They play an important social role in Southern Africa, particularly for single-parent and child-led households, allowing minor children to stand a better chance of completing their education if their assets are managed in a beneficiary fund vehicle which is protected under the Pension Funds Act and overseen by a board of trustees.
Traditionally, beneficiary funds were regarded as a vehicle for children's assets but the concept has evolved to become more relevant and attractive to a broader market from a tax savings point of view.
[4][7] Treating Customers Fairly (TCF)[7] is becoming more central to the legislation governing retirement funds particularly as incorporated into the Conduct of Financial Institutions Bill (COFI).
Major service providers include institutions such Sanlam, Alexander Forbes Group Holdings and independent player Fairheads.
This section allows trustees of retirement funds to make decisions regarding the allocation of the death benefits.