Fund Update

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During the last year the Road Freight and Logistics Industry Provident Fund (RFLIPF) has made great strides in improving benefits and services to members of the Fund.

The Fund has assets of R3.2 billion and bonuses of 18.7% were allocated to members over the last two years. Funeral benefits for members were improved without an increase in premiums.

The data reconstruction project was finalised and Sanlam were appointed to provide Front Office services to the Fund. The Sanlam Call Centre receives about 1600 calls per month from members of the Fund, as can be seen from the table below.

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Table

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On a monthly basis, a percentage of the employer’s contribution is deducted to cover risk premiums (death, disability and funeral) as well as other Fund expenses and costs. Funds have recurring expenses that must be paid on a monthly basis, such as:

• Consulting fees
• Administration fees
• Actuarial fees
• Audit fees
• Financial Services Board fees
• Investment fees
• Other miscellaneous fees (e.g. costs of member communication material)

The Fund benchmarked its cost structure and it compares very favourably with other large industry funds. The costs are deducted from the employer’s contribution.

The Fund costs amount to approximately 3.9% of the members’ salary. This means if a member is earning R5000 per month – the cost would be R195 which would be deducted from the employer’s contribution of R500 to the Fund.

It should be noted that due to fluctuating membership numbers, the costs of the Fund can fluctuate on a monthly basis, and although the Rules of the Fund state that up to 80% of the employer contribution can be used for costs – the current costs are much lower than this.

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All active members of the Fund and their immediate family members are covered by this benefit until retirement age. Part of the employer monthly contributions pay for this benefit.
This benefit covers up to 6 registered spouses and up to 6 children.
If the member exists the Fund they will no longer be covered by or be able to claim for funeral benefits.

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Funeral Benefits Schedule
Funeral benefit for Members and their immediate family members, as of 01 March 2013.

 

FuneralGraphic Vectors_fromAI

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