New trustees for non-compliant funds

Johannesburg - The Financial Services Board (FSB) has taken regulatory action by appointing a board of trustees for the Electrical Contracting Industry Pension Fund and the Electrical Contracting Industry Provident Fund.

"The funds were not compliant," deputy registrar of pension funds at the FSB Jurgen Boyd said in a statement on Thursday.

The FSB's actions came after investigations in terms of Section 25 of the Pension Funds Act were conducted on the funds, which showed that the boards were not properly constituted as the rules of the funds required.

In terms of Section 26(2) of the Pension Funds Act, the registrar then gave the funds 90 days to establish a board of management in terms of their rules.

"No proper and validly constituted boards were appointed by the funds during the 90-day period.

"As such, and in order to ensure the proper functioning of the funds in the best interest of the members, the registrar is appointing a new board of management for each of the funds," Boyd said.

The FSB has appointed Bertie van Wyk to serve as independent trustee and chairperson of the new board of management on both funds.

Karen Mackenzie has been appointed as the other independent trustee and vice-chairperson of both funds.

"A further two trustees will be appointed from the ranks of the employer association and union.

"The boards appointed by the registrar will hold office until January 31 2011," Boyd said.

Earlier this year, the FSB called for individuals with the relevant knowledge and experience of pension funds to serve on a panel of independent trustees for possible appointment to retirement funds where regulatory action was necessary.

"Van Wyk and Mackenzie were drawn from that panel," Boyd said.

  - Sapa