SAQA

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SOUTH AFRICAN QUALIFICATIONS AUTHORITY

REGISTERED UNIT STANDARD THAT HAS PASSED THE END DATE:

Demonstrate knowledge and understanding of the Primary legislation that impacts on retirement funds

SAQA US ID	UNIT STANDARD TITLE
10393	Demonstrate knowledge and understanding of the Primary legislation that impacts on retirement funds
ORIGINATOR
SGB Financial Services
PRIMARY OR DELEGATED QUALITY ASSURANCE FUNCTIONARY
-
FIELD			SUBFIELD
Field 03 - Business, Commerce and Management Studies			Finance, Economics and Accounting
ABET BAND	UNIT STANDARD TYPE	PRE-2009 NQF LEVEL	NQF LEVEL	CREDITS
Undefined	Regular	Level 4	NQF Level 04	2
REGISTRATION STATUS		REGISTRATION START DATE	REGISTRATION END DATE	SAQA DECISION NUMBER
Passed the End Date - Status was "Registered"		2002-06-12	2004-12-02	SAQA 0742/02
LAST DATE FOR ENROLMENT		LAST DATE FOR ACHIEVEMENT
2005-12-02		2008-12-02

In all of the tables in this document, both the pre-2009 NQF Level and the NQF Level is shown. In the text (purpose statements, qualification rules, etc), any references to NQF Levels are to the pre-2009 levels unless specifically stated otherwise.

This unit standard is replaced by:

US ID	Unit Standard Title	Pre-2009 NQF Level	NQF Level	Credits	Replacement Status
117120	Analyse the Pension Funds Act as it applies to the administration of retirement funds	Level 4	NQF Level 04	3

PURPOSE OF THE UNIT STANDARD

This unit standard is intended for learners in the insurance retirement fund industry who work in Employee or Group Benefits, Trustees and other interested parties.

The qualifying learner is capable of:

Identifying the funds to which the Pension Funds Act (24 of 1956) as amended applies.

Explaining the sections of the Pension Funds Act (24 of 1956) as amended that apply to governance.

Explaining the sections of the Pension Funds Act (24 of 1956) as amended that apply to financial matters.

Explaining the sections of the Pension Funds Act (24 of 1956) as amended that apply to benefits and allowable deductions.

Applying Income Tax legislation to pension and provident funds.

LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING

There is open access to this unit standard. Learners should be competent in Communication, Mathematical and Financial Literacy at Level 3.

UNIT STANDARD RANGE

The typical scope of this unit standard is

The Pension Funds Act (24 of 1956) as amended, the Tax on Retirement Funds Act and the Income Tax Act 58 of 1962 as amended.

Tax legislation includes the Income Tax Act and the Tax on Retirement Funds Act.

Payment of death benefits includes payments to nominees only, dependants only, dependants and nominees and neither dependants nor nominees.

Taxation of benefits as applied to resignation, retirement, death and transfer.

Specific Outcomes and Assessment Criteria:

SPECIFIC OUTCOME 1

Identify the funds to which the Pension Funds Act applies.

ASSESSMENT CRITERIA

ASSESSMENT CRITERION 1

1. The reasons for the Act are explained with reference to the objectives defined in the Act.

ASSESSMENT CRITERION 2

2. Circumstances under which a Fund would be required to register or be exempted from registration under this Act are named with examples.

ASSESSMENT CRITERION 3

3. The concept of an audit exempt fund is explained with reference to the assets of the fund.

ASSESSMENT CRITERION 4

4. The concept of a valuation exempt fund is explained with reference to the assets of the fund, actuarial evaluations and the annual audit.

ASSESSMENT CRITERION 5

5. The concept of a non-exempt fund is explained with reference to the assets of the fund, actuarial evaluations and the annual audit.

SPECIFIC OUTCOME 2

Explain the sections of the Pension Funds Act that relate to governance.

ASSESSMENT CRITERIA

ASSESSMENT CRITERION 1

1. Requirements regarding the constitution of the Board of Trustees are explained with reference to section 7A-7E and the duties and responsibilities of the Board.

ASSESSMENT CRITERION 2

2. The role of the Principal Officer is explained with reference to hisher duties.

ASSESSMENT CRITERION 3

3. The relationship between Pension Fund Circulars and the Pension Funds Act and accompanying regulations is explained with reference to the role of the Financial Services Board.

ASSESSMENT CRITERION 4

4. The role of the Pension Funds Adjudicator is explained and an indication is given of the impact of determinations on retirement funds.

ASSESSMENT CRITERION 5

5. Steps that Trustees are required to take to protect the fund against claims by the member are indicated with reference to negligent or incorrect decisions of the Trustees.

SPECIFIC OUTCOME 3

Explain sections of the Pension Funds Act that apply to the financial operation.

OUTCOME NOTES

Explain sections of the Pension Funds Act that apply to the financial operation and the flow of funds.

ASSESSMENT CRITERIA

ASSESSMENT CRITERION 1

1. Circumstances under which benefits should be protected are explained with reference with reference to section 14 of the Act.

ASSESSMENT CRITERION 2

2. Circumstances under which retirement funds may be liquidated are explained with reference to sections 28 and 29 of the Act.

ASSESSMENT CRITERION 3

3. Data required for the preparation of financial records required for the audit is prepared and an indication is given of the legal time frames for submission of the audit.

ASSESSMENT CRITERION 4

4. Circumstances under which a fund is subject to periodic valuations are explained with examples.

ASSESSMENT CRITERION 5

5. The responsibility of the employer to pay, and the consequences if an employer fails to pay pension fund contributions timeously are explained with reference to the roles of the employer, Trustee, Principal Officer, Attorney General, Financial Services Board, monitoring person and administrator.

SPECIFIC OUTCOME 4

Explain sections of the Pension Funds Act that apply to benefits and allowable deductions.

ASSESSMENT CRITERIA

ASSESSMENT CRITERION 1

1. Circumstances under which Trustees may authorise deductions from fund benefits are explained and an indication is given of the evidence required to substantiate the deduction.

ASSESSMENT CRITERION 2

2. Requirements of the Pension Fund Act regarding the payment of death benefits applicable to all funds are explained with reference to four case studies.

ASSESSMENT CRITERION 3

3. Conditions under which fund benefits may be ceded to a third party are explained in terms of the Maintenance Act, Divorce Act, and the Pension Funds Act.

ASSESSMENT CRITERION 4

4. The protection of fund benefits is explained with reference to the member's insolvency.

ASSESSMENT CRITERION 5

5. Examples of investment instruments that are available to funds are named as prescribed in Regulation 28.

SPECIFIC OUTCOME 5

Apply Tax Legislation to a pension fund and a provident fund.

ASSESSMENT CRITERIA

ASSESSMENT CRITERION 1

1. Requirements for the approval of a fund as a pension or provident fund are named with reference to the Income Tax Act as amended.

ASSESSMENT CRITERION 2

2. Schedule 2 of the Income Tax Act is applied to the taxation of fund benefits for three case studies.

ASSESSMENT CRITERION 3

3. The impact of taxation on the Taxation on Retirement Funds Act is explained with examples.

ASSESSMENT CRITERION 4

4. Circumstances under which a member may transfer his/her fund benefit to a preservation fund are analysed with reference to the rules of the fund and SARS retirement fund notes (RF1/98)

UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS

This unit standard will be internally assessed by the provider and moderated by a moderator registered by INSQA or a relevant accredited ETQA. The mechanisms and requirements for moderation are contained in the document obtainable from INSQA,
INSQA framework for assessment and moderation.

Critical Cross-field Outcomes (CCFO):

UNIT STANDARD CCFO COLLECTING

The learner is able to collect, organise and critically evaluate information relating to the Pension Funds Act (24 of 1956) as amended, the Tax on Retirement Funds Act and the Income Tax Act 58 of 1962 as amended.

UNIT STANDARD CCFO COMMUNICATING

The learner is able to communicate effectively in explaining the various sections of the legislation.

UNIT STANDARD NOTES

This unit standard has been replaced by 117120, which is ' Analyse the Pension Funds Act as it applies to the administration of retirement funds', Level 4, 3 Credits.

QUALIFICATIONS UTILISING THIS UNIT STANDARD:

	ID	QUALIFICATION TITLE	PRE-2009 NQF LEVEL	NQF LEVEL	STATUS	END DATE	PRIMARY OR DELEGATED QA FUNCTIONARY
Elective	48494	National Certificate: Financial Services Management	Level 3	NQF Level 03	Passed the End Date - Status was "Reregistered"	2012-06-30	INSETA
Elective	48640	National Certificate: Financial Services Management	Level 4	Level TBA: Pre-2009 was L4	Passed the End Date - Status was "Reregistered"	2023-06-30	INSETA
Elective	48493	National Certificate: Financial Services: Wealth Management	Level 4	NQF Level 04	Passed the End Date - Status was "Registered"	2007-02-11	Was INSETA until Last Date for Achievement
Elective	24396	National Certificate: Risk Management	Level 4	NQF Level 04	Passed the End Date - Status was "Registered"	2006-10-08	Was INSETA until Last Date for Achievement

PROVIDERS CURRENTLY ACCREDITED TO OFFER THIS UNIT STANDARD:

This information shows the current accreditations (i.e. those not past their accreditation end dates), and is the most complete record available to SAQA as of today. Some Primary or Delegated Quality Assurance Functionaries have a lag in their recording systems for provider accreditation, in turn leading to a lag in notifying SAQA of all the providers that they have accredited to offer qualifications and unit standards, as well as any extensions to accreditation end dates. The relevant Primary or Delegated Quality Assurance Functionary should be notified if a record appears to be missing from here.

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