Retirement Funds

Retirement funds

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1. Who is a trustee

A trustee is someone who has been elected or appointed into the Board of Trustees of a Retirement Fund (also known as the Management Board)

2. How are the trustees elected or appointed?

Trustees must be elected/appointed in accordance with the Retirement Funds Act 2005. The Act provides that the Board of Trustees must consist of at least 4 persons, of whom at least 50% shall be elected by the members of the retirement Fund and the balance shall be appointed by the employer. The procedure for the election of the trustees should be contained in the rules of the Fund.

3. Who elects the trustees

The following people have a right to elect at least half of the members of the Board of Trustees.

All active members
Pensioners (who receive monthly pension from the Fund)
Deferred pensioners

The balance of the members should then be appointed by the employer

4. Structure of the Board of Trustees

The Board must be headed by a chairman who shall be elected by the trustees from amongst themselves.

5. What are the duties of the chairman

The chairman must:

Proactively lead the Board without bias.
Confirm agenda for the Board and review draft minutes.
Manage Board meetings.
Review and evaluate the performance of the entire Board, Board committees and the Principal Officer.
Meet regularly with the Principal Officer to monitor operations of the Fund.
Act as spokesperson for the Fund.
Proactively raise issues of concern with the employer on behalf of the board.

6. What are the duties of the Board of Trustees?

The responsibilities of the Board of Trustees are to:

Manage the Fund in accordance with the Rules and the applicable legislation.
Act in the best interest of the members of the Fund
Keep proper records of the operations of the Fund
Inform members of their benefits and rights
Ensure that contributions are timeously paid to the Fund
Ensure that the rules and operations of the Fund are not in violation of the Act
Ensure proper management and investment of the assets of the Fund
Distribute death benefits
Ensure that returns are prepared and submitted to the Registrar timeously
Ensure that audited financial statements are prepared and submitted to the Registrar
Appoint a valuator of the Fund
Appoint and auditor of the Fund
Appoint an investment manager of the Fund

7. Protecting the interest of the members

The board must ensure that the interests of members are protected at all times by:

Acting with care, diligence and good faith
Avoiding conflict of interest; and
Acting impartially

8. Some events where members' interests should be protected

The following are some events where members' interests should be protected

Termination

Transfers

Amalgamation

Splitting of investments

Amendments

Selection of service providers

9. Procedure in meetings

The Rules of the Fund must state:

The procedure at meetings
The voting rights of members of the Board
The Breaking of deadlocks
The powers of the Board

 
 

1. Who is a Principal Officer

A Principal Officer is someone appointed by the Board of Trustees of the Retirement Fund to be the executive officer of the Fund, responsible for administering the day to day affairs of the Fund. Every Retirement Fund must have a Principal Officer, who shall be a Swazi citizen resident in Swaziland. The name of the Principal Officer must be advised to the Registrar in writing within 30 days of appointment

2. What are the duties of the Principal Officer?

The Principal Officer's duties include:

Receiving and processing all communication made to the Fund
Ensuring that all decisions of the Board are implemented
Ensuring that the Fund complies with all the requirements of the applicable legislation
Liaising on behalf of the Board with service providers to the fund
Contributing at Board meetings
Doing any other administrative function in terms of the Rules of the Fund and applicable legislation.