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How enhanced Audit Committee oversight can yield
improvements on concerning trends from the
Adjudicator’s Office
Complaint trends
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New Complaints
8000
7000
7010
6000
6220
5000
5368
5405
5161
4000
3000
2000
1000
0
2010/2011
2011/2012
2012/2013
2013/2014
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5th Annual Audit Committee Conference
2014/2015
Geographical area of residence
0%
10%
12%
Eastern Cape
3%
4%
5%
Free State
Gauteng
KwaZulu-Natal
9%
Limpopo
Mpumalanga
6%
North West
Northern Cape
8%
Western Cape
43%
Foreign Country
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5th Annual Audit Committee Conference
Nature of benefits on Complaints Closed
Pension Interest
Other
Section 14 transfer
Ill health / Disability benefit
Retirement Annuity
Retirement fund
Benefit Statements
Ongoing fund issues
Death benefit - lump sum
Withdrawal benefit
0
10
20
30
40
50
Percentage
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5th Annual Audit Committee Conference
60
70
Common Pitfalls
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 Conflate governance issues as administration leading to improper
delegation
 Lack of proper oversight and feedback
 Infrequent liaison with Regulatory authorities
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5th Annual Audit Committee Conference
Withdrawal benefits
 Delay in payment or non-payment of benefit
 Non-compliance with section 13A
 Contribution unpaid or paid late – often only after complaint has been lodged
 Unallocated contributions
 Raising late payment interest in terms of Regulation 33
 Proper disclosure of arrear contributions
Death benefits
 Beneficiaries properly identified
 Extent of dependency (supporting documentation)
 Mode of payment (proper investigation)
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5th Annual Audit Committee Conference
 Section 19(4) of the Act – prudential investments
 Funds invested in Sharemax and like schemes
 Section 18 schemes not coming to fruition
 Investment switches
 Was it in accordance with the instruction from member (documentation)
 Was it implemented on time
 Issuing of housing loans
 Were the guarantees issued for the right purpose
 Abuse – short term loans with exhorbitant fees and credit life insurance?
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5th Annual Audit Committee Conference
 Is the process in terms of the rules and the Act
 Did payment / receipt occur within 60 days of approval
 Documentation – Is there approval for each transfer
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5th Annual Audit Committee Conference
 Benefit statements
 Defined benefits – simpler narration of benefits and access rules
 Defined contribution – Opening & closing balance
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5th Annual Audit Committee Conference
Questions / Discussion
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