The money in your retirement fund is probably the biggest asset that you will ever own and it is up to you to make sure your trustees are doing their best for you.
In terms of the law you have the right to elect at least 50 percent of the trustees on the management board of your fund. If you want to elect more trustees, it's up to you to negotiate that with your employer.
As a retirement fund member, you should elect trustees that you believe will have your interests at heart, so that you have a direct say in how your retirement fund benefits are managed. If you feel that your trustees are not pulling their weight, you should look at the rules of your fund to see what the procedures are for replacing a trustee.
If the rules are not adequate on this matter, you must negotiate with your employer to change the rules.
Dube Tshidi, head of the pensions department at the Financial Services Board, says the duties of your trustees include:
* Checking that your employer is paying over the contributions deducted from your salary to the retirement fund by the seventh day of the following month;
* Checking that your employer is paying its own contributions to the retirement fund;
* Making sure the fund discloses to you all the information to which you are entitled;
* Investing the assets of the fund prudently (if you think that this is not happening, you should take the matter up with the trustees); and
* Consulting you on any suggested changes to your retirement fund, including changes to the contributions that you and your employer are obliged to make.
The law says your fund must give you an explanatory pamphlet within three months of your becoming a member.
Tshidi says you are also entitled to a benefit statement from your fund once a year telling you what you will get if you resign and what will be due to you if you continue working until retirement.
Your fund must also consult you on any important decision, such as the restructuring of the fund. And when you die, your beneficiaries must be consulted about decisions made by the trustees.
The fund is also obliged to tell you what your rights are in the case of a dispute.
The Pension Funds Act is strict regarding the manner in which trustees must perform their duties. The law states that trustees should:
* Ensure that the interests of all members are protected at all times;
* Act with due care, diligence and good faith;
* Avoid conflict of interest; and
* Act impartially regarding members and beneficiaries.
Remember, your trustees are there to represent you. It is up to you to help them to do a good job.
If you have a complaint about your retirement fund, your first stop should be the trustees, after which you should follow the dispute resolution process set out in the rules of your fund. If this gets you nowhere, you have recourse to:
THE FINANCIAL SERVICES BOARD
P O Box 35655
Menlo Park 0102
Fax (012) 347 0221
THE PENSION FUNDS ADJUDICATOR
Professor John Murphy
P O Box 1041
Cape Town 8000
Fax (021) 45 4046