1. Clean Data: A Crucial Factor to Pensioner Happiness

2. Agenda Introduction Trustees Data Issues in the market Reliance on third parties Case Studies Suggestions Conclusion

3. Introduction SolveCo Project-based Various Projects through Africa Forum to discuss experience The need for more focus on data

4. Trustees Main duties: Manage the Fund Fiduciary duties Trustees informed on need to know basis Normally not involved in day to day running of fund Change regularly – history lost, no transfer of knowledge Not enough experience and training Conflicts of interest

5. Good Data Trustees SoF and benefit payments are correct Appropriate advice Less data reserves Lower and fewer PI claims

6. Issues in the Market Problem with migrations – no testing done on old data and new system Unclaimed benefits seems to be a general problem Transfers in and switches between portfolios have to be checked carefully Actuaries not always keen to share all information Surplus allocations are always a problem Mismatch between contributions received and invested Mismatch between the valuation report and the financials Incomplete audit schedules Poor documentation and communication Poor filing of fund history

7. Reliance on Admin System Trained, passionate staff Human Error Short Cuts Documentation Migration Errors Inaccurate history keeping Audit trails not correct

8. Reliance on Auditors and Actuaries Trustees have high regard for auditors and actuaries Trustees do not always understand due to unclear reports Auditors and actuaries place responsibility on administrator

9. Reliance on Consultants and PO’s Consultants independent Not always experienced Conflicts of interest

10. Case Study 1: Surname Changes Miss Adams became Mrs Brits Miss Adams exited Mrs Brits treated as new member Miss Adams’ money moved to unclaimed benefits  Lost in the system Uninformed members are unaware of size of SoF

11. Case Study 2: Section 14 Transfers Timing of allocation/investment – more often than not a problem Money in bank, not allocated on system Unitised funds: not using correct unit price Bonus-rated funds: loss of investment return

12. Case Study 3: Exits and Re-entries Statuses do not correctly change when exit Member re-enters the fund – different scenarios

13. Case Study 4: Missed Contributions Missed/Unallocated Monthly Contributions Section 13b or Section 14 Overlapping months’ contributions Neither administrator takes responsibility for that money and the investment thereof Very difficult to pick this up

14. Case Study 5: Uniqueness of Funds All parties involved must understand the funds For example: Airline’s fund – hostesses get married a lot – a lot of surname changes Cleaning services – high turn-around in staff Security services – mores PHI/GLA claims than a bank for example

15. Case Study 6: Rebuild Exercise Report on rebuild exercise Report inconsistent and contradicting itself Confusing everyone

16. Case Study 7: Unclear Instructions “Apply a bonus of 9.4329% to all active members” No date for when to apply No rules how to apply No list Administrator must do the calculation Actuaries are far removed from the administrator

17. Case Study 8: Choose the correct service provider Data clean-up exercise “The trustees have failed, as required by the Pension Funds Act, to take reasonable steps to ensure that members’ interests are protected, she (Muvhango Lukhaimane, Pension Fund Adjudicator) says.” Trustees were found liable in their personal capacity for R20m – case pending

18. Case Study 9: Proper Record Keeping “Absolutely Bloody Final Data for merge 20100421.xlxs” Actual file of an administrator Worked through their services History of the fund gets lost

19. Suggestions Make sure all parties understand the funds Appoint appropriate experienced service providers Make sure SLA’s are in place, up to date and enforced PI cover for service providers in place Make time to understand audit and valuation reports Take responsibility for your data Go through proper testing when changing systems

20. Conclusion Problems exist Understand limitations Take responsibility for your data

21. Questions? Megan Cronjé megan@solveco.co.za +27 11 782 4725