Kobus Hanekom Freddy Mwabi

1. benefit structure ... from day one Kobus Hanekom Freddy Mwabi

2. 21 000 6 000 R.I.P.

3. awareness

4. visibility

6. breath alyser

7. retire ment drink driving

8. driving under the influence of APATHY employees

9. funding under the influence of ABDICATION employers

10. Q. 90%do not 14%not interested in detail 50%happy with decisions Benchmark 2013 Do members revisit the decisions they made on joining?

11. Q. Benchmark 2013 Do members revisit the decisions they made on joining? claim no feedback since joining the fund 50%

12. 50% 41%not interested! trust Trustee decisions Q. Benchmark 2013 How do members make decisions? 60% stick to the default

13. 68% 57% want a letter (they can file!) would prefer email Q. How do you want to receivemember communication? Benchmark 2013

14. Q. Benchmark 2013 How do members get advice? 43% have not made use of financial adviser

15. Q. Benchmark 2013 How do members get advice? 63% not prepared to pay for financial advice

16. 25% 54% have access to internet never visit online communication Q. How do you feel aboutmember communication? Benchmark 2013 47% ticked ‘I understand most of the benefit statement’

17. Benchmark 2013 Q. what is all of this telling us? • members are oblivious?employers / trustees do not consider themselves responsible for a good outcome? how can we nudge them in the right direction?

19. the pension payableduring retirement BEGIN with theend in mind GOVERNANCE not just compliance with rules FOCUS on the outcome 2012 Benchmark

21. 2006 Benchmark survey 2007 member surveys ... 2008 • apatheticlackunderstanding • suffer from inertia • short-term thinking • their decisions often destroy value 2009 2010 2011 2012 2013 ... behavioural finance

22. adapt communication and benefit structure architecture of choice odds stacked heavilyin the favourof members accept member apathy as a reality of life

24. ‘ speak to your financial adviser ’ • abdication of responsibility by trustees?does this serve best interests of members? • remember ... 63% not prepared to pay!

26. new legislative framework ... trustees required to:- • implement defaults • guide members through annuitisation process ... nudge trustees to take responsibility

27. change MINDSET OF ALL STAKEHOLDERS OBJECTIVES OFRETIREMENT FUNDS

28. ‘SAFE’ to EFFICIENT

29. TARGETED retirement benefits CHOICE default strategies MEMBERS guidedsupport PLAN fund governanceand riskmanagement approach ...

30. the UK experience 6 principles

31. the UK experience • designed to deliver good outcomes • governance framework • fit and proper management • effective monitoring • administration, processes and records • member communication 6 principles

32. SANLAM approach designed to delivergood outcomes the UK experience • targeted benefits • horsepower • consumption • default strategies • contribution rate • preservation • investment portfolio • annuitisation • schemes are designed to be durable, fair and deliver good outcomes for members 1.

33. SANLAM approach the UK experience governance framework • a comprehensive scheme governance framework is established at set-up, with clear accountabilities and responsibilities agreed and made transparent • fund governanceand risk management plan(FGRMP) • duties and accountabilities • when and by whom 2.

34. SANLAM approach fit and proper management the UK experience • those who are accountable for scheme decisions and activity understand their duties and are fit and proper to carry them out • enhanced PF130 documentation • minimum training done • FGRMP actively managedby principal officer (PO) • enhanced PO duties 3.

35. SANLAM approach the UK experience effective monitoring • governance assurance • FGRMP • risk schedule • assessments of all officers, subcommittees and service providers • King III (TCF) • assessment of complaints and general fund activities • schemes benefit from effective governance and monitoring through their full lifecycle 4.

36. SANLAM approach administration, processes and records the UK experience • comply with SLA • fees competitive • schemes are well administered with timely, accurate and comprehensive processes and records 5.

37. SANLAM approach the UK experience member communication • communication to members is designed and delivered to encourage member engagement so that they are able to make informed decisions about their retirement savings. • guidance • member information sessions and tools • support • financial advice to members on joining, termination and 5-years before retirement • facilitated / offered by fund 6.

38. a head?

39. are the ones who establish funds in the first place and will live with its shortcomings for longer than any stakeholder are required to run the fund in accordance with the rules and the law TRUSTEES EMPLOYERS

40. RECLAIM LEADERSHIP POSITION UMBRELLA FUND AND STAND-ALONE E EMPLOYER

42. planning for ONE DAY

43. planning from DAY ONE

44. funding under the influence of ABDICATION employers

45. driving under the influence of APATHY employees