Affordability restricts growth

Affordability is a very real limiting factor restricting the potential growth in the number of covered lives – members and their beneficiaries – in the private sector. Crucial here is the balance schemes need to achieve between high contribution increases, that are primarily driven by escalating hospital and specialists’ charges and maintaining competitive options so […]

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Employers must take some responsibility for employee financial wellbeing

“Consumers have become increasingly debt-stressed and financially vulnerable in recent months” says Paul Slot, Director of Octogen, personal finance wellbeing and debt counsellor specialists. “Bad debts and arrears have reached all time highs, consumers are depleting their savings and cancelling policies, and with over 900 000 South Africans having lost their jobs in the recession, […]

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What a basic employee benefits package comprises

Attracting and retaining competent staff in a competitive employment market may be one of the most challenging problems facing any employer. If designed correctly, an employee benefit scheme can be a powerful tool in achieving this objective. A well structured benefit scheme will consist of: • Retirement benefits in the form of contributions towards either […]

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Small and medium employers should consider moving into umbrella funds as cost can seriously erode returns in the current market

While more than 80 percent of retirement have less than 100 members the cost of managing these funds (per member) can be 10 times higher than says a fund with 500 members. The reason is pretty simple: while small funds may be easier to manage, diseconomies of scale attract higher consulting and administration fees per […]

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Umbrella Funds, Saving For Retirement

UMBRELLA FUNDS – LOWER COSTS, LOWER RISKS Opinion piece by Hugh Hacking, Umbrella Fund Product Manager at Old Mutual Corporate (photo) 5 February 2010: With South Africa’s businesses emerging from the recent difficult economic environment, now is an opportune time for companies to review their operations in order to identify ways of achieving greater sustainable […]

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The new generation individual member investment choice

The move from defined benefit to defined contribution retirement funds has shifted the risk of inadequate retirement provision from employers to the members. It has also seen the subsequent evolvement of individual member investment choice within retirement funds. However, the fact remains that high-income earning members are generally financially literate, demand greater control of their […]

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Talks On Pensions Sector Alignments In Africa

African pension fund leaders gather in SA in April to explore a broad, joint agenda of co-operation and possible alignments on mutual challenges facing private pensions sectors. The African delegation, representing the Committee of Insurance, Securities and Non banking financial Authorities (CISNA), will meet, among others, the secretariat of the Financial Services Board (FSB) and […]

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New Legislation Makes Business Travel Allowances not Worthwhile

New legislation effective 1 March 2010, involving major changes to business travel rules, will make the payment of a travel allowance no longer worthwhile. This is according to Ron Warren, an acknowledged tax expert and Chairman of local payroll services company nuQ, who says that the percentage of a travel allowance to be subjected to […]

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Employers and Employees Take Wait-and-See Approach to Retirement

Neither Side is Managing Retirement Risk Properly A 2009 Benefits & Talent global survey by Aon Consulting has shown that many employees are waiting for an economic recovery before moving forward with retirement and employers are taking the same attitude with retirement program changes and risk issues. The survey found that a significant proportion of […]

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Tax benefit makes budgeting easy

In response to the latest budget speech, Paper to Digital Storage Solutions (P2D) has introduced a cost effective solution that is 100 percent tax deductable. The all-in-one document management solution enables companies to convert paper-based documents into tamperproof electronic documents, making them accessible from anywhere across the globe. The Company’s CEO Dawid Jacobs says P2D […]

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