A pension fund administrator (PFA) is a company licensed by the National Pension Commission to carry out business of managing and investing pension funds of employees.
Functions of Pension Fund Administrators
Functions of pension fund administrators include:
- To open Retirement Savings Account (RSA) for employees
- Invest and mange pension funds assets
- Payment of retirement benefits to retirees and pensioners
- Giving proper accounts of all transactions relating to the pension funds under their custody.
We have compiled the list of top pension managers in South Africa
Read also: Top 10 Insurance Companies in South Africa
Best Pension Funds Companies in South Africa
Best pension managers in South Africa include:
- Government Employees Pension Funds
- GQM Fund Administrators (Pty) Ltd
- Momentum Retirement Administrators
- Metal Industries Benefits Fund Administrators
- Momentum Medical Scheme Administrators
- MULTILECT Administrators
Government Employees Pension Funds
The Government Employees Pension Fund (GEPF) is South Africa’s and indeed Africa's largest pension fund mangers, and boast of R1.61 trillion in assets, R484 billion investments income. GEPF is a benefit person fund, established in 1996 by Government Employees Pension Law (GEP Law) to manage and adjuster pensions and other benefits for government employees in South Africa. GEPF has over 1.2 members, and more than 450,000 pensioners and beneficiaries.
Website: gepf.co.za
Metal Industries Benefits Funds Administrators
It is a pension company that manages and invests pension funds of metal and allied industries employees.
Address: 42 Anderson Street, Marshalltown Johannesburg, 2107 South Africa
Tele: 011 870 2000
Momentum Retirement Administrators
Mementum Retirement Administrators is one of the best pension fund managers in South Africa. Its services include Retirement Savings Account (RSA) management, life and medical insurance covers, real estate benefits, savings and investments, etc
Address: 268 West Avenue, Centurion, 0157 South Africa
Tele: 27 12 671 8911
Website: momentum.co.za
GQM Fund Administrators (Pty) Ltd
Address: 76 Concorde E Road, Bedfordview, Germiston, 2008 South Africa
Tele: 011 450 3088
Momentum Medical Scheme Administrators (Pty) Ltd
It is subsidiary of Momentum Retirement Administrators Ltd. It provides healthcare insurance covers.
Address: Blackburn Estate, Blackburn South Africa
Tele: 031 573 400
Multilect Administrators
MULTILECT Administrators is a retirement funds administrators based in Johannesburg, South Africa. It services include retirement annuity funds, retirement benefits, living annuity, retirement provident/pension fund, etc. Founded in 1991, Multilect is administrators of boutique retirement packages.
Address: 191 Jan Smuts Avenue, Rosebank, Johannesburg, 2193 South Africa
Tele: 086 116 8584
Website: multilect.co.za
How Does Pension Fund Work?
Pension administrators open contributory pension account for employees where the employees make monthly contributions into their account as a form of savings towards their retirement, know as retirement savings account. The pension administrators are responsible for the day-to-day administration and management of pension schemes, and in some cases like insurance policies. They ensure new and existing members pension accounts and insurance polices are accurately managed.
The contributions made by customers are invested in profit yielding ventures such in money market and capital market instruments and securities in accordance with regulatory guidelines prescribed by pension commission.
Pension fund are usually largest invest pools in many countries. They are the key shareholders in the stock markets where major fraction of pension funds are invested. Pension funds administrators, insurance companies and investment trusts form institutional investor sector of most economies. Governments prioritize borrowing from pension funds in their domestic debt portfolio.
Pension funds are the largest investment blocks in most countries and dominate the stock markets where they invest. When managed by professional fund managers, they constitute the institutional investor sector along with insurance companies and investment trusts.
How to Change Your Pension Bank Account
Banks have a designated link banks that processes pension. If you want to change your paying bank in the same location or to ask for payments be made to a bank in another location, the pensioner needs to send a written application, attested by the former bank’s manager to the new one.
Largest Pension Administrator in South Africa
The Government Employees Pension Funds is the largest in South Africa and in the whole of Africa.
Read also: Top 18 Investment Banks in South Africa