BULLY SINGH

•Chairman, Iscor Retirement Fund &Iscor Unclaimed Benefits Preservation Pension Fund

•24 years’ knowledge & experience as Trustee

BULLY SINGH

•Chairman, Iscor Retirement Fund &Iscor Unclaimed Benefits Preservation Pension Fund

•24 years’ knowledge & experience as Trustee

A Personal Experience

Moving deferred pensioners from the retirement Moving deferred pensioners from the retirement

fund to an unclaimed benefits preservation

fund for the benefit of existing pensioners

Administration expenses were going up

Why?

– 40 000 Deferred Pensioners on the Iscor Retirement

Fund in January 2010

– Proving to be a massive burden on existing

pensioners in the same fund

65% of the administration costs were for the

Deferred Pensioners

– These 40 000 Deferred Pensioners were on the

books but were “not doing anything”

– State of affairs could not be allowed to continue and

had to be remedied

Steps that were taken:

– Approached the Actuary

– Asked for a breakdown of the age groups

– Asked for the detailed benefit entitlement of each

Deferred Pensioner

– A startling fact: the first 15 000 Deferred Pensioners

had benefits of less than R500 each

Steps that were taken:

– Examined all who were 65 and older with help of

the Actuarythe Actuary

– Found that they were due for a pension

– Having to get hold of 40 000 people

– Made use of 4 or 5 tracing agents

From Challenge to Windfall Opportunity

– The retirement fund was running its surplus – The retirement fund was running its surplus

apportionment exercise at the same time

– Able to use the same results of the tracing agents

for the apportionment exercise

– Cost-effective use of tracing agents – using the same

results for two fund projects

– The FSB was involved from the start

– The FSB gave advice as well as assurance that the

Iscor Retirement Fund was on the right path

– Actuary, Investment Consultant and Administrator

also involved from the startalso involved from the start

Success flowing from Stakeholder Involvement

– Rules for Preservation Fund drawn up and

registered within one month

– Approved by SARS within 2 days of FSB registration

Thank youThank you