BENCHMARK: new name for SA retirement fund industry’s leading survey, event

In advance of its annual study Sanlam Employee Benefits releases select qualitative research findings

After 29 years of setting the standard for research regarding South Africa’s retirement fund sector, Sanlam Employee Benefits today introduced BENCHMARK as the new name for its annual study and symposium. As a precursor to the official launch of its annual survey results in July, the employee benefits arm of Sanlam has revealed a selection of qualitative research findings that have helped to guide the focus of its 2009 quantitative research.

“Our annual survey is the yardstick to measure and examine the progress, perceptions and problems facing South Africa’s retirement fund industry,” said Paul Myeza (pictured), CEO of Sanlam Employee Benefits. “BENCHMARK represents the value, insights and authoritativeness afforded to our research and the fact that we host the most anticipated event in the South African retirement fund industry calendar.”

The 2009 BENCHMARK SURVEY™ will be officially presented by Sanlam Employee Benefits at the BENCHMARK SYMPOSIUM™ to be held in July in Johannesburg and Cape Town. Details about the dates and times of the invite-only event, including the keynote speaker, will be announced shortly.

Proprietary qualitative results

From November 21, 2008 to January 9, 2009, Sanlam Employee Benefits investigated recent and current trends and developments shaping the retirement fund industry based on 40 one-hour, face-to-face interviews in Cape Town, Johannesburg and Durban with financial intermediaries consulting to retirement funds, employers belonging to umbrella funds, principal officers and trustees.

“The qualitative research largely confirmed that issues to be revealed in our publicly available quantitative survey are relevant; including the growth in umbrella funds and the changing profile of participating employers,” added Myeza. “As a first for us, the results of this proprietary study underpin how the industry is coming to terms with legislation and guidelines to encourage better fund governance and accountability.”

Some of the highlights of Sanlam Employee Benefits’ qualitative research show:

• Members are becoming more actively involved in their retirement funds and funds are, in turn, communicating more regularly and transparently with member updates, statements and face-to-face meetings, as well as educating members via the Internet, company intranets, road shows and seminars;
• Uncertainty and apprehension about the government’s proposed national social security system due to limited communication and the deadline for implementation being pushed out;
• Amongst employers currently participating in umbrella arrangements, most switched from an employer based fund to outsource trusteeship responsibility and improve their administration efficiency;
• About a third of employer based funds interviewed have investigated umbrella arrangements; and
• Respondents indicated that some of the benefits realised under umbrella fund arrangements include good value for money, maximised member benefits, access to a wider range of investments and the reassurance of independence and expertise.

“Our proprietary qualitative research also reveals a few ‘hot topics’ that we hope will form the focus of discussion and debate at the BENCHMARK 2009 Symposium,” concluded Myeza.

The BENCHMARK SYMPOSIUM is considered a must-attend event for intermediaries, principal officers, trustees, service providers, asset managers, government department officials and union representatives. The BENCHMARK SURVEY is the most comprehensive and respected survey of South Africa’s retirement fund industry, providing relevant statistics and insights into the management of pension, provident and umbrella funds.

Conducted on behalf of Sanlam Employee Benefits by an independent market research agency, the BENCHMARK SURVEY includes face-to-face interviews with 200 principal officers of stand-alone retirement funds and 100 participating employers in umbrella arrangements across a variety of sectors, ranging in size from small (less than 100 members) to very large (more than 5 001 members). Since 2008, the study has been augmented by a complementary survey of retirement fund members. Performed according to the South African Marketing Research Association Code of Conduct, the study serves as an authoritative reference manual and guide to the South African retirement fund industry.