MetEB administered fund - THACSA - proves effective member communication is key

Tourism, Hospitality and Catering Pension Fund (THACSA) scoops IRF Communication Award

The Tourism, Hospitality and Catering Pension Fund (THACSA) recently received a Special Recognition Award at this year’s Institute of Retirement Funds annual conference in Durban for best practice in training and engagement with organised labour.

Over the past few years industry architects have been grappling with financial literacy and empowering retirement fund members to take a more proactive stance in managing their pension fund. As part of its solution, the Financial Services Board introduced robust guidelines for member communications in pension circular PF130 - which lays the basic tenets for effective membercommunication.

Andy Nold Chairman of THACSA says the fund is proud of the award, and sees improving member communication as an on-going priority. He says the tourism and hospitality industry has to prioritise improving employee benefits as a way to attract and retain skills in the sector. He believes that this is a vital precursor for sustainable growth in South African tourism.

Renier Grosch, service consultant at Metropolitan Employee benefits says, " there is no point offering a wide array of services and benefits if members do not understand them and make use of them. The most effective way we’ve found of engaging and empowering members is through workshops aimed at shop stewards".

These workshops hosted by MetEB staff members Renier Grosch and Robert Mkabelana have become vital forums where members feel comfortable addressing issues relating to their pension fund.

“Pension benefits, retirement planning are somewhat abstract concepts for many people – irrespective of their educational background. In our workshops we are able to fully explore some of the terminology, concepts and responsibilities that can be confusing for members,” adds Renier Grosch.

Clinton Prins, brand manager at the fund’s administrator Metropolitan Employee Benefits (MetEB) says effective communications which promotes financial literacy to members is a key issue for the company - and the industry at large.

MetEB statistics reveal, for example, that funds with individual member choice (that is when funds offer members the opportunity to choose the underlying investment for their fund) is not utilised by members. “In fact 80% of members do not exercise this option. The likely reason is that they are either apathetic towards their retirement, or they simply do not understand the options and the consequences,” says Prins. Either way pension funds and their administrators have a key role to play in educating members and to help demystify retirement provision.

Circular PF130 goes some way toward providing a solid framework for member communications. It also recognises that in addition to full transparent disclosure to members, fund communications must be structured to reflect member needs.

THACSA has established a sub-committee focused on member communications and it has been responsible for a number of innovations. The Fund has produced its annual newsletter in Afrikaans, English and Xhosa for several years now. In addition, the fund's website http://www.thacsa.co.za/ is arepository for information about how the fund works, who to contact forassistanceand detailed information about the member's fund. The fund is currently working on upgrading the site, which will shortly givemembersthe ability to interact with the fund and access real-time fund-values with a click of the mouse,

Core messages of this year’s communication programme included advising members of the website, helping members better understand their benefits and the importance of preservation of benefits.