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Benchtest 06.2017, will Namibia attract foreign investors, tax and payment to an estate and more...
Kai Friedrich's Administration Forum
Considering these key risks a service provider presents to a fund, it is quite evident that the risks referred to will not be addressed through rotation of service providers.
News from RFS
Our staff – the recipe for our success!
One of our ardent readers noticed that this article omitted our managing director designate from the list of long serving staff. Thank you for that Wessel!
Marthinuz Fabianus commenced service on 1 November 2001 and will celebrate his 16th anniversary at RFS this year! Apologies to Marthinuz for this oversight and thank you for 16 years of commitment and dedication to the cause of the company!
RFS sponsors beach volley ball tournament
Pictured above: Ladies teams in action at the RFS Winter Classic.
Pictured above: RFS hands over the sponsorship. From left to right: James Verrinder, Coach, Timeout Beach Volleyball Academy, Kyara Leuschner, Mirko Kriess and Günter Pfeifer, representing RFS.
Omnitel joins the Benchmark Retirement Fund
We are proud to announce that Omnitel Namibia has decided to join the Benchmark Retirement Fund as from 1 October and will transfer its business from the Orion Pension Fund.
We extend a hearty welcome to Omnitel and its staff and look forward to serving you beyond expectation in the years to come.
News from NAMFISA
Proposed amendment to regulation 28
NAMFISA laid on a meeting for 11 July to discuss proposed amendments to various regulations, but more importantly to the investment regulations under the Pension Funds Act (regulations 28 and 29), the Long-term Insurance Act, the Short-term Insurance Act and the Medical Schemes Act and to discuss feedback received from industry participants on practical difficulties experienced with the application of these regulations.
A very well attended congregation was first introduced to the objectives of government with regard to the financial sector in particular and the development of the economy in general, by Mrs Erica Shafudah from the Ministry of Finance. Various NAMFISA officials then dealt with different areas on which comments were received from industry participants and NAMIFISA’s responses to these.
As committed stakeholders of the industry we have always been making our contributions and providing our comments when invited to do so by NAMFISA. However more often than not the responses have been a lapidary ‘do not agree…’. The question that has crossed our minds regularly was whether NAMFISA was sincere about wishing to consult. That perception was also mirrored in the comments of some participants of the consultation meeting. And yes, there was quite lively debate on various issues, but such a forum is simply inappropriate as a consultation forum.
Sincere consultation requires a different approach and it may mean that the time frames NAMFISA sets itself may not always be achievable, but what is more important – a solution that meets the expectations of all or a solution that meets NAMFISA’s time frame?
The comments by industry participants and NAMFISA’s responses can be accessed here…
The following recommendations were accepted by NAMIFSA and should end up in the regulation: -
Top management changes at Alexander Forbes
It has been confirmed by informed sources that former MD Jan Coetzee has quit his job at Alexander Forbes Financial Services. He has not been replaced officially yet but rumour has it that Dietrich Schrywer is acting in his position.
(for stakeholders of the retirement funds industry)
FSB asked to act against errant fund administrator.
In this complaint to the SA Adjudicator, a former fund member authorised the administrator and the fund to deduct an amount due by the member to his former employer in respect of a performance bonus that the member had to refund to the employer when he resigned.
In her determination, the adjudicator said Section 37A of the Act provided that pension benefits can only be attached if the requirements set out therein have been met, namely; a member must have caused damage to the employer by reason of any theft, dishonesty, fraud or misconduct and in respect of which a member has admitted liability or where judgment has been obtained against the member. She concluded that the fund acted unlawfully in deducting the refund from the benefit and ordered the fund to pay the amount deducted to the former member together with interest.
Read the full article in FA News, here...
PFA dismisses complaint based on greed
In this case the trustees distributed the death benefit to the life partner, two biological children and the mother of the deceased. The life partner of the deceased was unhappy with the allocation to the other beneficiaries and wanted the full benefit to be allocated to her arguing that she was 57 and was approaching retirement.
Following are interesting outflows from this case that can serve as precedent for trustees considering such scenarios when allocating a death benefit.
Can you commute an annuity upon emigration
In this article the author refers to the definition of ‘annuity’ in the SA Income Tax Act. This restricts the amount that may be commuted at retirement. Other than this provision in the Income Tax Act, an annuity cannot be commuted upon emigration. The Namibian Income Tax Act contains very similar provisions, meaning that the conclusion is also relevant to Namibia.
Read the article by Lize de la Harpe, legal adviser at Glacier by Sanlam in Insurance Gateway here...
Fund ordered to review distribution of death benefit
In this case the complainant, who was the mother of a child of the deceased fund member, approached the adjudicator to consider the allocation of the death benefit as well as the payment of the benefit for the dependent child into a pre-determined beneficiary fund.
The deceased’s mother and his daughter were the only nominated beneficiaries in the event of his death. The deceased and his mother passed away in a motor vehicle accident on 7 April 2013.
On 1 August 2014 the trustees resolved to allocate 70% of the benefit to the deceased’s child and 15% each to two brothers of the deceased. The basis for allocating a portion to the two brothers was an affidavit submitted by them to the fund in which they claimed to have been unemployed and partially dependent on the deceased at the time of his death. The benefits were paid on 6 August 2014.
The complainant raised her objection to the allocation to the two brothers in January 2015 as both were employed, one being an admitted attorney, the other a well-known businessman. This information was provided to the fund by the complainant after the fund informed her of the brothers’ affidavits it had received. The complainant also was dissatisfied with the decision that the benefit due to her daughter was to be paid to a beneficiary fund administered by the administrator of the fund of which deceased was a member.
In the course of the arguments by the defendants, the following less commonly known principle was confirmed and trustees should take due cognisance thereof when dealing with the distribution of death benefits:
Read the full determination in this link…
(for investors and business)
If you permit it, you promote it
“If you permit it, you promote it” is 100 percent appropriate for managers and leaders no matter their rung on the executive ladder….you know that employee who always shows up at least 17 minutes late, completely oblivious that an apology and/or explanation is common courtesy? Yes, that one, the one who answers everything with “no problem,” though in fact there are tons of huge problems created by him and his cavalier attitude.”
Here are some rules that need to be observed in managing unwanted behaviour:
5 Key factors for creating a culture of engagement
As a leader, the engagement level of your people often comes down to how you interact with them, and how you support or hinder their development. I have noticed that great leaders, no matter their level in an organization, ensure that 5 key issues are addressed and necessary programs are in place to foster a culture of engagement.
Here are the 5 key elements (‘STAR’) for you to consider as you assess your current performance:
“Pleasure in the job puts perfection in the work.”