Metropolitan consortium secures retirement fund administration contracts

Metropolitan consortium secures major new retirement fund administration contracts

A consortium led by Metropolitan Employee Benefits has been appointed to administer the Transnet Retirement Fund, the Transnet Pension Fund and the Transnet Second Defined Benefit Pension Fund.

The consortium, comprising Metropolitan and Kagiso Trust Investments, also purchased the assets and will employ the staff of Transnet Pension Fund Administrators (TPFA), a division of Transnet Limited. TPFA will be housed in a newly formed group subsidiary to be known as Metropolitan Retirement Fund Administrators.

All of the aforementioned is subject to regulatory approval which, if obtained, is expected to enable implementation from April next year.

Collectively, the Transnet funds have approximately 70 000 active members and 85 000 pensioners.

Wilhelm van Zyl, chief executive of Metropolitan Employee Benefits, says "This is an extremely exciting opportunity for Metropolitan in an industry where economies of scale and reduced unit costs are becoming increasingly important. The new business is particularly well positioned to succeed in a reforming retirement fund industry where both governance and the quality and cost of administration are key success factors."

As Van Zyl points out Metropolitan Retirement Fund Administrators will have the critical mass and the credentials as well as the infrastructure to provide top quality administration services to retirement funds across South Africa.