpose, function, and the features of the different types of retirement funds. It will also deal with the establishment of a retirement fund (its registration and approval), taxation of benefits, how funds operate and their legal status.

Module 2: Legislative Framework

This module will cover the differences between Customary Law, Common Law, and Statutory Law. It will provide you with an overview of the impact of the Constitution on our laws and a summary of the important sections of the Pension Funds Act. It also deals with the impact on retirement funds of various other pieces of legislation, including the Income Tax Act, the Financial Institutions (Protection of Funds) Act, Labour Legislation, the Short & Long term Insurance Acts, the Promotion of Access to Information Act, the Maintenance Act, the Divorce Amendment Act, the National Credit Act, the Financial Intelligence Centre Act, the Financial Advisory and Intermediary Services Act, the Civil Unions Act and the Children’s Act.

Module 3: Trustees and Fund Officers - Roles and Responsibilities

This module will explain what a trustee is, the establishment of a board of trustees, and who cannot be a trustee. It describes the appointment and roles of the chairman and principal officer and provides an overview of the legislation that applies to retirement funds. A significant portion of the module deals with the powers and duties of retirement fund trustees as well as issues regarding governance and protecting the fund from the potential fraud or negligence of any of its officers.

Module 4: Documents of a fund

This module covers the documents that boards of trustees need to be familiar with, so that they can efficiently run their fund. It stresses the importance of rules, gives an insight into what a typical set of rules might contain, and how such rules should be structured. The learner will be given an insight into the workings of the insurance policies of the fund and the relationship of the fund with its insurers, through these documents.

Module 5: Member Communication

This module covers the communication required to be provided to members of a retirement fund. It discusses minimum communication standards, as well as the latest requirements for funds to establish communication strategies. Furthermore, it sets out how special events (such as transfers and benefit changes) should be communicated.

Module 6: Trustee Meetings

This module covers all the documentation you may receive for a trustee meeting in meeting necessary requirements, as well as the various parties who attend board meetings and what their specific roles are.