Issue: December 2006/ January 2007
The importance of an efficient administrative
platform for pension funds
Seelan Gobalsamy, Executive General Manager, Old Mutual Corporate
Retirement fund trustees are under increasing pressure to act in the best interest of their fund and its members. These pressures have further mounted over the past year as indicated by the many highly publicised rulings by the Pension Funds Adjudicator (PFA) in favour of members.
“These high profile cases raises serious questions about the ability of pension funds to back up their commitment to members,” says Seelan Gobalsamy, Executive General Manager, Old Mutual Corporate.
“The government-led process of reforming the retirement fund industry will further add to the pressure and culminate in stricter legislation to enforce greater transparency, compliance and accountability,” he says.
“The administrative burden on trustees is also heavy, leaving no margin of error when it comes to decisions about issues such as pension pay-outs, benefit claims for death and disability.”
“Recognising the fundamental truth that the buck stops with the fund trustees, Old Mutual embarked on a journey to adapt its retirement fund administration capability in line with the changing needs of employers, members and trustees,” he says.
Gobalsamy says Old Mutual is acutely aware of the need to assist trustees so that they can perform their fiduciary duties to the best of their abilities, and give them peace of mind.
Enter Mosaic Retirement Fund Administration. The dictionary definition of the word mosaic is “something consisting of a number of things of different types, forms, or colours”. In a sense this is how Mosaic works, providing an all encompassing structure and platform for retirement fund administration, says Gobalsamy.
He says the administration system of Mosaic ensures that data integrity is maintained, investments are made timeously according to members’ selection; accurate member records are maintained, and benefit claims are processed with the minimum of fuss. In a nutshell, Mosaic creates peace of mind by offering trustees and members superior risk management, governance and service.Gobalsamy says the cost structure of Mosaic is also completely transparent, and at a member level, Mosaic enables them to access every transaction detail via the Internet or through the member service centre.
The Mosaic administrative platform also caters for the different industry segments which include construction, logistics, health, agriculture, energy, manufacturing, media, financial services, commercial and the public sector. An account executive and service delivery manager are appointed to each fund joining the Mosaic Retirement Fund Administration platform to provide the best service possible.
Finally, service level agreements (SLA’s) are put in place with clients to ensure that standards are kept at a consistently high level.