Rising claim levels could offset retirement pension administration savings
Sanlam Employee Benefits head of specialist projects David Gluckman says despite cutting costs of administering funds by up to 50%, the risk of claims continues to rise
Hundreds of pension funds have halved their administration costs in the past decade, however, there are concerns that the benefit could not be passed on to members because of rising claims, said Sanlam Employee Benefits on Wednesday.
David Gluckman, head of specialist projects at Sanlam Employee Benefits, told attendees at the Sanlam Retirement Benchmark Symposium that umbrella funds administered by Sanlam reduced their administration costs per member by 50% and big standalone funds reduced theirs by 25% between 2009 and 2019. Umbrella funds house multiple unrelated retirement funds of different employers while standalone funds serve only one employer...
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