And Why Every Working Professional Should Care.
By Tokiso TKay Nthebe
I once attended a retirement conference hosted by the Institute of Retirement Funds Africa where a speaker made a statement that has stayed with me:
“Retirement is not an accident. It is an incident. Plan for it.”
That statement shifts responsibility back to us.
Yes, employers contribute.
Yes, funds appoint professionals.
Yes, trustees oversee governance.
But retirement is ultimately your money.
And if you are contributing monthly to a pension or provident fund, you should understand one critical structure that protects it:
The Board of Trustees.
Who Is the Board of Trustees?
The board of trustees is the governing body of your pension fund.
Their legal duty is to:
- Protect the interests of members and beneficiaries
- Act with due care, diligence, and good faith
- Manage the fund responsibly
- Ensure compliance with all relevant laws
Under Section 16 of the Pension Funds Act, a board must consist of:
- An odd number of trustees
- At least five (5) members
- Not more than eleven (11) members
In umbrella funds, the sponsor (for example, an insurer) may appoint trustees, but there must be proper representation, including independent trustees and member representatives.
This structure exists to balance interests and ensure accountability.
What Are Trustees Responsible For?
Trustees carry significant fiduciary responsibility. Their role is not ceremonial — it is regulatory and protective.
Here are their core duties:
1. Acting in the Best Interest of Members
Trustees must always prioritise members’ financial interests over personal or employer interests.
They are legally bound to act impartially.
2. Ensuring Legal Compliance
Trustees must ensure the fund complies with:
- The Pension Funds Act
- The Income Tax Act
- The Children’s Protection and Welfare Act
- Any other applicable regulations
Failure to comply can result in penalties and financial harm to members.
3. Governance & Risk Management
Trustees must:
- Establish a code of conduct
- Manage conflicts of interest
- Implement proper control systems
- Oversee risk management frameworks
Good governance protects your retirement savings from mismanagement and fraud.
4. Appointing Professionals
Trustees appoint and oversee:
- Asset managers
- Administrators
- Actuaries
- Auditors
These experts handle investments, reporting, valuations, and compliance — but trustees remain accountable.
Delegation does not remove responsibility.
5. Monitoring Contributions
Trustees must ensure:
- Contributions are collected on time
- Employers pay over deductions correctly
- Records and registers are properly maintained
Late contributions affect long-term growth. Trustees must intervene where necessary.
6. Communication with Members
Trustees are responsible for ensuring members receive:
- Benefit statements
- Fund performance updates
- Regulatory communications
- Educational material
An informed member is an empowered member.
7. Distributing Death Benefits
As discussed in our previous article on beneficiary nomination forms, trustees must:
- Investigate dependents
- Apply the law fairly
- Distribute benefits impartially
This is one of their most sensitive responsibilities.
Why This Matters to You (Ages 25–50+)
Many professionals assume retirement funds “run themselves.”
They don’t.
Trustees make decisions that affect:
- How your money is invested
- How risks are managed
- How benefits are paid
- How disputes are resolved
If you are 25–35:
You may be early in your career, but governance decisions today affect your long-term returns.
If you are 35–45:
Your retirement balance is growing. Oversight and compliance matter even more.
If you are 45–50+:
You are approaching preservation and retirement planning. Governance stability is critical.
Regardless of age — this structure exists to protect your money.
But Here’s the Part Most People Ignore…
Trustees have responsibilities.
But so do you.
Your Responsibility as a Fund Member
Retirement is not passive.
As a member, you should:
- Read your fund rules
- Review your annual benefit statement
- Attend member briefings
- Complete and update your beneficiary form
- Ask questions when something is unclear
Financial empowerment is not about knowing everything.
It’s about being informed enough to ask the right questions.
The Bigger Lesson
Retirement success is built on three pillars:
- Personal discipline
- Professional management
- Strong governance
Trustees handle governance.
But you must stay engaged.
Because retirement is not an accident.
It is an intentional outcome of informed decisions and responsible oversight.
Final Thought
Your retirement fund may be one of your largest lifetime assets.
Do you know who oversees it?
Do you understand their role?
Do you review your fund communications?
The more you understand the structure protecting your money, the more confident you become about your financial future.
Tokiso TKay Nthebe is an author, podcast host, financial coach, and Lead Advisor at TKO Financial Wellness & Advisory. He guides professionals who feel overwhelmed by investing and retirement decisions to gain clarity, control, and a strategy they trust — so their money works for them while they prepare for retirement.
For resources and personalised coaching:
www.tkofinancialwellnessacademy.com
info@tkofinancialwellness.com
