| RETIREMENT FUND MEMBERSHIP MANUAL
FUND OVERVIEW AND GOVERNANCE OF THE CPUT RETIREMENT FUND A. FUND OVERVIEW The Cape Peninsula University of Technology Retirement Fund (hereafter called the CPUT Retirement Fund) was established on 1 December 1994. All permanent employees of the CPUT, including those employed on a contract basis for an unbroken period of two years or longer, are required to belong to the Fund as a condition of employment. In this section we highlight: • The key features of the Fund; and • The mission and values of the Fund
Key features The Fund is a Defined Contribution Arrangement. The key feature of a Defined Contribution Fund is that the benefit you receive on retirement depends entirely on: • The contributions that are set aside monthly as your retirement savings; and • The investment return (positive or negative) you earn on this money. In addition to providing retirement benefits, the Fund also provides resignation, retrenchment and death benefits.
Mission and values The mission of the Fund is to provide reasonable and competitive benefits as defined in the Fund’s rules. In addition, the Fund also observes the following key values: • Honesty – the Fund will always act towards its members in a transparent and honest manner • E mpowerment – tthe Fund has a focus on providing members with education that aims to empower members to understand and control their retirement savings • Innovation – the Fund aims to be at the forefront of developments in the retirement fund industry
B. GOVERNANCE In the same way as a company needs directors to run it, a Fund needs Trustees to run it. The Trustees’ duties are similar to those of a company board of directors – they are put in a position of trust. The duties centre around protecting the interests of the Fund’s members. The Board of Trustees governs the Fund. In this section you can find out more about: • Who the Trustees are, what their responsibility is and how they are elected. • Details of the Committees of the Board. • Who the statutory officer bearers of the Fund are.
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THE TRUSTEES
Finance, Investment and Audit Committee
How the Trustees are elected and appointed The Fund has 10 Trustees, 5 of whom are elected by the members/employees and 5 of whom are appointed by the Employer. The member elected Trustees serve for a period of 3 years. The current member Trustees will hold office until 2027 at which time an election will be held.
The duties of the Trustees The Trustees have a fiduciary duty to act in the best interests of the Fund and in a manner that is consistent with the Fund’s Rules. More importantly, this means that in making decisions the Trustees must consider the best interests of the Fund and its membership and not the interests of any particular stakeholder group. The Board meets four times each year to consider matters.
The Finance, Investment and Audit Committee meet four times a year to consider matters relating to the investment of assets, review of investment and financial information, risk management, actuarial and financial reporting and contracts with asset managers. It also serves as the Audit Committee in reviewing the annual statements of the Fund.
Benefits and Administration Committee The Benefits a nd A dministration C ommittee a lso m eet f our times a year to consider matters relating mainly to the benefits and administration of the Fund, compliance with the rules and legislation, member communication and contracts with suppliers other than asset managers. The Committee also considers the apportionment of death benefit l ump s um p ayments i n t erms o f s ection 3 7C o f t he Pension Funds Act and makes appropriate recommendations to the board.
OFFICE BEARERS The Office Bearers are statutory appointments in terms of the Pension Funds Act.
Profile of current Trustees Your Board of Trustees are: MEMBER-ELECTED TRUSTEES
COUNCIL APPOINTED TRUSTEES
Mr A Neethling (Chairperson)
Ms N Qomoyi
Prof. M Aziz
Prof. C Nhlapo
Mr P Chibvuri
Ms P Sotshononda
Mr C Bezuidenhout
Mr J Corns
Mr M Tshaka
Mr M Daca
The current office bearers of the Fund are: Principal Officer: Ms R Davids Monitoring Person and Information Officer: Ms R Davids Actuary: Mr V Kroon of Willis Towers Watson Auditors: Price Waterhouse Coopers
COMMITTEES A committee is a working forum tasked with considering strategic matters and to assist the Board in the implementation of strategy. It is advisory in nature and answerable only to the Board of Trustees The Fund currently has 2 standing committees, namely the: • Finance, Investment and Audit Committee • Benefits and Administration Committee The committees only have the authority to make recommendations to the full Board of Trustees. In certain circumstances the Board may delegate decision-making authority to the relevant Committee.
FUND OVERVIEW AND GOVERNANCE OF THE CPUT RETIREMENT FUND | 4