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2008 IISA PROGRAMME IN
   RETIREMENT FUND
 MANAGEMENT (7151-X)


          SYLLABUS
(Purpose, Objective and Learning Outcomes)



              Offered by the

 Centre for Business Management
                    at

                 UNISA
            In association with

Insurance Institute of South Africa
    2008 IISA Programme in Retirement Fund Management (7151-X)

This programme is specifically aimed at people employed in the retirement fund and employee
benefits areas, either administrative or in an advisory role, irrespective as to the type of
company, pension fund administrators or pension funds.
The Programme is also supported and approved by the Institute of Retirement Funds and
successful students may apply for the Diploma in Retirement Fund Management.
The other programmes in insurance, offered by UNISA, Centre for Business Management are:
• 7149-8      IISA Programme in Short Term Insurance (NQF level 5)
• 7150-1      IISA Programme in Life Insurance (NQF level 5)
• 7152-8      IISA Programme in Life Insurance Servicing (NQF level 5)
• 7153-6      IISA Programme in Advanced Insurance Practice (NQF level 6)
NB Module PPRM01X is compulsory, while four other modules must be elected from the
remaining subjects in the Programme. It is also recommended that Module PPLI01-Q is
attempted first, as it provides a foundation for all the later modules in this programme.




PPRMO1X Legal Framework of Retirement Funds
The purpose this module is to equip students who are involved in the administration and
management of Retirement Funds with the necessary competencies (knowledge, values and
skills) to apply the fundamental legal concepts and principles applicable to and used in the
field of retirement funds.
When you have worked through this module you will be able to:
•   discuss the legal boundaries within which insurance business is conducted in terms of the basic
    requirements of applicable legislation, legal and tax systems and regulatory institutions;
•   explain the basic principles governing the formation of a valid contract in basic terms of the law of
    contract, the law of agency and the rights of third parties to contracts;
•   describe the role of the Pension Fund Act in governing Retirement Funds in terms of stipulations
    and regulations with regard to the registration, management, administration, benefits and
    investment structures of Retirement Funds;
•   explain the role and implications circulars and notes in the field of Retirement Funds in terms of
    Retirement Fund circulars, General Notices and Pension Fund circulars, where:
        Retirement Fund circulars implicate:
        • transfers from Pension to Provident Funds;
        • flexibility enjoyed by owners of flexible annuities;
        • funds for preservation of the retirement interest of employees;
        • 'late' withdrawal from pension funds and commutation of small annuities;
        Pension Fund circulars implicate on:
        • disclosure requirements;
        • Retirement Fund Administrators;
        • structure of a board of management of a fund;
        • the objects and rules of the board of pension funds;
•   describe the implications of related legislation in the governing of Retirement Funds in terms of
    stipulations and conditions bearing on the management and administration of Retirement Funds,
    including inter alia:
     • the FAIS Act;
     • the Labour Relations Act;
     • the Divorce Amendment Act;
     • the Maintenance of Surviving Spouses Act;
     • the Matrimonial Property Act;
     • the Long-term Insurance Act;
•   describe legislation governing the taxation of Funds and Fund benefits, Estates and inheritance and
    marital implications in terms of purpose and implications.



                                                                                     Continued overleaf

                                                   1
PPRM02Y Fund Administration
The purpose this module is to equip students who are involved or interested in the
administration of Retirement Funds, with the necessary competencies (knowledge, values and
skills) to be able to apply the fundamental concepts and principles applicable to the field of
Retirement Fund administration.
When you have worked through this module you will be able to:
•   distinguish between different types of Retirement Funds in accordance with Sect 2 of the Pension
    Funds Act and explain the registration procedures for setting up a Retirement Fund in terms of the
    legal framework of Retirement Funds, registration under the Pension Funds Act, rules of the fund,
    other required documentation apart from the rules, trust deeds and registration with the
    Commissioner for Inland Revenue;
•   discuss the statutory control of the administration of Retirement Funds in terms of the requirements
    and provisions stipulated by the Pension Funds Act and the Income Tax Act;
•   distinguish between the different role-players involved in the administration of Retirement Funds in
    relation to the:
     • duties and rights of employees, administrative tasks of employers;
     • role of the pension Funds Adjudicator;
     • duties of the management board, fiduciary duties of the trustee and duties of the Fund
         Administrator;
•   describe the audit and valuation requirements of the Registrar of Pension Funds with reference to
    the Fund accounts, accounting and reporting, financial assessment, statutory returns, actuarial
    investigations, the exempt status of a fund and reports to be submitted to the Financial Services
    Board or the exemption for the submission of such reports.




PPRM033 Benefit Design
The purpose this module is to equip students who are involved or interested in the structuring
of employee benefit programmes, more specifically those involved with retirement fund benefit
design, with the necessary competencies (knowledge, values and skills) to be able to apply
the fundamental concepts and principles applicable to the field of benefit design.
When you have worked through this module you will be able to:
•   compile notes on the development of employee benefits provided by businesses and the
    government, including:
     • a brief historical background of the development of employee benefits;
     • motivations for the development of employee benefits;
     • basic principles applicable to benefit design;
     • benefits provided by the government:
         • compensation for occupational injuries and deceases, unemployment insurance and social
            assistance;
•   explain the main considerations to be taken into account when establishing a Retirement Fund in
    terms of:
     • types of arrangement and the benefits they provide, guidelines and priorities in benefit design;
     • selecting service providers to assist in the provision of retirement benefits;
•   analyse the benefits provided by Retirement Funds in terms of normal retirement benefits, death
    and disability benefits and withdrawals from a fund;
•   discuss the issues relating to the amendment of retirement benefits in terms of the circumstances
    around the transfer of a group of members, the merger of funds, voluntary dissolution of funds and
    distribution of surpluses, and with due consideration of member’s rights, expectations and options.



PPRM044 Fund Financing
The purpose this module is to equip students who are involved or interested in the funding and
valuing of Retirement Funds, with the necessary competencies (knowledge, values and skills)
to apply the fundamental concepts and principles applicable to the field of Retirement Fund
funding and valuing.

                                                                                     Continued overleaf

                                                   2
When you have worked through this module you will be able to:
•   discuss the principles of funding a Retirement Fund in terms of:
     • the impact of social behaviours;
     • advance funding requirements;
     • funding methods;
     • the different bases of funding;
     • the pace of funding;
•   explain the statutory requirements of funding a Retirement Fund with reference to:
     • the role of regulatory authorities;
     • the management of a fund’s deficits or surpluses;
     • annual reports of Retirement Funds;
     as stipulated by the Financial Services Board Circular PF66 and further amendments thereof;
     • explain the basic valuation of a Retirement Fund in terms of:
     • the distinguish between types of Retirement Funds;
     • the assumptions underlying the valuation process;
     • valuation methods;
     • the valuation of assets and liabilities;
•    describe the content of valuation reports based on:
     • the minimum requirements of the report;
     • the role and responsibilities of the trustees using the report;
     • the valuation balance sheet.


PPRM055 Investment Management
The purpose this module is to equip students who need to advise clients or manage the
investment policy of clients, including funds, with the necessary competencies (knowledge,
values and skills) to be able to apply investment management principles and techniques to
manage long-term investment portfolios in the life insurance and fund management industry.
When you have worked through this module you will be able to:
•   formulate a basic investment strategy with due consideration to:
     • sound investment principles and philosophies;
     • basic economic indicators;
     • investor risk/reward profiles;
•   explain the basic management of long-term investment funds in terms of:
     • the basic design of long-term investment funds;
     • the composition of the management team responsible for the fund;
     • factors affecting the degree of management freedom;
     • portfolio design and construction;
     • the legislative environment;
•   identify, value and select investment alternatives available to South African insurance companies
    and retirement funds from the following markets:
     • equity market, money market, capital market, property market, derivative market;
     • off-shore market;
     • collective investment market;
•   compare the performance of long-term investment funds in terms of:
     • rate of return, volatility of returns, the size of the fund and benchmarking alternatives.




       Please do not hesitate to request further information from:
                    Postal Address                            Contact Details
         Insurance Programmes                     Tel:          (+2712) 429 4037
         Centre for Business Management           Fax:          086 693 7433
         P O Box 392                              Email:        iisa@unisa.ac.za
         UNISA                                    Web site:      www.unisa.ac.za/iisa
         0003

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