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FAQ

Introduction

The purpose of the frequently asked questions is to provide you with more information about the new organisation. The questions cover different aspects ranging from the rationale behind its establishment, founding members, eligibility requirements and much more. We are looking forward to engaging further with you about this initiative within the retirement industry.

What is the new organisation?

The new organisation aims to promote the interests of pension funds and their fiduciaries as defined by the Pension Funds Act.

The key goals are to:

  • Be the single and relevant voice for pension funds and their fiduciaries;
  • support responsible investment (active ownership);
  • build and maintain strategic relationships with stakeholders such as policy makers, the regulator and other industry bodies;
  • influence policy direction, legislation and industry practices;
  • be the primary organisation that government consults with;
  • promote good fund governance through best in class in education, training, continuous professional development; and
  • Encourage a savings culture for retirement.

Why is there a need for a new organisation?

There is currently no single voice which represents the needs of all funds and their fiduciaries. Existing industry bodies represent only one group of fiduciaries, or they include stakeholders such as service providers who are not directly involved in fund governance and have a commercial interest in pension funds.

Theorganisationseesitsrolesasaninfluentialandeffectivelobbyingbodywiththelegislators and regulators, a facilitator of stakeholder engagement and a leading standard setter which makes its brand compelling.

Who will be eligible for membership?

Pension fund members and their fiduciaries will be eligible for membership. Fiduciaries are persons who have a fiduciary and statutory duty towards the fund and its members as well as those who have executive responsibilities.

How will the new organisation be formed?

The participating organisations have formed a Working Committee to develop the road map.

Two key guiding documents will contain the future direction i.e. the Founding Document and

Memorandum of Incorporation.

The Founding Document sets out the principles of its establishment, the broad goals, membership, institutional arrangements, funding requirements and a high level implementation plan. Given that the new organisation will be registered as a non-profit company (NPC) a Memorandum of Incorporation will give direction on member rights, meeting requirements, director eligibility and appointments, etc.

 Which organisations will form part of the new organisation?

The need for the establishment of a new organisation is not new. It was a point of discussion between all stakeholders as far back as 2006/2007. These earlier attempts to do so were shelved due to funding and other constraints.

In 2012 COSATU, under the direction of its Employee Benefit Forum, revived the initiative via consultations with National Treasury, the Financial Services Board and other industry stakeholders. The following labour federations and industry bodies have joined hands with COSATU to start the process i.e. FEDUSA, NACTU and The Principal Officers Association of South Africa (POA).

Other industry bodies and labour federations have also been invited to become part of the new organisation. It is the intention to represent all relevant stakeholders who are part of a pension fund (employer, employee and independent trustees, fund representatives, organised labour, industry bodies, etc.)

What legal form will the new organisation take?

The new organisation will take the legal form of a non-profit company in terms of the Companies Act. The organisation will also be registered as a professional body in line with the criteria set out by South African Qualifications Authority (SAQA). The new organisation will be managed on a day-to-day basis by a full-time Secretariat.

Who will govern the new organisation?

The new organisation will benefit from the effective leadership of the interim board of directors, to be determined in terms of the Founding Document and Memorandum of Incorporation.

The interim board will guide the new organisation in its infancy, after which a permanent board will be established. Will any of the founding organisations lose their identity in the new organisation? The founding organisations in consultation with their members will create a new brand identity for the new organisation that is inclusive and embodies the membership profile. The new organisation will retain the collective strengths and intellectual capital of various participating organisations.

What is the role of organised labour in the new organisation?

Organised labour will participate as a stakeholder which has funds, trustees and principal executive officers as part of its membership.

What is the role of the POA in the new organisation?

The POA will participate as a stakeholder which has principal executive officers, trustees and other pension fund functionaries as part of its membership. The POA is presently rendering a secretarial service to the Working Committee.

How will the new organisation be funded?

The long-term and strategic aim of the new organisation is to be financially independent and self-sufficient. Discussions are underway to explore funding via government levies. In addition, the new organisation will be funded partly by membership fees, conferences and other special projects.

What is the role of service providers in the new organisation?

There is recognition that service providers are an important strategic stakeholder and partner who have a wealth of knowledge and expertise to offer pension funds. The new organisation will continue to work closely with service providers now and in the future.

However, there is awareness that there are areas of conflicts of interest. Fiduciaries have to be vigilant and pro-active to address such issues in order to ensure and maintain the independence of the organisation.

What is the name of the new organisation?

The following proposed name, Batseta Council of Retirement Funds for South Africa has been reserved at the Companies and Intellectual Property Commission (CIPC). The pro- posed name of the organisation will be formally announced once the consultations with the funds and fiduciaries have been completed.

When can funds and fiduciaries join the new organisation?

Contact Details

Spokesperson: Isaac Ramputa

Telephone: 082 652 8121 E-mail: info@batseta.org.za

Secretariat: Anne-Marie D’Alton

Telephone: 083 627 8268 E-mail: info@batseta.org.za