AGENDA FOR THE MEETING OF THE MANAGEMENT COMMITTEE OF CORPORATE SELECTION UMBRELLA RETIRMENT FUND NO 2 THE SCREWMAN (PRETORIA) CC
TO BE HELD AT 10H00 ON 8 MAY 2018 AT THE OFFICES OF THE SCREWMAN (PRETORIA) CC
THE SCREWMAN (PRETORIA) CC
1.
8 MAY 2018
OPEN MEETING 1.1
Open Meeting: Present, Apologies, by Invitation Action:
1.2
An attendance register is to be circulated and signed by all parties’ present. Any apologies are to be noted.
Management Committee (Manco) Constitution of Manco Manco meetings
The Manco shall consist of at least 3 persons The Manco shall meet from time to time but at least once in a 12-month period. 50% of the Manco shall form a quorum The Chairperson shall be elected by the Manco (from amongst their number)
Quorum Election of Chairperson
1.3
Confirmation of Manco and Quorum The schedule below reflects the current Manco Representatives:
Surname
First Name
Lurie Ramapuputla Hirschman
Greg Joseph Estelle
Action:
1.4
Capacity (Member Elected/ Employer Appointed) Chairperson (Elected 22/11/2016) Member Elected Employer- Appointed
To confirm that the Management Committee is correctly constituted and that a quorum is present.
Disclosure of conflicts of interest, potential conflicts of interest, material gifts and favours Any Manco Representatives needing to declare conflicts or gifts received will make a declaration at the meeting and record such gifts in the attendance register. The Manco keeps a register of gifts received. The register promotes transparency within the Fund. The service providers will also be asked to declare any conflicts or potential conflicts of interest. Action:
2.
Manco Representatives and service providers are to declare conflicts of interest, potential conflicts of interest and gifts received.
PRESENTATIONS Sasfin is to provide investment feedback as per item no. 6 of this agenda.
3.
CONFIRMATION OF THE AGENDA The following items are to be added to the agenda: 3.1 3.2 2
THE SCREWMAN (PRETORIA) CC
4.
8 MAY 2018
MINUTES OF THE PREVIOUS MEETING Action: The minutes of the previous meeting are included for approval and signature (Annexure A).
5.
MATTERS ARISING FROM THE MINUTES OF THE PREVIOUS MEETING 5.1
(3.2) Section 14 Transfer from Momentum to Liberty Finalized:
The section 14 transfer form Momentum to Liberty was finalized and member benefit statements were delivered to The Screw man offices and this matter is finalized.
An amount of R 34, 337.46 is outstanding for S Senamela who had died on 14 February 2010. Resolution: Name Senamela BP Motshegwa MM Motshegwa LT
Date of Birth 03/05/1992 01/10/2002 25/08/2005
Relationship Son Son Daughter
% 12 40 48
Payment to Senamela BP Beneficiary Fund Beneficiary Fund
It was previously noted that Prism Employee Benefits would attempt to get hold of Mr BP Senamela for confirmation of his banking details. Prism received the banking details from Mr BP Senamela and were sent to Momentum. To Note: 5.2
Awaiting confirmation of payment from Momentum for payment made to BP Senamela.
(9) Legal It was previously noted that Prism had not received confirmation that the amendment to rename the membership categories had been finalized.
rule
To Note: Liberty confirmed that the rule amendment to rename the membership categories has been finalized. 5.3
(10) Communication Newsletter:
It was previously noted that a draft newsletter would be sent for distribution to members once the Section 14 had been finalized.
Member benefit statements: It was previously noted that benefit statements would be sent once the Section 14 had been finalized. To Note : This matter is discussed under item 5.1 of this agenda. Net replace ratio:
It was previously noted that Sasfin would perform an asset liability matching and provide members with their net replacement ratios upon finalization of the Section 14, The Net Replacement Statements were delievered with the member benefit statements and this matter is finalized. 3
THE SCREWMAN (PRETORIA) CC
5.4
(14.2)
8 MAY 2018
Financial Advisory and Intermediary Services (FAIS) Disclosure It was previously noted that Prism would forward a Ms Hirschman the FAIS disclosure document and the Prism Employee Benefits Service Level Agreements.
To Note: The FAIS disclosure and the Prism Service Level Agreements had been forwarded to Ms Hirschman and this matter has been finalized. 5.5
(9) Communication The Section 14 has been finalized and communication going forward can be distributed to the members.
5.6
(12.1) Service Provider Evaluations Action:
5.7
(13) Disclosure To Note:
6.
To complete the KPI Scorecard (Annexure B).
The Manco have provided Prism Employee Benefits with Copies of their Identity Documents.
INVESTMENTS 6.1
Investment Report and Performance Review Sasfin is to present the Investment Report for the period ending 31 March 2018. (Annexure C).
7.
ADMINISTRATION 7.1
Administration report The administration report is included for the Manco’s perusal (Annexure D). Action:
7.2
The Manco is to discuss the report.
Section 13A – Receipt of contributions and schedules Section 13A (1)– (3) of the Act read with regulation 33 and PF Circular 110 deals with the payment of contributions, provision of schedules and actions to be taken should there be late payments (or non-payments) or submissions of schedules. The employer is required to pay the monthly contributions to the Fund (within 7 days of the end of the month for which these are due); and to provide the Fund with a membership schedule confirming how the contribution was made up (within 15 days of the end of the month for which the contribution is due). Details of contributions paid and outstanding are included in the Administration Report included under item no. 7.1 of this agenda. Responsible Person: Estelle Hirschman To Note:
To note that contributions were received in terms of the requirements of the Act. 4
THE SCREWMAN (PRETORIA) CC
8.
8 MAY 2018
INSURANCE 8.1
Level of cover The insured benefits are renewed as at 1 December every year. The Fund/employer has the following cover in place with TSA/Sanlam: 17% Waiver
Description Group Life: (Multiple of Salary) Continuation Option to age: Continuation during disability: Increased cover during disability: Normal Retirement Age: Disability Income Benefit:
8.5% Waiver
Disability Claimant
Escalation: (Lesser of CPI &) Employer Waiver: Conversion Option: Normal Retirement: Dread Disease: (Multiple of Salary) Type: Continuation during Disability: Increasing during Disability: Conversion Option: Normal Retirement:
3 3 3 65 65 65 Yes Yes Yes Yes Yes Yes 65 65 65 75% Flat 75% Flat 75% Flat 3 3 3 months months months 10% 10% 10% 17% 11% 8.5% Yes Yes Yes 65 65 65 1 1 1 Standard Standard Standard Yes Yes Yes Yes Yes Yes Yes Yes Yes 65 65 65
1 Standard Yes Yes Yes 65
Funeral Benefit: (Scale)
R20 000
R20 000
Waiting Period:
8.2
11% Waiver
R20 000
R20 000
3 65 Yes Yes 65
Rates Benefit Group Life Cover Disability Income Benefit Dread Disease Funeral Cover Total
1 Dec 2016 2.664% 1.793% 0.641% 0.307% 5.405%
1 Dec 2017 2.664% 1.793% 0.641% 0.307% 5.405%
These rates apply to Categories 1 - 3. There are currently no members in Category 4.
5
THE SCREWMAN (PRETORIA) CC
8.3
8 MAY 2018
Medical requirements The current free cover limits are in place: Group Risk Insurance Group life Dread Disease Disability Income Benefit
9.
1 Dec 2016 R 705 000 R 225 000 R 19 075 p.m.
1 Dec 2017 R 790 000 R 225 000 R 21 350 p.m.
LEGAL Section 4(1) and regulation 8 state that a Fund should be registered with the Registrar. The rules (and any amendments) need to be registered by the Registrar (FSB) and approved by SARS. The Corporate Selection Retirement Fund No. 2 is registered with the FSB is a participating employer in the fund. The Corporate Selection Retirement Fund No. 2 has a set of master rules and special rules are issued in respect of each participating employer. Special Rules: Corporate Selection Retirement Fund No 2: The Screw man (Pretoria) CC Provident Fund Reg No.
12/8/36438:6016
To Note: The Manco is to note. 10.
COMMUNICATION Details of communication to members are listed below: Item Newsletters
Frequency After each meeting Benefit Statements Annual Web Statements Ongoing Members Close to Ongoing Retirement To Note: 11.
Next Due
Comment The draft quarterly newsletter is included (Annexure E)
1 December 2018 Upon Request
The Manco are to note.
COMPLAINTS The Manco should note all complaints from members/beneficiaries of the Fund (or otherwise) including Pension Fund Adjudicator Complaints or otherwise. This would effectively consist of a summarised record of any complaints received by the Fund and the resolution thereof. It can offer insight into potential areas of concern. Action:
12.
Manco to note that no complaints were received during the quarter.
EDUCATIONAL UPDATE An update on the developments in the industry is included (Annexure F).
12.1 Year Plan and Compliance Update 6
THE SCREWMAN (PRETORIA) CC
8 MAY 2018
The Manco should schedule meetings, evaluations and monitoring requirements for the year in terms of a year-plan. The year-planner is an important governance tool i.e. to assist the Manco with their duties. Item Meetings Manco Meeting Evaluations & Reviews Service Provider Evaluations Renewals Risk benefits Communication Issue of benefit statements
Next due
Comment
27 August 2018 At every meeting 1 December 2018 1 December 2018
Action: To update the year-plan. 13.
DISCLOSURE 14.1
IDENTIFICATION OF CLIENTS The Financial Intelligence Centre Act (FICA) was put in place to combat money laundering. The Act imposes reporting and other duties on ‘accountable institutions’ (including longterms insurers). One of these duties is the duty to identify clients. An ‘accountable institution’ may not establish a business relationship or conclude any transactions with a client unless it has established the client’s identity e.g. a bank will require proof of identity and residence before they open a bank account. Whilst a retirement Fund is not listed as an ‘accountable institution’, it is considered good governance to adopt internal control mechanisms in the context of this act. It is therefore important to obtain copies of the identity documents and proof of residence for: -
The Manco – to be provided Company registration certificate – to be provided; HR/Payroll personnel i.e. those persons who will sign the administrative documents associated with the Fund i.e. claim forms and monthly returns. – On Record
T Note : Fica documents are on record. 14.
GENERAL
15.
NEXT MEETING The next meeting is scheduled for 27 August 2018 at the offices of the Screwman.
16.
CLOSE MEETING
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