State of Tennant

Sophisticated computerised pension administration system…

Tennant Benefit Consultant administers more than 50 funds. Over the last decade we have developed a powerful, carefully crafted (computerised) pension administration system. Originally the system was merely a tool in the hands of our pension administrators. Over time, we have enhanced the product to incorporate elements of artificial intelligence and precise control over every aspect of pension management. At any time we are able to, from one report, see the overall health of all our funds. The break-through came when we built our own General Ledger and married it to our existing administration system. We can now, on a monthly basis check the validity of member’s SOF (share of fund), not only through an actuarial cash flow calculation but also comparing administration results to the General Ledger. All the data required by the FSB is stored in our database and we can automatically merge to manufacture the Year End Financial Statement. We are very conscious of quality and time. All process time-lines are recorded and monitored. We have our own internal development team, who are closely aligned to company strategies and goals. As a result we are able to continually enhance and improve productivity to the benefit of all parties.

Current Position:

  • All our surplus apportionments are complete – (we are awaiting FSB approval on the last two);
  • All our 2008 funds financials have been audited and submitted to the FSB;
  • Most of the 2009 funds financials are either prepared, signed or submitted.

PENSION FUNDS ACT 24 OF 1956 under section 7.3 …

The FSB has in the past specifically addressed the problems related to liquidity of pension administration companies. In the PENSION FUNDS ACT 24 OF 1956 under section 7.3 the following statement is made “An administrator shall at any time maintain liquid assets equal to or greater than 8/52 of annual expenditure.” What this means is that any administrator needs to hold in reserve at least an amount equal to two months expenses. Tennant’s cash resources far exceed this. This requirement is obviously very onerous on borderline players but certainly is a good safe- guard against compromising pension funds. The recent demise of the Glenrand Administration is a case in point. This administrator is being liquidated currently, however, the resulting damage to members is without estimate as the accounts were not up-to-date and the member data may be compromised.

Confidence…

Tennant Life Benefits have confidence in stating the following:

  • We guarantee our excellent system and therefore our service to you;
  • On a monthly basis each trustee is assured that all financial transactions within a fund will be transparently and clearly show in a Trustee Report;
  • The HR department will also have a clear picture of the progress in the fund related to: distribution of member’s money, payment of exit benefits, and investment cash flows;
  • On a monthly basis your fund’s general ledger, cash flow analysis and SOF will be balanced and correct;
  • On a yearly basis we will within 6-8 weeks of the year-end have the fund ready for audit;
  • The Benefit Statements for the members will be available within two weeks of the trustees signing the financial statements;
    In our times, when service levels are under tremendous pressure, we hope to surprise you as to how exciting and efficient we are.