BULLY SINGH â¢Chairman, Iscor Retirement Fund &Iscor Unclaimed ...
BULLY SINGH â¢Chairman, Iscor Retirement Fund &Iscor Unclaimed ...
BULLY SINGH â¢Chairman, Iscor Retirement Fund &Iscor Unclaimed ...
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<strong>BULLY</strong> <strong>SINGH</strong><br />
•Chairman, <strong>Iscor</strong> <strong>Retirement</strong> <strong>Fund</strong> &<strong>Iscor</strong><br />
<strong>Unclaimed</strong> Benefits Preservation Pension <strong>Fund</strong><br />
•24 years’ knowledge & experience as Trustee
A Personal Experience<br />
Moving deferred pensioners from the retirement<br />
Moving deferred pensioners from the retirement<br />
fund to an unclaimed benefits preservation<br />
fund for the benefit of existing pensioners
Administration expenses were going up<br />
Why?<br />
– 40 000 Deferred Pensioners on the <strong>Iscor</strong> <strong>Retirement</strong><br />
<strong>Fund</strong> in January 2010<br />
– Proving to be a massive burden on existing<br />
pensioners in the same fund
65% of the administration costs were for the<br />
Deferred Pensioners<br />
– These 40 000 Deferred Pensioners were on the<br />
books but were “not doing anything”<br />
– State of affairs could not be allowed to continue and<br />
had to be remedied
Steps that were taken:<br />
– Approached the Actuary<br />
– Asked for a breakdown of the age groups<br />
– Asked for the detailed benefit entitlement of each<br />
Deferred Pensioner<br />
– A startling fact: the first 15 000 Deferred Pensioners<br />
had benefits of less than R500 each
Steps that were taken:<br />
– Examined all who were 65 and older with help of<br />
the Actuary<br />
– Found that they were due for a pension
– Having to get hold of 40 000 people<br />
– Made use of 4 or 5 tracing agents<br />
From Challenge to Windfall Opportunity<br />
– The retirement fund was running its surplus<br />
apportionment exercise at the same time<br />
– Able to use the same results of the tracing agents<br />
for the apportionment exercise<br />
– Cost-effective use of tracing agents – using the same<br />
results for two fund projects
– The FSB was involved from the start<br />
– The FSB gave advice as well as assurance that the<br />
<strong>Iscor</strong> <strong>Retirement</strong> <strong>Fund</strong> was on the right path<br />
– Actuary, Investment Consultant and Administrator<br />
also involved from the start<br />
Success flowing from Stakeholder Involvement<br />
– Rules for Preservation <strong>Fund</strong> drawn up and<br />
registered within one month<br />
– Approved by SARS within 2 days of FSB registration
Thank you