Learner Name

ID Number
Organisation

FORMATIVE ASSESSMENT:
LEARNER WORK FILE VERSION 1
Unit Standard Title: Apply knowledge and insight to structure and
implement a retirement fund for an organisation

Unit Standard No: 242564

Unit Standard Credits: 8

NQF Level: 6

Mark information:
Specific
1 2 3 4 5 Total % C / NYC
Outcome/Section

Maximum marks 16 10 26 20 72 100

This outcomes-based learning material was developed by Masifunde Training Centre with funding from INSETA in July 2014.
The material is generic in nature and is intended to serve as a minimum standard for the industry.

This material may be used and copied for your own personal use. This material may not be republished, nor may it be reverse
engineered, translated, modified or used to make derivative information of materials without the express written permission of
INSETA which can be obtained by contacting insetacallcentre@inseta.org.za. Short excerpts from the material may be
reproduced without authorisation on condition that the source is indicated.
Disclaimer
Whilst every effort has been made to ensure that the learning material is accurate, INSETA and Masifunde Training Centre
(Pty) Ltd take no responsibility for any loss or damage suffered by any person as a result of the reliance upon the information
contained herein.
242564 Learner Work File Ver.1 1

Formative Activities

Section 1: 16 marks
In this activity, you will analyse the needs and motivation of an organisation in
establishing a retirement fund.

1. Using any organisation of your choice, you are required to analyse the needs and
motivation of that organisation in establishing a retirement fund. Use the following
guidelines:

Activity 1.1
Obtain the following information about the organisation:
 Salary range and structure
 Number of employees
 Industry
 Location
 Work profiles of employees,
 Average service period of an employee
 Labour agreements,
 Tax status
In less than a page compile a profile of the organisation. (8)

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Activity 1.2
Explain how the following affect a defined benefit or defined contribution fund (8)
i. Inflation
ii. Interest rates
iii. Job hopping
iv. High life expectancy

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242564 Learner Work File Ver.1 3

Module 2: 10 marks

In this activity, you will apply knowledge of legislation to determine the possible
structure of a fund.

2.1 You are to plan, prepare and conduct a 10 minutes presentation in the presence
of your peers and facilitator on the topic, application of legislation to determine the
possible structure of a fund. As you present ensure that you clearly explain;
 Identify legislation that impacts on the structure of a fund with reference to
how legislation determines the possible structure of a fund.
 Discuss the implications of potential changes in legislation for the structure of
a fund with reference to current information.

NOTE: The facilitator or assessor shall complete the following presentation and
facilitation skills assessment form as you present.

PRESENTATION AND FACILITATION SKILLS ASSESSMENT FORM

LEARNER: _________________________________________________

DATE: _______________________ TOTAL SCORED: _______/10

Delivered his/her instructional presentation according to the following criteria:

Mark questions in the following manner:

ITEM DESCRIPTION MARKS

1 PREPARATION
1.1 Research and gathering of relevant information

/2
2. INTRODUCTION
2.1 Gains attention properly
2.2 Gives brief overview and purpose of the presentation
/1
3. PRESENTATION
3.1 Gives clear explanation or demonstration
3.2 Actively involves learners
3.3 Allows for practice and application
/2

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242564 Learner Work File Ver.1 4

4. TECHNIQUES
4.1 Good flow and sequencing
4.2 Proper questioning and feedback
4.3 Appropriate integration of media
/2
5. CONCLUSION
5.1 Proper summary and consolidation
5.2 Evaluates for outcomes
5.3 Links with subsequent topic
/1
6 GENERAL
6.1 Proper time management
6.2 Body language
6.3 Relationship with learners
6.4 General atmosphere
/2
TOTAL

/10

General comments:

_____________________
Signature of the assessor

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242564 Learner Work File Ver.1 5

If you are not a facilitated learner, please give a written account of what you
would have said in the presentation.

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242564 Learner Work File Ver.1 6

Module 3: 26 marks
Activity 3.1
Refer to activity 1.1 and the current economic factors. What type of a Retirement
fund is best suited for the organisation? Would you recommend a defined benefit
(DB) or a defined contribution (DC) scheme to the organisation? (5)

Activity 3.2
Discuss the tax deductibility of contributions to pension and provident fund with
respect to: (4)
 Employee
 Employer

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Activity 3.3
Identify any 3 additional benefits offered by retirement funds that can be insured.
What are the advantages of insuring these benefits? (5)

Activity 3.4
Analyse your employment contract, discuss the implications of the labour relations
issues in your contract. (8)

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Activity 3.5
Which organisation is likely to outsource retirement fund administration? Name any
two advantages of outsourcing retirement administration. (4)

Module 4: 20 marks
Activity 4.1
Refer to activity 3.1. List any 8 rules of the fund you have chosen, i.e. pension or
provident fund. (8)

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Activity 4.2
An action plan is a crucial resource in implementing the retirement fund. Formulate a
general implementation plan for the fund you chose in activity 3.1. (8)

Activity 4.3

Identify any 2 role players involved in implementing the retirement Fund. Discuss
their roles. (4)

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All qualifications and part qualifications registered on the

National Qualifications Framework are public property. Thus
the only payment that can be made for them is for service and
reproduction. It is illegal to sell this material for profit. If the
material is reproduced or quoted, the South African
Qualifications Authority (SAQA) should be acknowledged as the
source.
SOUTH AFRICAN QUALIFICATIONS AUTHORITY
REGISTERED UNIT STANDARD:
Apply knowledge and insight to structure and implement a retirement fund for an
organisation
SAQA US UNIT STANDARD TITLE
ID
242564 Apply knowledge and insight to structure and implement a retirement
fund for an organisation
ORIGINATOR REGISTERING PROVIDER
SGB Insurance and
Investment
QUALITY ASSURING BODY
-
FIELD SUBFIELD
Field 03 - Business, Commerce and Finance, Economics and
Management Studies Accounting
ABET UNIT OLD NQF NEW NQF CREDITS
BAND STANDARD LEVEL LEVEL
TYPE
Undefined Regular Level 6 New Level 8
Assignment Pend.
REGISTRATION REGISTRATION REGISTRATION SAQA
STATUS START DATE END DATE DECISION
NUMBER
Reregistered 2009-11-03 2012-11-03 SAQA
0160/05
LAST DATE FOR LAST DATE FOR ACHIEVEMENT
ENROLMENT
2013-11-03 2016-11-03

In all of the tables in this document, both the old and the new NQF Levels are
shown. In the text (purpose statements, qualification rules, etc), any reference to
NQF Levels are to the old levels unless specifically stated otherwise.

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242564 Learner Work File Ver.1 11

This unit standard does not replace any other unit standard and is not replaced by
any other unit standard.

PURPOSE OF THE UNIT STANDARD

This Unit Standard is intended for learners who are involved in structuring
retirement funds for corporate clients. It will be useful for human resource
managers, financial directors and senior consultants.

The qualifying learner is capable of:

· Analysing the needs and motivation of an organisation in establishing a retirement

fund.
· Applying knowledge of legislation to determine the possible structure of a fund.
· Developing a proposal to meet the identified needs of a specific organisation.
· Designing an implementation plan.

LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF

PRIOR LEARNING
It is assumed that learners are competent in Communication and Mathematical
Literacy at NQF Level 4 and are working towards or have a Level 5 Financial
Services Qualification or equivalent.

UNIT STANDARD RANGE

The typical scope of this Unit Standard is:

· Human resources data includes, but is not limited to, salary range and structure,
number of employees, industry, location of employer (locally and offshore) work
profiles of employees, current retirement fund and labour agreements, special needs
and tax status of the employer.
· Economic and labour issues include, but are not limited to, proposed membership,
employee expectations, employer expectations, desired benefits and monetary
limits.
· Legislation includes, but is not limited to, Income Tax Act, Pension fund Act,
Labour Relations Act and the Financial Institutions Protection of Funds Act.
· Capacity refers to the administrator and/or the employer.
· Role players include actuaries, auditors, consultants and legal counsel.

Specific Outcomes and Assessment Criteria:

SPECIFIC OUTCOME 1
Analyse the needs and motivation of an organisation in establishing a retirement
fund.

ASSESSMENT CRITERIA

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ASSESSMENT CRITERION 1
Human Resources data is analysed in order to compile a profile of the organisation.

ASSESSMENT CRITERION 2
Economic and labour relations issues are analysed to determine the motivation for
the fund.

SPECIFIC OUTCOME 2
Apply knowledge of legislation to determine the possible structure of a fund.

ASSESSMENT CRITERIA

ASSESSMENT CRITERION 1
Legislation that impacts on the structure of a fund is identified with reference to
how legislation determines the possible structure of a fund.

ASSESSMENT CRITERION 2
The implications of potential changes in legislation for the structure of a fund are
discussed with reference to current information.

SPECIFIC OUTCOME 3
Develop a proposal to meet the identified needs of a specific organisation.

ASSESSMENT CRITERIA

ASSESSMENT CRITERION 1
A fund structure is selected and substantiated with reference to the identified needs
of the client.

ASSESSMENT CRITERION 2
The tax implications of the selected fund structure are explained with reference to
the tax profile of the client and the tax structure and salaries of the employees.

ASSESSMENT CRITERION 3
An insurance strategy is proposed to reinsure benefits.

ASSESSMENT CRITERION 4
Labour relations implications are assessed with reference to conditions of
employment.

ASSESSMENT CRITERION 5
An organisation's capacity is tested against the proposed structure.

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SPECIFIC OUTCOME 4
Design an implementation plan.

ASSESSMENT CRITERIA

ASSESSMENT CRITERION 1
The rules of the fund are drafted in accordance with the proposal and relevant
legislation.

ASSESSMENT CRITERION 2
Systems and procedures are outlined to facilitate implementation.

ASSESSMENT CRITERION 3
Role players are identified to liaise with the proposed fund.

UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS

· Anyone assessing a candidate against this Unit Standard must be registered as an
assessor with the relevant ETQA or ETQA where a Memorandum of Understanding
(MOU) exists with the relevant ETQA.
· Any institution offering learning that will enable achievement of this Unit
Standard must be accredited as a provider through the relevant ETQA or ETQA
where a Memorandum of Understanding (MOU) exists with the relevant ETQA.
· Moderation of assessment will be overseen by the relevant ETQA according to
the moderation guidelines and the agreed ETQA procedures.

UNIT STANDARD ESSENTIAL EMBEDDED KNOWLEDGE

N/A

UNIT STANDARD DEVELOPMENTAL OUTCOME

N/A

UNIT STANDARD LINKAGES

N/A

Critical Cross-field Outcomes (CCFO):

UNIT STANDARD CCFO IDENTIFYING

The learner is able to identify and solve problems in which responses show that
responsible decisions using critical and creative thinking have been made in
proposing a retirement fund for an organisation.

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UNIT STANDARD CCFO WORKING

The learner is able to work as a member of a team as structuring a fund is usually a
team effort.

UNIT STANDARD CCFO COLLECTING

The learner is able to collect, organise and critically evaluate information in
analysing human resources data.

UNIT STANDARD CCFO COMMUNICATING

The learner is able to communicate effectively in drafting the rules of a fund and
substantiating the choice of fund structure.

All qualifications and part qualifications registered on the National Qualifications

Framework are public property. Thus the only payment that can be made for them is for
service and reproduction. It is illegal to sell this material for profit. If the material is
reproduced or quoted, the South African Qualifications Authority (SAQA) should be
acknowledged as the source.

INSETA copyright 2014