A1: This is false. The fund is well-funded in terms of its asset base and investments. Currently, the fund has R26 billion in total assets under management, meaning it can cover all the liabilities of its members. The fund completes and submits asset declarations to the Financial Sector Conduct Authority (FSCA) annually and quarterly to the Reserve Bank.
A2: The MEPF is not under administration. The FSCA made an erroneous and unlawful decision regarding procedural shortcomings related to some municipalities involved with the fund, particularly concerning the election process for selecting member representatives and trustees. However, this decision does not mean MEPF is under administration. The board of trustees is performing its duties as usual. The recent advertorial placed by Ndou Attorneys in the Sowetan newspaper, which has since been retracted, was a misrepresentation and false.
A3: The FSCA's decision primarily concerns procedural matters related to certain municipalities, not the overall administration of MEPF. It’s crucial to emphasize that the implementation of the FSCA's decision has been suspended by agreement, allowing the MEPF board to continue its functions as duly elected fiduciaries.
A4: MEPF is actively engaging with the Financial Services Tribunal (FST) through a reconsideration application concerning the alleged procedural shortcomings highlighted by the FSCA. Our legal representatives are handling this matter, and we are committed to addressing any concerns raised by regulatory authorities promptly and transparently.
A5: Yes, the current MEPF board of trustees is legitimate and continues to discharge its duties as duly elected fiduciaries. The trustees were elected by member representatives from all participating employers, representing all members in 2021, and as a result, operate within their mandated responsibilities.
A6: MEPF is committed to fostering unity among its members and will not tolerate any attempts to incite division or confusion. We have open communication channels for members to raise concerns, and the board has the capacity to address these issues as they arise. We urge members to approach the fund whenever they have issues that need to be addressed.
A7: MEPF remains committed to transparency and accountability in its operations. The fund uses various platforms to engage with and share information with its members. These include member meetings with all stakeholders to address queries and educate members about the fund. There is also a WhatsApp channel that is constantly updated with information relevant to our valuable members. The fund is in the process of finalizing an app that will be available to all members for easy access to information.
A8: MEPF members are encouraged to use our open communication channels mentioned above to seek clarification or raise concerns about any developments related to the fund.
A9: The fund has a functioning board of trustees overseeing the implementation of strategies related to member fund investments. As a result, the fund's assets have consistently grown over the years. MEPF continues to operate within regulatory guidelines and diligently fulfills its fiduciary responsibilities to ensure the long-term sustainability of pension benefits for its members. Trustees are also members of the fund, and the decisions they make are always in the best interests of members.
A10: The MEPF is both a defined contribution (DC) and a defined benefit (DB) fund.
A11: The mandate with Mergence was terminated in October 2023 following a recommendation by the MEPF's independent actuaries. By law, mandates can be withdrawn on notice, and the contract with Mergence allowed for a no-fault termination. There were also substantial reasons to terminate, including Mergence exposing the MEPF to unacceptable risk in investments, underperformance, overcharging the fund, lacking transparency in accounting, and failing to properly carry out MEPF instructions.
A12: Mergence created financial products with the fund’s money for its own financial gain, offering these products to their clients. They conducted themselves unprofessionally, charging exorbitant fees without meeting targets, and appointed additional asset managers without approval, who also claimed fees. This led to the fund paying multiple high fees, which affected the fund's asset growth potential and led to losses.
A13: The MEPF board is pleased with the performance of Akani Retirement Fund Administrators. Since Akani took over administration more than 20 years ago, the fund's assets under management have grown from R1.2 billion to the current R26 billion, due to their guidance in developing the fund's investment strategy.
A14: The FSCA's search and seizure operation was considered unlawful, as Akani had been cooperating with the FSCA investigation since 2013. Akani applied to the High Court to set aside the FSCA's order and requested the reasons for the FSCA’s action. The High Court ruled in Akani's favor, ordering the FSCA to provide the decision record within ten days. Instead, the FSCA appealed, and the appeal was dismissed with costs. The FSCA is now appealing the High Court's decision at the Supreme Court of Appeal.
A1: Yes, provided the principal member is a female. A male principal member must provide a marriage certificate or registered customary marriage certificate at the application stage for the funeral benefit and when lodging a funeral claim to prove the relationship between the child's mother and himself.
A2: No, the fund only covers individuals with South African identity documents, as insurers don’t have policies that cover foreign nationals.
A3: Yes, but only for the principal member’s parents and parents-in-law.
A4: The principal member’s spouse and children under the age of 21 are covered.
A5: No, family members and extended family members are only covered if registered as such on the family funeral cover form, completed by the principal member and submitted to the fund.
A6: No, only one claim can be paid for one life assured. For example: - If spouses who are fund members both cover an extended family member, only one claim is paid if that person passes away. - If siblings in the fund have covered their parents, only one claim is paid upon the parent’s passing. - If parents in the fund have covered the same children, only one claim is paid if the child passes away.
A7: The fund will process and pay two claims since both are principal members.
A8: Yes, members whose municipalities are in default will not be covered for funeral claims or other risk benefits, such as death and disability benefits.
A9: Additional documents proving the relationship will be required by the fund at both the application and claim stages.
A10: Claims should be submitted within 12 months.
a) Funeral claim form b) Certified copy of the ID of the principal member c) Certified copy of the ID of the deceased d) Certified copy of the death certificate e) Certified copy of the ID of the beneficiary (if the principal member is deceased) f) Certified copy of the ID for the account holder (if the beneficiary does not have a bank account) g) Notice of Death - Bi1663 page 1 h) Notice of Death - Bi1663 page 2
A12: Funeral claim documents can be sent to pension@akafin.co.za
