Investments in retirement funds are often not front of mind for many consumers who are members of such funds. However, a cursory glance at the complaints’ statistics from the Office of the Pension Funds Adjudicator (“OPFA”) suggests that members should be paying more attention to what happens with their retirement savings.
From the contributions that are deducted from salaries (in case of those in occupational funds), to the monthly premiums deducted from bank accounts (for those who are members of retirement annuities), a considerable amount of money is paid over by members to retirement funds. It follows that it is important for members to take a keen interest in the management of their contributions so that they can realise proper outcomes.
Given South Africa’s low level of financial literacy, members of retirement funds must take every opportunity to learn about their investments, the benefits you may get whilst still in employment, the benefits payable when a member terminates employment, the benefits payable should a member pass away or become disabled whilst in service and the benefits at retirement.
There may be several options at different stages. Therefore, it is important that members understand their benefits.
It is the right of each and every member to be provided with adequate, timeous information to make informed decisions or just to stay informed of their benefit.
Contact the Principal Officer of your fund, your Human Resources Benefits Administrator or your fund consultant for whatever information you require as a member. Above all, make sure that you receive your informative benefit statement every year. Also update your contact details with the fund and your beneficiary nomination forms.
Stay informed and should you have any concerns, contact the OPFA to resolve your query. The service is free for all retirement fund members. You may contact the OPFA at the following
address: 4th Floor, Riverwalk Office Park, Block A 41 Matroosberg Road, Ashlea Gardens, Pretoria or email us on enquiries@pfa.org.za or visit our website on www.pfa.org.za
