The extent of the delegation of responsibilities and the defined limits of authority for each sub-committee are clearly defined in the terms of reference documents issued and regularly reviewed by the Board of Trustees.
The operation of the funds has been contracted to MIFA, which is led by its Chief Executive Officer who reports to the MIFA Board of Directors.
The principal officer attends to all the legal requirements of the funds. All necessary actuarial valuations are obtained and reported to the funds concerned. The company also submits the required annual reports on all funds to the Financial Sector Conduct Authority (FSCA) and complies with all the requirements of that body.
- The board consistently follows an investment strategy of risk diversification.
- Equity and fixed interest investments are accordingly contracted externally in line with the asset liability model approved by the board.
- The maximum permissible level of investments per asset class has been mandated in accordance with the risk diversification strategy.
- All funds are actuarially valued on a regular basis and have been certified to be financially sound.
- Continued attention is given to advancements in computer hardware and software technology, with MIFA achieving high levels of efficiency and cost effectiveness in the administration of the funds.
- MIRF complies with the highest standards of corporate governance as set out in the King Report.
- Statutory requirements are closely monitored in liaison with the fund’s actuaries and the FSCA, and the funds are all in full compliance with current legislative requirements.
- Moruba Actuaries and Consultants provide actuarial services. Auditing services are provided by Nexia SAB&T.
MIRF provides retirement solutions to over 250 000 active members and has a total asset value of almost R40 billion. It aims to provide the most secure retirement solutions to employers and employees in the retail sector of the South African motor industry. MIRF is managed by the Principal Officer, Mr Adam Esat, who ensures compliance of the Funds with all legal, financial, and regulatory requirements.
The Motor Industry Fund Administrators (MIFA) is registered as a retirement fund administrator in terms of Section 13B of the Pension Funds Act and is responsible for the administration and management of the five MIRF Funds. MIFA has its own Board of Directors and its employees are well-positioned to meet the requirements of the funds and provide the necessary support to MIRF members.
MIRF has a long and mutually supportive relationship with MIBCO, as the bargaining council for the motor industry. MIRF has contracted MIBCO to collect member contributions from the employers. MIBCO also supports MIRF by ensuring that the employers are informed about and engaged on aspects relating to the funds.