Managing Defined Contribution Plans Training Course

In South Africa, defined contribution pension and provident funds are regulated primarily under the Pension Funds Act and supervised by the Financial Sector Conduct Authority, with the Prudential Authority focusing on prudential supervision of certain financial institutions. Trustees must comply with conduct standards, governance requirements, and disclosure obligations, while ensuring that fund rules and practices align with Treating Customers Fairly principles. This training helps participants understand how to embed these regulatory expectations into everyday governance and administration.

Umbrella funds are multi-employer retirement funds that can simplify governance and administration for employers running defined contribution arrangements. However, participating employers and their appointed representatives still retain important responsibilities around selecting an appropriate umbrella fund, reviewing default investment strategies and fees, and monitoring member outcomes. The course provides frameworks to assess umbrella offerings, negotiate services and costs, and oversee the fund’s governance on an ongoing basis.

South African retirement funds are generally permitted to incorporate environmental, social and governance considerations into their investment strategies, provided these decisions are consistent with their fiduciary duties and the best interests of members. Trustees can work with asset managers to select ESG-integrated or sustainable funds within the investment menu, document their approach in the Investment Policy Statement, and ensure that risk and return objectives remain appropriate. The training explains how to evaluate ESG options, engage managers, and communicate these choices transparently to members.

For defined contribution arrangements, major fiduciary risks include poorly designed default investment strategies, opaque or excessive fees, weak oversight of service providers, and inadequate communication that leaves members ill‑equipped to make decisions. Trustees and sponsors must ensure robust governance processes, regular performance and fee reviews, and clear member disclosures that support informed choices. The course equips participants with practical tools like governance checklists, fee benchmarking approaches, and compliance calendars to reduce these risks.

AI-driven analytics and personalised modelling can support retirement planning by providing members with projections, risk profiling, and tailored nudges, but they must operate within South African regulatory requirements around advice, disclosure, and data protection. Trustees and sponsors need to ensure that such tools are transparent, appropriately governed, and clearly positioned as guidance or advice in line with applicable financial sector and data privacy rules. The training outlines governance questions to ask vendors, how to document assumptions in the Investment Policy Statement, and ways to monitor outcomes so these tools enhance rather than undermine fiduciary responsibilities.