RECENT NEWS

Good Governance for Retirements Funds

19th of March 2010

Good Governance for Retirements Funds Read More...

Tax incentives play small role in saving

20th of March 2010

  Tax incentives 'play small role in saving'   Tax incentives are not necessarily a way to encourage long-term savings, says Keith Engel, the chief director of legRead More...

Interest rate increase on Housing Loans

8th of June 2010

  Interest rate increase on Housing Loans Dear Sir /Madam Kindly note that the current interest rate of 14% charged to the members for housing loans is not in accordance wiRead More...

Death Benefits Distribution

29th of June 2010

  Death Benefits Distribution   There are new challenges facing trustees. A more appropriate and sound way of ensuring that lump sum benefits owed to the minor children ofRead More...

Taxing early withdrawals

29th of July 2010

  Taxing early withdrawals   In this article, Michael Summerton and Carla Rossouw provide an overview of how withdrawal and retirement benefits are taxed. They use practical eRead More...


EVENTS


CURRENT RETURN

11% Fund 10% Trust

About HGPF

The HGPF is a member driven retirement fund that operates nationally in South Africa. It is open to workers and employers in any trade or profession. As of the 1st September 2009, the Fund had 22 634 members in 803 workplaces.

 

It is a "private" fund, which means it is independent of any insurance company and has its own board of trustees, principal officers, auditors and actuary. As a national fund operating in all industries even if you transfer from company to company you remain a member, provided that your new company has joined HGPF.

 

Investment Policies

The fund has Assets of R445 million. The main investments are in housing loans to members, Badiri Housing Association, Coronation Asset Management, various products offered by Old Mutual and Cadiz Asset Management, insurance policies offered by various institutions.
 

Brief History of the Hospitality and General Provident Fund

1966

Defined benefit” pension fund set up by the Industrial Council for the Liquor and Catering Trade Witwatersrand/ Vereeniging; Eligibility: White, Coloured and Indian workers; Administered by the Industrial Council

1985

Non-racial trade union HARWU begins to transform the Industrial Council – Black workers admitted to the pension fund

1989

Fedsure take over as administrators – becomes an “underwritten” fund.

1990

Change to “money purchase” pension fund – termination of the industrial council – fund becomes “private”.

1991

Name changed to Hospitality Industry Pension Fund – becomes national; HARWU merges with CCAWUSA to form SACCAWU

1992

Provident fund set up – fund becomes known as Hospitality Industry Pension and Provident Fund

1993

Administration transferred to Southern Life

1994

Membership elect to transfer from pension to provident fund – pension fund left dormant

1995

SACCAWU withdraws from the fund– trustees elected directly by the membership, no longer appointed by trade unions; Six monthly benefit statements introduced; Live membership of 4,500; Dormant membership of 20,000; Surplus distribution of R45m – each live member and pensioner as at 1 June 1994 receives R8,000; members over age 55 years receive additional R4,000; First housing loans issued directly by the fund; First Member Forum held – member representatives elected at each company; Fedsure sued for maladministration – fund recovers R1, 5m in damages

1996

Establishment of Badiri Housing Association – non-profit worker housing Company; Social investment policy developed; Education loans issued 2

1997

Self administration set up – one year contract with Multisure to assist training; Branch offices set up in Durban and Cape Town

1998

Fund receives administration licence from Financial Services Board – becomes fully independent; Self insurance for all benefits; FSB revokes permission for education loans; Fund assists workers in Cape Town and KZN South Coast to force bonus declarations by liquor and catering funds

1999

Parent Funeral cover introduced

2000

Workers from non-hospitality sectors start to join

2001

Borwa Financial Services set up with fund as majority shareholder – new admin license issued to Borwa; new software systems introduced; Savings and Credit Cooperative (SACCO) set up; Branch office opened in Nelspruit; Live membership of 9,000

2002

Name changed to Hospitality and General Provident Fund

2003

Bochabela (non- profit company providing loans for small business and cooperatives) set up; HG SACCO disbanded

2004

Extended Family Funeral cover introduced; Branch office opened in Port Elizabeth; Trusts transferred from outside companies and self-administered – trust investigations performed by the fund

2005

HIV/AIDS officer appointed; Bochabela made dormant;New minimum contribution rate of 7% adopted

2006

Bochabela made dormant; Bohlale ba Basebetsi (non-profit company) set up with Khanya College to provide worker education and manage building purchased in Johannesburg; Trade union forum set up.

2007

National forum held with 120 regional delegations; retirement bonus introduced; Funeral benefits improved; Retirement bonus introduced; New minimum contribution rate of 7,5% agreed as from 1 July; Personal finance officer appointed; Health education broadened; Membership reaches 19,000 members with 660 participating companies. 

2008

Extended Family Funeral cover improved; attemps made to set up Badiri Housing Association projects outside of Gauteng; agreed to relaunch the SACCO (Savings and Credit Cooperative); provided strict membership targets are achieved; agreed to assist trade unions in Mocambique to set up a funeral scheme as a first step to launching a fully fledged provident fund.