Gaining new insights
The retirement funds Industry has undergone numerous changes over the past number of years and further changes are expected in the near future.
The industry continues to be impacted by regulatory changes and improvements including accounting standards developments, actuarial guidelines, and enhanced risk management and compliance requirements.
We have a dedicated retirement funds industry group with extensive experience in providing services to both retirement funds and administrators. We have a considerable skills base in South Africa and have an in depth knowledge of the functions and operations within the Industry.
- Identifying fund risks, assessing fund risk appetite and risk mitigation / risk transfer strategies;
- Benefit design and implementation of cost-effective packages that are seen as valuable by employees;
- Checking of complex benefit calculations , such as when part of a defined benefit is commuted for cash;
- Independent assessment of assumptions and methodology in fund actuarial valuations;
- Financial reporting on IAS 19 and IFRS 2 valuations;
- Merger /acquisition support on risks linked to benefit arrangements, BEE trusts and share option plans;
- Independent valuation of structured products or derivative overlay structures to hedge market risk.
Assurance and accounting services
- Statutory audits;
- Accounting, regulatory and governance advice;
- Detailed checking of the roll up of individual member records;
- Checking on completeness and accuracy of migration of member data to a new administration platform;
- Reports to the Registrar of Pension Funds in terms of Section 15 of the Pension Funds Act.; and
- Valuations of unlisted investments, such as those held to meet socially responsible investment objectives.
- Forensic investigations ,including data mining techniques applied to detect invalid benefit payments;
- Information systems and process assurance;
- Trustee and administrator training on retirement fund accounting and governance; and
- Strategy development including IT strategy.
While retirement funds do not incur income tax or dividends tax they are affected by input VAT and there may be scope to ensure that the impact of this cost is not in excess of what is required.