There are numerous duties imposed by the law on trustees. Some of the duties of trustees include the following:
take all reasonable steps to ensure that the interests of members in terms of the rules of the fund and the provisions of the Pension Funds Act are protected at all times
act with due care, diligence and good faith
avoid conflicts of interest
act with impartiality in respect of all members and beneficiaries
the trustees must ensure that proper registers, books and records of the operations of the fund are kept, which includes proper minutes of all resolutions passed by the board
the trustees must ensure that the fund employs proper control systems
the trustees must ensure that adequate and appropriate information is communicated to the members of the fund informing them of their rights, benefits and duties in terms of the rules of the fund
the trustees must obtain expert advice on matters where they lack sufficient expertise
the trustees must ensure that the rules and the operation and administration of the fund comply with the Pension Funds Act, the Financial Institutions (Investment of Funds) Act and all other applicable laws
NOTE: Investment performance will depend on the growth in the underlying assets of the portfolios you chose. Inflation and prevailing market conditions will also influence the growth. Please speak to your financial adviser about whether your current investment portfolios are appropriate for your needs and suit your risk profile, because you are solely responsible for regularly monitoring the performance of your investment portfolios.
Role of the Principal Officer
Every fund must appoint a Principal Officer in terms of section 8 of the Pension Funds Act. The appointment of the Principal Officer is subject to the approval of the Registrar.
The Principal Officer is the official accountable to the Registrar on behalf of the Fund. The duties of the Principal Officer are determined by the fund rules and the Pension Funds Act. These duties include:
signing and submitting rule amendments
submitting annual financial statements to the Registrar.(Note that you can request a copy of the financial returns from the Principal Officer or view a copy at Liberty Life's head office (1 Ameshoff Street, Braamfontein).
signing all fund documents to be submitted to the Registrar
furnishing prescribed information to fund members and
representing the fund in litigation and complaints