Correctional Services said that “matters are under control” at Johannesburg’s Sun City Prison on Wed.
Many employers are burdened by the administrative and regulatory requirements of managing a retirement fund on behalf of their employees when they would rather be focusing on their core business.
There is actually a solution to this problem, says John Lomberg, key account manager of Old Mutual Corporate.
"Umbrella funds, also known as multi-employer funds, are retirement funds to which multiple employers can belong. These funds allow employers to outsource the management and administration functions of the fund to companies such as Old Mutual," he said.
The big benefit is that employers simply "plug in" to an existing management and administration platform, which provides all the services to the employees on behalf of the employer.
Lomberg said other important benefits of an umbrella fund to the employer are that it gives the employer peace of mind that the fund is run by professional and dedicated trustees, and that it adheres to the regulatory requirements of the Pension Funds Act.
For the employee, there are also advantages to belong to an umbrella fund - the cost a employee should generally be lower because administration costs are shared, Lomberg said.