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SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD THAT HAS PASSED THE END DATE: 

Analyse the Pension Funds Act as it applies to the administration of retirement funds 
SAQA US ID UNIT STANDARD TITLE
117120  Analyse the Pension Funds Act as it applies to the administration of retirement funds 
ORIGINATOR
SGB Insurance and Investment 
PRIMARY OR DELEGATED QUALITY ASSURANCE FUNCTIONARY
-  
FIELD SUBFIELD
Field 03 - Business, Commerce and Management Studies Finance, Economics and Accounting 
ABET BAND UNIT STANDARD TYPE PRE-2009 NQF LEVEL NQF LEVEL CREDITS
Undefined  Regular  Level 4  NQF Level 04  3 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
Passed the End Date -
Status was "Reregistered" 		 2018-07-01  2023-06-30  SAQA 06120/18 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2026-06-30   2029-06-30  

In all of the tables in this document, both the pre-2009 NQF Level and the NQF Level is shown. In the text (purpose statements, qualification rules, etc), any references to NQF Levels are to the pre-2009 levels unless specifically stated otherwise.  

This unit standard replaces: 
US ID Unit Standard Title Pre-2009 NQF Level NQF Level Credits Replacement Status
10393  Demonstrate knowledge and understanding of the Primary legislation that impacts on retirement funds  Level 4  NQF Level 04  2   

PURPOSE OF THE UNIT STANDARD 
This unit standard is intended for learners in the insurance retirement fund industry who work in Employee or Group Retirement Benefits, Trustees, learners in Life insurance and other interested parties. It will be useful for learners in transfer departments, accounts departments, claims departments, financial planners and intermediaries,

The qualifying learner is capable of:
  • Interpreting the objectives of the Pension Funds Act and the requirements for the registration of retirement funds.
  • Analysing the sections of the Pension Funds Act that relate to governance by the relevant role players.
  • Analysing sections of the Pension Funds Act that apply to the financial operation and the flow of funds.
  • Analysing sections of the Pension Funds Act that apply to contributions, payments and allowable deductions. 
    		•

    LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
    There is open access to this unit standard. Learners should be competent in Communication, Mathematical and Financial Literacy at Level 3. 

    UNIT STANDARD RANGE 
    The typical scope of this unit standard is
  • The Pension Funds Act (24 of 1956) as amended, and the accompanying regulations and Pension Fund Circulars.
  • Payment of death benefits includes payments to nominees only, dependants only, dependants and nominees and neither dependants or nominees.
  • Retirement Annuities, pension and provident funds (including umbrella funds) and preservation funds.
  • Funds include foreign, industrial, South African based and public funds.
  • Circumstances under which benefits should be protected include, but are not limited to, pensionable service, capital amount, and guarantees other than transfer to a preservation fund. 
    		•

    Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Interpret the objectives of the Pension Funds Act and the requirements for the registration of retirement funds. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    The reasons for the Act are explained with reference to the objectives defined in the Act. 

    ASSESSMENT CRITERION 2 
    The different requirements for registration under the Act are explained with reference to different types of funds. 

    ASSESSMENT CRITERION 3 
    Circumstances under which a Fund would be required to register or be exempted from registration under this Act are named with examples. 

    ASSESSMENT CRITERION 4 
    The concept of a non-exempt fund is explained with reference to the assets of the fund, actuarial evaluations and the annual audit. 

    ASSESSMENT CRITERION 5 
    The concept of an audit exempt fund is explained with reference to the assets of the fund. 

    ASSESSMENT CRITERION 6 
    The concept of a valuation exempt fund is explained with reference to the assets of the fund, actuarial evaluations and the annual audit. 

    SPECIFIC OUTCOME 2 
    Analyse the sections of the Pension Funds Act that relate to governance by the relevant role players. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    Requirements regarding the constitution of the Board of Trustees are explained and an indication is given of the duties and responsibilities of the Board and the implications of negligent and incorrect decisions. 

    ASSESSMENT CRITERION 2 
    The role of the Principal Officer is explained with reference to his/her duties. 

    ASSESSMENT CRITERION 3 
    The role of the Registrar of Pension funds is explained with examples. 

    ASSESSMENT CRITERION 4 
    The role and duties of the Administrator are explained and an indication is given of the consequences of non-compliance with the Act. 

    ASSESSMENT CRITERION 5 
    The use of Pension Fund Circulars by the Financial Services Board is explained with reference to interpretation of the Pension Funds Act. 

    ASSESSMENT CRITERION 6 
    The role of the Pension Funds Adjudicator is explained and an indication is given of the scope of his/her duties. 

    ASSESSMENT CRITERION 7 
    Investment instruments that are available to funds are named with examples. 

    SPECIFIC OUTCOME 3 
    Analyse sections of the Pension Funds Act that apply to the financial operation and the flow of funds. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    Circumstances under which benefits should be protected are explained with reference to the transfer of a member. 

    ASSESSMENT CRITERION 2 
    Circumstances under which a member may transfer his/her fund benefit to a preservation fund are analysed with reference to the rules of the fund and SARS retirement fund notes. 

    ASSESSMENT CRITERION 3 
    Circumstances under which retirement funds may be liquidated are explained with reference to voluntary and involuntary liquidation. 

    ASSESSMENT CRITERION 4 
    Data required for the preparation of financial records for the audit is identified according to an organisation's requirements and an indication is given of the legal time frames for submission of the audit. 

    ASSESSMENT CRITERION 5 
    Circumstances under which a fund is subject to periodic valuations are explained with examples. 

    ASSESSMENT CRITERION 6 
    The consequences if an employer fails to pay pension fund contributions timeously are explained with reference to the roles of the intermediary, Trustee, Principal Officer, Attorney General, Financial Services Board, monitoring person and administrator. 

    ASSESSMENT CRITERION 7 
    The application of legislation relating to surplus apportionment is explained with reference to a specific fund. 

    SPECIFIC OUTCOME 4 
    Analyse sections of the Pension Funds Act that apply to contributions, payments and allowable deductions. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    The difference in the way in which contributions to pension funds and provident funds are taxed are explained with examples. 

    ASSESSMENT CRITERION 2 
    Circumstances under which Trustees may authorise deductions from fund benefits are explained and an indication is given of the evidence required to substantiate the deduction. 

    ASSESSMENT CRITERION 3 
    Requirements of the Pension Fund Act regarding the payment of death benefits applicable to all funds are explained with reference to four case studies. 

    ASSESSMENT CRITERION 4 
    Conditions under which fund benefits should be paid to a third party are explained in terms of the Maintenance Act, Divorce Act, Income Tax Act and the Pension Funds Act. 

    ASSESSMENT CRITERION 5 
    The protection of fund benefits is explained with reference to the member's creditors and insolvency. 

    ASSESSMENT CRITERION 6 
    Circumstances under which administrators are obliged to deduct income tax on benefits are explained with examples. 


    UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
    This Unit Standard will be internally assessed by the provider and moderated by a moderator registered by a relevant accredited ETQA or an ETQA that has a Memorandum of Understanding with the relevant accredited ETQA. 

    UNIT STANDARD ESSENTIAL EMBEDDED KNOWLEDGE 
    N/A 

    UNIT STANDARD DEVELOPMENTAL OUTCOME 
    N/A 

    UNIT STANDARD LINKAGES 
    N/A 


    Critical Cross-field Outcomes (CCFO): 

    UNIT STANDARD CCFO COLLECTING 
    The learner is able to collect, organise and critically evaluate information relating to the Pension Funds Act (24 of 1956) as amended. 

    UNIT STANDARD CCFO COMMUNICATING 
    The learner is able to communicate effectively in explaining the various sections of the legislation. 

    UNIT STANDARD ASSESSOR CRITERIA 
    N/A 

    REREGISTRATION HISTORY 
    As per the SAQA Board decision/s at that time, this unit standard was Reregistered in 2012; 2015. 

    UNIT STANDARD NOTES 
    This unit standard has replaced 10393 which was "Demonstrate knowledge and understanding of the Primary legislation that impacts on retirement funds", Level 4 with 2 credits 

    QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Core  93994   National Diploma: Labour Relations Practice: Dispute Resolution  Level 5  NQF Level 05  Passed the End Date -
    Status was "Reregistered"     		 2023-06-30  As per Learning Programmes recorded against this Qual 
    Elective  49089   National Certificate: Financial Services  Level 3  NQF Level 03  Passed the End Date -
    Status was "Reregistered"     		 2023-06-30  INSETA 
    Elective  49649   Further Education and Training Certificate: Long-term Insurance  Level 4  NQF Level 04  Passed the End Date -
    Status was "Reregistered"     		 2023-06-30  INSETA 
    Elective  49529   Further Education and Training Certificate: Long-Term Risk Assessment  Level 4  NQF Level 04  Passed the End Date -
    Status was "Reregistered"     		 2023-06-30  INSETA 
    Elective  66613   Further Education and Training Certificate: Wealth Management  Level 4  NQF Level 04  Passed the End Date -
    Status was "Reregistered"     		 2023-06-30  As per Learning Programmes recorded against this Qual 


    PROVIDERS CURRENTLY ACCREDITED TO OFFER THIS UNIT STANDARD: 
    This information shows the current accreditations (i.e. those not past their accreditation end dates), and is the most complete record available to SAQA as of today. Some Primary or Delegated Quality Assurance Functionaries have a lag in their recording systems for provider accreditation, in turn leading to a lag in notifying SAQA of all the providers that they have accredited to offer qualifications and unit standards, as well as any extensions to accreditation end dates. The relevant Primary or Delegated Quality Assurance Functionary should be notified if a record appears to be missing from here.
     
    NONE 


    All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.