SEIFSA ANNUAL REVIEW 2021
METAL INDUSTRIES BENEFITS FUND ADMINISTRATORS’ REPORT
BACKGROUND
Retirement Funds in South Africa are governed by the Pension Funds Act No. 24 of 1956 (as amended), that came into operation on 1 January 1958. Since then, all retirement Funds (Pension, Provident and Retirement Annuity Funds) must be registered in terms of this Act. The main aims of the Pension Funds Act are to: • Register and regulate all entities operating as Retirement Funds; • Protect the rights of members; • Maintain minimum solvency standards to ensure that employers do not renege on their commitments to employees and leave them destitute in their old age; • Ensure that the Funds, as separate legal entities, have balanced ownership and accountability of the participating parties; and • • Dissolve Funds that are financially unsound or wilfully violate the Act.
In terms of the Pension Funds Act, members have the right to elect 50% of the Board Members. A Trustee acts in a fiduciary capacity and should be familiar with and understand the laws governing retirement funds. The Board of Trustees has appointed as its agent the Metal Industries Benefit Fund Administrators (MIBFA) to administer the funds of Employers and Employees in the metals and engineering industries. The Board is nevertheless accountable and ultimately responsible to the Registrar and the Financial Sector Conduct. MIBFA provides administration services for the following Funds: • • • •
Engineering Industries Pension Fund; Metal Industries Provident Fund; Metal and Engineering Industries Permanent Disability Scheme; and Metal and Engineering Industries Bargaining Sick Pay Fund.
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