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PRIVATE SECURITY SECTOR PROVIDENT FUND
EMPLOYERS INFORMATION SHARING SESSIONS 2017
AGENDA
• INTRODUCTION
• PSSPF BENEFITS
• INVESTMENT
• PSSPF DEVELOPMENTS
• GOVERNANCE
• COMPLIANCE
• STATISTICS
• SPECIAL PROJECTS
• STAKEHOLDER COMMUNICATIONS
• FUND ADMINISTRATORS
• TRUSTEES
• CONTACTS
• PSSPF established in 2002 with a sole purpose of giving security employees peace of mind on their financial security when they retire.
• The Fund is one of the largest provident funds with following membership statistics: 242 677 active members and 79 513 inactive members
• The promulgation of this Fund by the Minister of Labour was to ensure that it becomes compulsory for every employee and employer in the Private Security Sector to contribute to the Fund.
• In fulfilling its objective, it works in conjunction with regulatory and enforcement agencies such as: Private Security Industry Regulatory Authority (PSIRA), Department of Labour, South African Police Services (SAPS) , Financial Services Board (FSB), Pension Fund Adjudicator (PFA), Trade Unions, Employer Organisations, Employers and Members
INTRODUCTION
The PSSPF currently offers the following benefits:
39 times monthly salary as a death benefit
39 times monthly salary as a permanent and total disability benefit
A R30,000 funeral benefit for the member and spouse (including cultural and
common-law marriages), with reduced benefits on a sliding scale for minor
children and still births. This cover also includes a tomb stone and counselling,
amongst other support structures. Cover for loss of body parts, benefit calculated
on a sliding scale according to the level of such loss.
On retirement, members receive accumulated credit e.g. the member’s full
contribution and the employer’s contribution towards retirement and the full fund
interest.
PSSPF BENEFITS
• The PSSPF currently has R6.2 billion invested, in addition to the Death and
Disability Reserve account.
• This, despite an extremely difficult period in December 2015 and January 2016, is
a significant increase over the previous year’s figure of R5 billion.
• The growth over the last year averaged 10.89% after costs, while the CPI stood at
6.13%
PSSPF INVESTMENT VALUES
• A New Board took office with effect from 1 September 2016, their details and the Committees they serve under are available on the PSSPF website (www.psspfund.co.za).
• PSSPF has appointed a new administrator effective 1 September 2016 – SALT Employee Benefits. There is steady progress in clearing the claims backlog - paying an average of 10 000 claims a month including both backlog and current claims.
• The Fund through SALT is developing a mobile application to provide members with real time, reliable access to their fund values and other information. Members will be able to view and update their information and can also access the application on the web.
• It is extending its reach throughout the country through the expansion of the mobile office project. Access to the fund has been increased through the deployment of these mobile services and other initiatives. In addition, the fund uses approved tracing agents to trace beneficiaries. All approved tracers are listed on the PSSPF website (www.psspfund.co.za).
DEVELOPMENTS IN THE FUND
• The Fund believes good governance assists the Board of Trustees to deliver long-term stakeholder value.
• A Risk Officer was employed to provide reasonable assurance regarding the achievement of objectives in terms of effectiveness and efficiency of operations; reliability of financial reporting; and compliance with laws and regulations.
• The Fund’s employees are also at the heart of its operations as they actively interface with members. Therefore, the Fund objective is to always attract and retain the appropriate skills and talent to ensure that the human resource function can support all of the Fund’s business areas.
HOW IS THE FUND GOVERNED
• Employers should pay not later than the 7th of the month and submit schedules not later than the 15th of the month as prescribed.
• Employers are liable for Late Payment Interest in the event of late payment.
• Some employers are registered with the fund but are not making any payments, while others are only paying a limited number of member contributions and/or providing conflicting membership schedules. The other employers are paying member and employer contributions inconsistently.
• The employers that don’t submit the remittance advices or schedules are in breach of the Pension Funds Act.
• Criminal prosecution of executive members of the employer is perhaps the most important and compelling compliance tool at the Fund’s disposal to ensure compliance.
COMPLIANCE
• To oversee this process to the end in terms of commencing prosecution, the Fund will play multiple roles including that of compliance officer, investigator, initiator and state witness.
• Of the 3451 participating employers – the Fund has identified 2928 employers that are non-compliant which results in challenges experienced by the Fund & members.
• In February 2017, 457 AODs amounting to R344 million were secured by the Fund and a total of R191 million has been received by the fund.
• As at 4 May 2016, the Fund has litigated against 111 non-compliant employers. Judgment has been granted against 18 employers, 86 matters are currently in the court process, and 7 matters have been handed over for criminal litigations.
• The Pension Fund Adjudicator now receives approximately 254 matters per month from members and issued 137 determinations are against employers. These are mostly due to the non-compliance of employers.
COMPLIANCE continued
INDUSTRY REGISTERED STAKEHOLDERS VS THE FUND
Security Businesses registered (and active) with PSIRA:
8648
Security Businesses in Guarding
6847
Security Businesses participating in the PSSPF
3451
Totally compliant security companies 523
Security Officers registered (and active) with PSIRA
497 394
Security Officers registered (and active) with the PSSPF
242 677
REGISTERED EMPLOYERS AND ACTIVE MEMBERS
REGISTERED EMPLOYERS
During the past three months alone, some 86 new employers have registered with the PSSPF
As at April 2015 2933
As at April 2016 3230
As at April 2017 3451
As at April 2015 181 503
As at April 2016 181 503
As at April 2017 242 677
ACTIVE MEMBERS
UNALLOCATED AND ARREAR CONTRIBUTIONS
UNALLOCATED CONTRIBUTIONS:
• Project started at end of October 2013. The initial total unallocated contribution amounted to R320m from 1,280 employers
The current situation
• Unallocated from ACA - R 257,6 m. Unallocated Salt - R 91,4 m. A special Task Team
set up to reduce the Unallocated Contribution amount.
ARREAR CONTRIBUTIONS as at FEBRUARY 2017
• A total of 457 (394 in 2016) AODs’ has been concluded to a total value of R 344 million compared to R 275 980 000 in 2016 including legal and collection fees or late payment interest. Of that, R 191 million (R 149 500 000 in 2016) has already been collected
PROJECTS ON DORMANT MEMBERS
Project started end of March 2014. Data was validated against Home Affairs data to determine actions. ER’s informed of the process for all “ Live” members Deceased Members (Deceased Members Split - Deceased in Service, Deceased Withdrawal) This is ongoing • The number of pending claims changes due to members/employers continuing not
to submit claim forms. Progress from last presentation to 30 April 2016
PROGRESS
FUND COMMUNICATION TO STAKEHOLDERS
• Ongoing engagement with stakeholders (Members and Employers) is a key element of the Fund’s strategy to get employers to comply and update members on the Fund’s initiatives to improve the service to Members.
• Main Focus is on issues of Compliance and progress made by the Fund in paying claims and resolving the backlog of claims.
• In reaching out to stakeholders the Fund has used:
– Print Media (National, Regional and Local) and Broadcast Media (Mainstream and Community)
– Identified Journalists
– SMS Campaigns
– Fund Mobile Office Project
– Facebook and Twitter
– Newsletters
– Electronic Communication
– Relevant Publications
– Industry Forums
FUND COMMUNICATION TO STAKEHOLDERS continued
• The third annual Golf Day hosted by the Fund very successful with Stakeholders, Trustees, Service Providers and Employers. The aim of the Golf Day is to promote compliance.
• Website facelift complete and updated regularly.
• Social Media Coordinator – addresses an average of 382 queries per day.
• Benefit Statements will be issued during the last Quarter this year.
SOME OF THE PUBLICITY RECEIVED BY THE FUND
ABOUT SALT EMPLOYEE BENEFITS
• SALT stands for Smart Administration Leveraging Technology
• It currently has 600 000 members under administration, delivering innovative yet simple solutions for all group life, pension and provident fund administration needs.
• SALT Employee Benefits was appointed as Administrator of the Private Security Sector Provident Fund with effect from 1 September 2016.
• To date, SALT EB has paid 33 563 member claims.
• To date, SALT EB has allocated R 908 313 244.59 to member records which includes contributions not allocated by the previous Administrator.
FUNERAL AND ACCIDENTAL BENEFITS BOPHELO LIFE INSURANCE
Note – Stillborn: From the 26th week of pregnancy
EMPLOYER TRUSTEES
Marchel Coetzee Claims & Communications
Hennie Myburgh Investments, Legal & Compliance and Exemptions
Chris Laubscher Investments & Risk & Governance
Cobus Bodenstein Administration & Risk & Governance
Tony Botes Claims, Legal & Compliance and Exemptions
Steve Conradie Administration & Communications
CONTACT DETAILS
Marchel Coetzee [email protected]
Hennie Myburgh [email protected]
Chris Laubscher [email protected]
Cobus Bodenstein [email protected]
Tony Botes [email protected]
Steve Conradie [email protected]
SOCIAL MEDIA ACCESS FOR MEMBERS AND EMPLOYERS
Private Security Sector Provident Fund”
Website www.psspfund.co.za
@PSSPFund
WhatsApp number 082 053 0245
SMS line 082 053 0245
Fax number 086 613 1901
E–mail [email protected]
MOBILE OFFICES
THANK YOU FOR YOUR TIME
QUESTIONS?
PSSPF CONTACT DETAILS E-mail: [email protected]
Website: www.psspfund.co.za
Fax: 086 613 1901
Call Centre: 0861 177 775