The standard was approved by Asisa’s board of directors last week, which means that Asisa member companies offering umbrella retirement fund solutions will start developing and implementing systems to enable disclosure at member level. Companies have until October 1, 2020, to complete implementation.
Taryn Hirsch, senior policy consultant at Asisa, says from October next year, all individual members of umbrella funds, as well as in-fund living annuities, will be able to request an EAC for their retirement benefits.
An in-fund living annuity is a living annuity offered by an umbrella fund to its members on retirement. Members can either retire from the fund (leave the fund) and buy their own living annuity directly from a product provider or they can remain a member of the fund and invest their retirement benefits in the in-fund living annuity.
Hirsch says the significance of the new EAC is that individual umbrella fund members will be able to review and compare charges on retirement fund products and then assess the impact on investment returns.