Industry

5. Death

Upon Death the following additional forms are also required before a claim will be processed:

• A certified copy of the Death Certificate
• A Death Claim Discharge form
• The Nomination of Beneficiary form
• Beneficiary(s) proof of age (ID; Marriage Cert; Omang; Birth Certificate)

6. Liquidation

Payment of claims

After receiving all the above documents the administrator will calculate withdrawal benefits, liaise with the department of taxes and communicate with the Principal Officer as to any possible queries arising. After all issues have been cleared the payment will be processed.

Member Information

– Benefit Statement

Principal Officer

The Principal Officer is the main point of contact between the Regulator and the fund. He shall be resident in Botswana and when out of the country for a period exceeding 30 days an alternate should be put in place. He is responsible for maintenance of provisions prescribed by the Act.

Trustees

Trustees are responsible for managing the business of the fund. Their main objective is to control, direct and oversee the running of the fund.

Duties of Trustees are to:

– Observe the terms of the Rules;

– Avoid conflicts of interest

– Act with due care and diligence

– Act in good faith

– Act with impartiality

– Invest the assets of the fund

– Settle disputes

– Delegate

Trustees should take out Trustees Indemnity Insurance which protects the fund against losses resulting from their negligence; dishonesty or fraud.

Service Providers

Service Providers enter into Service Level Agreements (SLA) (i.e. contracts) with their clients for specified periods. The SLA would detail the purpose of the agreement; define the services offered; the delivery times; the frequency of meetings; the duration of the contract; confidentiality; termination and dispute settlement.

1. Administrators

Proper administration is essential to ensure the smooth operation of the fund and to provide member satisfaction. Administration also includes compliance with the statutes governing the pension fund industry. This requires close liaison with the employer, the regulatory authorities and the investment managers.

Administrative services include:

• Accounting services include:
• Records keeping Accounting records
• Benefit calculations Management accounts
• Benefit statements Annual audit
• Reporting Statutory returns
• Signatories

2. Retirement Fund Consultancy

(Usually offered by the Administrator but can be obtained independently)

The Fund Consultant would provide services in the areas of pension and provident funds benefit structure design, including pension consulting as well as providing actuarial and technical advice and implementation. Consultancy also includes compliance with the statutes governing the pension fund industry. This requires close liaison with the Employer, Trustees, Members, Regulatory Authorities, Investment Managers and Administrators.

Consulting Services include:

• Drafting Rules
• Preparation of Members Handbook
• Initiating and Effecting Rule Changes
• Arranging for Actuarial Valuations and Simplifying the Reports
• Appointment of Auditors and Actuaries
• Ensuring the Fund is Compliant
• Training Trustees and Members
• Counselling Retiring Members
• Arranging Risk Benefits
• Providing Minute Taking Services
• Professional advice where required

3. Asset Managers

Asset Managers are appointed by the Trustees who would have normally gone out to tender for the service, inviting different managers to present their approach to retirement fund asset management.

Asset Management Services include:

• Review of membership profile – this often requires actuarial input.
• Assessment and recommendation of the Long Term Asset Allocation strategy
• Investment of assets within the strategy.
• Setting up appropriate performance benchmarks
• Monitoring and analyzing investment returns against performance benchmarks
• Monthly and quarterly investment reports
• Independent Custodial services for securities
• Asset insurance
• General Trustee Training

4. Auditors

At inception, a retirement fund is required to appoint an auditor who will independently audit the accounts of the

fund and prepare specific reports for the Regulator. These requirements are to ensure the safety of pension fund assets for the benefit of the members and their dependants.

5. Actuaries (where applicable)

Depending on the type of fund, an actuary has to be appointed to the fund. Actuarial services are fundamental to the design and ongoing monitoring of Defined Benefit assets which must be valued – by an actuary – every three years to ensure they are able to meet future liabilities. Defined Contribution funds on the other are less dependent on the services of an actuary but would need the service during times such as member profiling for asset allocation strategies.

6. Regulator & Commissioner General

The Regulator approves pension funds that are compliant with the requirements of the Retirement Funds Act. The Commissioner General approves funds that are compliant with the Income Act which sets limits relating to contributions, withdrawals and benefits.

7. Minister of Finance

The Minister has the power to make / alter regulations, as necessary / convenient / fair, pertaining to this Act. He also has the powers to set the investment requirements / limits of funds.from your fund, approach your member trustees for support.