PPF Diaspora III London


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Courtesy of PPF as presented at Diaspora III Conference In London May 2011 Edition.

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PPF Diaspora III London

  1. 2. Introduction The Parastatal Pensions Fund was established under Section 6 (1) of the Parastatal Organizations Pensions Scheme Act (CAP 372 R.E. 2002). The Fund was established in July 1978.
  2. 3. Introduction (Cont.) <ul><li>The Fund is contributory and operates two different schemes i.e. </li></ul><ul><li>1. Traditional pension scheme under Defined Benefits ( DB ) System , </li></ul><ul><li>2. Deposit Administration scheme under Defined Contribution ( DC ) System . </li></ul><ul><li>The presentation will highlight PPF operations in general and provision of quality customer service . </li></ul>
  3. 4. PPF Vision and Mission Statements Vision: “ The Fund is desirous of freeing members from hardships arising out of loss of income due to old age, disability, death and the related risks”
  4. 5. Mission: “ The Fund is committed at providing quality pensions and allied benefits to members from both formal and informal sectors through utilization of dedicated human resources and modern technology with high degree of accuracy and promptness &quot;
  5. 6. Major Functions of the Fund <ul><li>To register members </li></ul><ul><li>To collect members’ contributions </li></ul><ul><li>To invest the contributions </li></ul><ul><li>To pay benefits as per the PPF Act </li></ul>
  6. 7. Circle of Funds Operations Funds Operations of Prudent Investments Quality Service Provision Benefit Payments Income /Contributions Member Recruitment Collection
  7. 8. Investment Policy <ul><li>The Fund has the investment policy which guides the management with regards to all investment activities of the Fund. The guiding principles are as follows; </li></ul><ul><ul><li>Safety (invest in portfolio which guarantee security of Fund’s resources) </li></ul></ul><ul><ul><li>Liquidity (Ability to meet our financial obligation) </li></ul></ul><ul><ul><li>Yield (commit resource to high yielding investment i.e above inflation rate) </li></ul></ul><ul><ul><li>Social, Environmental and Economic utility </li></ul></ul><ul><ul><li>Diversification (avoid overconcentration of asset to specific issuer, Class so as to spread risk ) </li></ul></ul>
  8. 9. Investment Category S/N Assets Allocation (%) Actual:31 ST December 2011 1. Fixed Income Asset 35-80 70.3% 2. Equities 10-30 13.3% 3. Properties 5-30 10.2% 4. Licensed Collective Scheme 0-10 6.2%
  9. 10. Coverage and Membership <ul><li>Employers: </li></ul><ul><ul><li>Parastatal organizations/ Public institions </li></ul></ul><ul><ul><li>Any private Companies </li></ul></ul><ul><ul><li>Restructured parastatal organizations </li></ul></ul>
  10. 11. Coverage and Membership (cont.) <ul><li>2. Employees: </li></ul><ul><ul><li>Permanent and pensionable </li></ul></ul><ul><ul><li>Non – pensionable </li></ul></ul><ul><ul><li>On contract or temporary terms </li></ul></ul><ul><ul><li>Re-employed after retrenchment </li></ul></ul><ul><ul><li>Who are PPF members – transferred, moves or resigns to join another employer </li></ul></ul>
  11. 12. Membership Trend 2002 – Dec 2010 Year Total Membership (no.) % Increase (Decrease) 2003 51,000 (9.8) 2004 52,933 3.8 2005 56,644 6.6 2006 67,087 18.4 2007 84,186 13.6 2008 104,684 24 2009 132,878 12 2010 160,068 20.5
  12. 13. Remittance of Contributions <ul><li>Both schemes are contributory </li></ul><ul><li>Employee and employer contribute to the </li></ul><ul><li>Fund a total of 20% from the respective employee monthly salary, i.e. </li></ul><ul><li>1. 5% for employee and 15% for </li></ul><ul><li>employer, or </li></ul><ul><li>2. 10% for employee and 10% for </li></ul><ul><li>employer </li></ul><ul><li>3. The employer has the responsibility of </li></ul><ul><li>remitting the contributions </li></ul>
  13. 14. Remittance of Contributions <ul><li>Both the member and employer </li></ul><ul><li>contributions shall be remitted to the Fund </li></ul><ul><li>within 30 days after the end of each month S 8 (3) </li></ul><ul><li>Remittance can be done through Bank deposits, TISS, TT, Cheque and Cash. </li></ul><ul><li>Contribution schedules must be submitted with proof of payment ( it is preferred that schedules are submitted electronically) . </li></ul>
  14. 15. What is the impact of delayed Contributions?  Short payment for periods with contributions lapses  Penalty or addition contribution of 5% compounded monthly  Loss of investment income, hence inadequate funding for benefit payment  Bad reputation for the Fund and employer  Member complaints
  15. 16. PPF Benefits Survivor’s Benefits Sickness/Disability Benefits Withdrawal Benefit Deposit Administration Old Age Benefit Death Benefit Education Benefit Gratuity Benefit
  16. 17. Education Benefit This is granted to a member who dies whilst in service. It is granted to not more than 4 children of the deceased member from nursery school to ordinary secondary education. Each child is granted an amount not exceeding 1/12 of the deceased APE. As of July 2010 the Fund pays Education benefit to more than 1000 children.
  17. 18. Growth of the Fund (figures in millions) 16.5%
  18. 19. <ul><li>This scheme has dual purposes: can either be a mandatory and basic scheme or supplementary scheme. </li></ul><ul><li>Benefits under this scheme are granted to members from the accumulated contributions and the accrued interest. </li></ul><ul><li>Through this scheme the Fund manages various employers’ in house schemes. As a supplementary scheme it also enables the Fund to design systems/ operations in accordance to requirements and needs of a specific member. </li></ul>Deposit Administration Scheme (DAS)
  19. 20. Quality Customer Services Quality customer service is an integral part of our business. Therefore, the Fund is committed at delivering both effective and efficient service which recognizes and values the importance of our customers. The Fund is guided by its Customer care Policy and Customer Care Charter
  20. 21. Quality Customer Services <ul><li>The Fund is highly committed to usage of ICT as a business enabler on its operations. The following key operations are all automated: </li></ul><ul><li>Registration processes of both employee and employer. </li></ul><ul><li>Allocation of the collected contributions to specific members. </li></ul>
  21. 22. Quality Customer Services <ul><li>Payment of benefits </li></ul><ul><li>The CRM System </li></ul><ul><li>PPF Taarifa </li></ul>
  22. 23. PPF TAARIFA
  23. 24. PPF TAARIFA <ul><li>SMS </li></ul><ul><li>Michango </li></ul><ul><li>Dai </li></ul><ul><li>Pensheni </li></ul><ul><li>15553 33 </li></ul><ul><li>Website </li></ul><ul><li>www.ppftz.org </li></ul>
  24. 25. THANK YOU