Presentation by the Office of the Pension Funds Adjudicator

To the Standing Committee on Finance 27 October 2011

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• Abel Sithole : Chairman Financial Services Board (FSB)

• Elmarie de la Rey : Acting Pension Funds Adjudicator

• Makhado Ramabulana: Senior Assistant Adjudicator

• Muhammed Moga : Chief Financial Officer

• Dube Tshidi : Executive Officer of the FSB

• Dawood Seedat : Chief Financial Officer of the FSB

Presentation Team

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Office of the Pension Funds Adjudicator (OPFA)

The mandate of the OPFA is to ensure a procedurally fair, economical and expeditious resolution of complaints in terms of the Pension Funds Act. ( page 1 of the annual report).

The OPFA is funded from levies raised from registered pension

funds.

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Legislative and Regulatory Framework

The OPFA is regulated by the Pension Funds Act and the Public Finance Management Act.

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The OPFA’s Operational Review

Case management (page 5)Human resources (page 6 and 7)Improvements of conditions of service (page 6)Skills development (page 6)

Performance against measurable objectives (page 44 – 49)

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Dispute resolution activities

• Complaints statistics (page 8-9)

• Determinations (page 10-18)

• Some 6000 complaints received per annum

• Complaints received by mail, email, fax and website

• After registration each complaint is checked for

completeness, jurisdiction, time-barring etc

• Copy of complaint to respondents requesting response

• Copy of response to complainant for reply

• Decision to refer complaint for conciliation or formal

determination

• Conciliation

• Pre-conciliation

• Conciliation hearing

• Determination

• Further Investigation

• Draft determination for consideration by Adjudicator

• Formal determination by Adjudicator

• Copy of determination sent to parties and original

lodged with court

• Possibility of determination taken on review to High

Court

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Review of financial

information for

the year ended 31

March 2011

Financial Performance

(page 21- 43)

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Abridged statement of financial performance for the year ended 31 March 2011

Audited Budget AuditedY-on-Y

VarR 000 R 000 R 000 % R 000 %

Income 35,314 35,314 0 0% 37,964 -7%

Operating expenditure 32,229 35,314 (3,085) -9% 34,899 -8%Staff expenses 20,693 22,827 (2,134) -9% 18,345 13%General expenses 11,536 12,487 (951) -8% 16,555 -30%

Operating surplus 3,085 0 3,085 3,064 1%Finance income 22 0 22 6 253%Net surplus for the year 3,108 0 3,108 3,070 1%

2011 2010Act vs Bud Variance

STATEMENT OF FINANCIAL PERFORMANCE

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The OPFA’s Financial Performance

• The office received a qualified audit opinion (page 23)• Property, plant and equipment (page 36)• Irregular expenditure (page 42)• Fruitless and wasteful expenditure (page 42)

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Abridged statement of financial performance for the period ended 30 September 2011

15,174 18,290 (3,116) -17% 36,580 36,580 0 0%

16,230 19,815 (3,584) -18% 36,615 40,771 (4,156) -10%

Staff expenses 10,380 11,910 (1,530) -13% 22,683 26,066 (3,383) -13%

5,850 7,904 (2,054) -26% 13,932 14,705 (773) -5%

Operating (deficit)/surplus (1,057) (1,525) 468 -31% (35) (4,191) 4,157 -99%

105 78 27 34% 180 107 73 68%

Net (defict)/surplus for the period (952) (1,447) 495 -34% 145 (4,084) 4,230 -104%

STATEMENT OF FINANCIAL PERFORMANCE Year To Date 30 September 2011 Year Ended 31 March 2012Actual R 000

Budget R

Forecast R

Budget R

Operating expenditure

Income

Finance Income

Actual vs budget Variance %

Actual vs budget Variance %

General expenses

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Contact details

Tel/Reception: 087 942 2700 / 011 783 4134

Website: www.pfa.org.za

Email: enquiries@pfa.org.za

Questions?

2011.10.271212