PF Circular 3: Fidelity Guarantee Insurance for Privately Administered Pension Funds

FINANCIAL INSTITUTIONS OFFICE,
Private Bag 238,
PRETORIA.
December, 1961.
CIRCULAR NC. P. F. 3.
,. . . ,. ' .. ., ..,. .. ~ ' . ), L . .: .. TO ALL PRIVATELY ADMINIST2RRED PENSION FUNDS. . . FIDELITY GUARANTEE INSURANCE. It is notified for general information that this Office has reached agreement with the Insurance Associations in regard to a fidelity policy suitable for pensi'on funds. The policy which is available from all members of the Associations, provides cover against losses resulting from the negligence and dishonesty of pension fund 'officers. Those.-funds which have not as, yet -taken out' the necessary fidelitjr cover should do so at their earliest convenience. It is difficult to give an indication of the minimum cover to be taken out as the amount will vary from fund to fund depending upon the particularcircunistances of every furid. Whilst this Office cannot recommend, a rate in every, case,, it suggests as a basis for consideration, cover 'equal to at least 5% of a fund' s total assets at 'the time the cover is taken out or renewed. It is also considered t,hat a maximum cover of RlC0,OOO will be 'sufficient. %~.4.d:.<:.-- REGISTRAR OF PENSION FUNDS.