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SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD: 

Demonstrate knowledge and understanding of the individual's basic rights and responsibilities under a retirement fund 
SAQA US ID UNIT STANDARD TITLE
123416  Demonstrate knowledge and understanding of the individual's basic rights and responsibilities under a retirement fund 
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 1  NQF Level 01 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
Reregistered  2018-07-01  2023-06-30  SAQA 06120/18 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2024-06-30   2027-06-30  

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
12546  Demonstrate knowledge and understanding of the individual`s basic rights and responsibilities under a group retirement fund  Level 1  NQF Level 01   

PURPOSE OF THE UNIT STANDARD 
This unit standard is intended to empower individual learners to understand their own retirement fund. It should enable them to act responsibly in electing Trustees of their own retirement fund. It is intended to be an introduction for retirement fund Trustees which is a national imperative.

The qualifying learner is capable of:
  • Indicating a retirement fund and the implications of the type of fund for the member.
  • Explaining the role and responsibilities of Trustees in a Board of Funds.
  • Explaining the rights and responsibilities of members of retirement funds in the election of Trustees.
  • Explaining the avenues available to a member who is unhappy with the governance of a retirement fund. 

  • LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
    It is assumed that learners are literate at NQF Level 1. 

    UNIT STANDARD RANGE 
    The typical scope of this Unit Standard is pension funds and provident funds.
  • A specific retirement fund means the learners own retirement fund.
  • Exit options include, but are not limited to, withdrawal, death, retirement and disability.
  • The types of retirement funds are pension, provident, defined contribution, defined benefit, insured and privately administered funds.
  • The main duties of a Trustee as specified in the pension fund legislation including the current Pension Funds Act, regulations, practice notes and other legislation.
  • The way in which contributions are structured could include the monthly contribution of the employer and the member, how the contribution is divided between investment, risk benefits and administration charges and how the contribution split affects the value of the member's eventual benefit.
  • Tax implication refer to the learners own fund and include implications for both the employer and employee.
  • Members' rights to elect Trustees include specific reference to the proportion of employer-appointed Trustees to member-elected Trustees. 

  • Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Indicate a retirement fund and the implications of the type of fund for the member. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    A retirement fund is named and an indication is given of the legal status of the fund and the main benefits to members who can belong to the fund. 

    ASSESSMENT CRITERION 2 
    The tax implications of belonging to a specific retirement fund are indicated with reference to the type of fund. 

    ASSESSMENT CRITERION 3 
    The exit options specific to a particular fund are named and an indication is given of the benefits payable under each circumstance and allowable deductions from the benefits. 

    ASSESSMENT CRITERION 4 
    An annual benefit statement is read and explained and an indication is given how contributions are structured and the information that is contained in the statement. 

    ASSESSMENT CRITERION 5 
    The standard procedures to be followed to update beneficiaries and communicate with the Fund in the event of the death of a member are explained and an indication is given of the consequences if a member neglects to communicate with a Fund. 

    ASSESSMENT CRITERION 6 
    The implications of a housing loan granted as security against the benefits of a fund are explained in terms of reduced benefits or increased payments to a fund. 

    ASSESSMENT CRITERION 7 
    The need to preserve benefits is explained with reference to the member's own situation. 

    SPECIFIC OUTCOME 2 
    Explain the role and responsibilities of Trustees. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    Reasons why a retirement fund has Trustees are named and an indication is given of how the member is affected if Trustees fail to perform their duties properly. 

    ASSESSMENT CRITERION 2 
    The main duties and responsibilities of a Trustee are identified and an indication is given of the knowledge and skills needed to be a Trustee and the implications of being a Trustee of a retirement fund. 

    ASSESSMENT CRITERION 3 
    The role of Trustees in handling queries or complaints and avoiding disputes is indicated with examples. 

    ASSESSMENT CRITERION 4 
    Documents that a member should receive from the Trustees of a retirement fund are identified with reference to the Pension Funds Act. 

    SPECIFIC OUTCOME 3 
    Explain the rights and responsibilities of members of retirement funds in the election of Trustees. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The qualities essential in a Trustee are discussed and an indication is given of how one would recognise these qualities in a colleague. 

    ASSESSMENT CRITERION 2 
    A member's right to elect Trustees is explained and an indication is given of fund requirements for Trustee elections with reference to the fund rules. 

    ASSESSMENT CRITERION 3 
    The responsibilities of members in the election of Trustees are identified and an indication is given of the consequences of neglecting to exercise these rights diligently. 

    SPECIFIC OUTCOME 4 
    Explain the avenues available to a member who is unhappy with the governance of a retirement fund. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The procedure to be followed in case of a query or complaint is explained with reference to a specific fund. 

    ASSESSMENT CRITERION 2 
    The procedure to be followed in case of a dispute is explained in terms of current legislation and regulations. 

    ASSESSMENT CRITERION 3 
    The role of the Pension Funds Adjudicator is explained with reference to his/her role in addressing member complaints. 


    UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
  • Anyone assessing a candidate against this unit standard must be registered as an assessor with the relevant ETQA or ETQA where a Memorandum of Understanding (MOU) exists with the relevant ETQA.
  • Any institution offering learning that will enable achievement of this Unit Standard must be accredited as a provider through the relevant ETQA or ETQA where a Memorandum of Understanding (MOU) exists with the relevant ETQA.
  • Moderation of assessment will be overseen by the relevant ETQA according to the moderation guidelines and the agreed ETQA procedures. 

  • 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 IDENTIFYING 
    The learner is able to make a responsible decision in identifying the qualities essential in a Trustee. 

    UNIT STANDARD CCFO COMMUNICATING 
    The learner is able to communicate effectively in explaining his/her rights and responsibilities as a member of a retirement fund. 

    UNIT STANDARD CCFO DEMONSTRATING 
    The learner is able to see the world as a set of related systems in understanding the consequences of exercising his/her rights and responsibilities as a member of a retirement fund and in the election of unsuitable Trustees. 

    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 replaces unit standard 12546, "Demonstrate knowledge and understanding of the individual`s basic rights and responsibilities under a group retirement fund", Level 1, 1 credits.

    Search words:
  • Retirement fund; member retirement fund; trustee. 

  • QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Elective  48783   National Certificate: Financial Services  Level 2  NQF Level 02  Reregistered  2023-06-30  INSETA 


    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.
     
    1. Faisit (Pty) Ltd 
    2. Investmentwise (Pty) Ltd 



    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.