FSB CLEARS AKANI RFA OF MALADMINISTRATION

FSB CLEARS AKANI RFA OF MALADMINISTRATION

AKANI RFA one of the biggest 100% black owned retirement fund administrators with no backing of monopoly capital in South Africa welcomes the Financial Services Board (FSB) pronouncements on its four year investigation on allegations of maladministration of the Municipal Councilors Pension Fund (MCPF) which clears it of maladministration.

AKANI RFA further welcomes and appreciates the removal of the FSB press statement, which had been posted on its website even after the regulator’s fears were allayed. “Now that the dark cloud hanging over AKANI RFA head for over four years is cleared, AKANI RFA is ready to push forward to grow its market share in the financial services industry that remains dominated by monopoly capital. AKANI RFA is focusing its attention on quality systems improvement to deliver, better and faster services to our clients to retain its competitiveness.”

AKANI RFA being the administrator of the largest pension fund in the municipal sector in South Africa, the Municipal Employees Pension Fund (MEPF) congratulates the South African Local Government Bargaining Council (SALBC) collective agreement for reaching an agreement on the employer contribution of 18% towards the retirement funds especially 9.1 and 9.2 of Salary and Wage collective Agreement 2012/2013 to 2014/2015 with effect from the 1st July 2012. “This Collective Agreement begins to standardize the conditions of service, transform and rationalize the retirement fund industry in the municipal sector, which currently has over 79 pension funds with different employer contributions by the same employer and same sector.”

AKANI RFA wishes to bring to the attention of MEPF members that the employer contribution will remain the same where employer has been contributing more than 18%. We also wish to assure MEPF members as our clients that their benefits will not be affected as Collective Agreement 9.4 of 2012/13 to 2014/15 states “Notwithstanding anything to the contrary herein, any employee who currently receives a monthly contribution rate that is higher than the eighteen (18) percent referred to in clause 9.3 above, will retain such higher employer contribution rate.”

The MEPF welcomes the Collective Agreement for moving from Defined Benefit to Defined Contribution and as such the MEPF with effect from the 1 July 2012; it will only be accepting new members on a Defined Contribution basis.

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