Role and Mandate of the

Pension Funds Adjudicator

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AGENDA

Mandate

Role in terms of the National Development Plan (“NDP”)

PFA Strategic Plan

Challenges and Priorities

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Mandate

Pension Funds Adjudicator (“PFA”) established in terms of

Chapter VA of the Pension Funds Act, 24 of 1956 (“the Act”)

Legislative Mandate:

…to dispose of complaints lodged in terms of section 30A(3) of the Act in a procedurally fair, economical and expeditious manner (section 30D)

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Mandate

What constitutes a complaint

Administration of a fund

Investment of its fund

Interpretation and application of its rules

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Mandate

JURISDICTION

Funds outside PFA jurisdiction

Time barred matters

Long term Insurance business

Businesses under business rescue

Section 15B surplus apportionment scheme

Trust funds

Beneficiary funds

Bargaining council funds

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Mandate

Number of complaints received

2710

5405

6763

1446

0

1000

2000

3000

4000

5000

6000

7000

8000

Complaints as at 1April 2013

New Complaintslodged 2013/2014

Complaints resolved2013/2014

Complaints as at 31March 2014

Case Activity

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Mandate

Nature of complaints

3% 5%

9% 2%

58%

3%

2%

1%

2% 1%

14%

Nature of benefit on Complaints Closed

Retirement fund

Benefit Statements

Death benefit - lump sum

Ill health / Disability benefit

Withdrawal benefit

Ongoing fund issues

Section 14 transfer

Surplus benefit

Retirement Annuity

Pension Interest

Other

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Mandate

Wow complaints were resolved

2131

412

4127

630

1141

3651

115

985

0

500

1000

1500

2000

2500

3000

3500

4000

4500

Determinations Conciliation Settlements

2011/2012

2012/2013

2013/2014

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Role in terms of NDP

High level objectives of the NDP: Eliminate poverty

Reduce inequality

Relevant enabling milestones in terms of the NDP: Ensure that skilled, technical, professional and managerial posts better reflect the

country's racial, gender and disability makeup;

Entrench a social security system covering all working people, with social protection for

the poor and other groups in need, such as children and people with disabilities;

Realise a developmental, capable and ethical state that treats citizens with dignity; and

Play a leading role in continental development, economic integration and human rights.

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Role in terms of NDP continued

OPFA’s contribution to these milestones:

Skilled workforce which reflects racial, gender and disability make up of the

population

Adoption of a three year employment equity plan (August 2013 – July 2016)

Appointment of graduate trainees

One of the commitments in terms of the plan is to ensure that the PFA achieves a

diverse workforce broadly representative of our people

The PFA’s workforce is fairly representative of the racial, gender and disability make

up of the country

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Role in terms of NDP continued

Enhancement of social security and social protection

Life assurers, pension fund organisations and employers play an important role in

social security and social protection by offering retirement funding products as well

as risk benefits in the event of unforeseen life events

In the event of disputes between pension funds, employers and their members, it is

important that the disputes are resolved in a cost efficient, procedurally fair and

expeditious manner

PFA rulings have helped uphold the integrity of the retirement funding industry and

continue to provide invaluable guidance to members and the industry on their rights

duties and obligations

The PFA’s rulings have assisted in the enhancement of social security and social

protection and will continue to do so

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Role in terms of NDP continued

Developmental, capable and ethical state which treats citizens with dignity

Citizens’ right to dignity includes ensuring that they are able to provide for

themselves even at retirement, disablement or death of the breadwinner

The PFA has dealt with a lot of complaints where members and/or their

beneficiaries would have been left financially destitute had there been no cost

effective legal recourse

Legally sound rulings have been issued to uphold members’ right to dignity

PFA continues to be an important safeguard to ensuring citizens are treated with

dignity by pension funds and all role players in pension funds

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PFA Strategic Plan (Brief overview)

Strategic Outcome Oriented Goal 1

Goal Statement

Resolve complaints in accordance with

our mandate.

To resolve complaints in a procedurally

fair, economical and expeditious manner

by complying with the ACT within the

available budget and in line with set

targets.

Dispute resolution through settlements, conciliation and determinations

Referrals to other ombud offices

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PFA Strategic Plan (Brief overview)

Strategic Outcome Oriented Goal 2

Goal Statement

Operational Excellence

Strengthening the Office’s organisational

capacity to deliver on its mandate by

becoming an employer of choice and

acting in accordance with the relevant

regulatory framework by achieving

unqualified audit reports and achieving

90% of the goals set out in this Annual

Performance Plan.

People Management

Financial Management

ICT Services

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PFA Strategic Plan (Brief overview)

Strategic Outcome Oriented Goal 3

Goal Statement

Stakeholder Relationship Management

Identify, develop and maintain key

stakeholder relationships in the pension

funds industry, government, public and

governing bodies to enhance

performance, accountability, and public

confidence.

Proactive Stakeholder management

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Challenges

Delinquent funds and employers

Lack of consumer education – compounded by low levels of

literacy and even lower levels of financial literacy

Public awareness across the country

Non-existence of appeal mechanism

Lack of enforcement mechanism of determinations

Reliance on court processes – lengthy and costly

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Priorities

Resolve as many complaints as possible within reasonable

timeframes

Effective stakeholder engagement

Become an employer of choice

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Thank you