Performance Contract for (name of PO) Version 3 - January 2008

PERFORMANCE CONTRACT FOR:(NAME OF PRINCIPAL OFFICER)
FOR THE PERFORMANCE PERIOD: / From: To:
SECTION ONE
PRINCIPAL OFFICER AND CHAIRPERSON DETAIL
NAME / DATE / SIGNATURE
PRINCIPAL OFFICER
CHAIRPERSON
SECTION TWO
KEY PERFORMANCE AREAS WITH RELATED OUTPUTS
JOB OUTPUTS
The products, services and/or information that I provide to my clients / Weight / SUCCESS MEASURES
(e.g. Quality; Cost; Time/turnaround times; Completeness) / VERIFICATION SOURCES
(how to confirm that work has been delivered at required standard)
KPA 1: INDIVIDUAL OUTPUTS (STATUTORY DUTIES)
(work that the principal officer must perform him/herself)
Monitoring payment of contributions (where the fund has not appointed a monitoring person in terms of regulation 33) /
  • Take steps timeously to ensure that all contributions are paid within 7 days of falling due in line with PFA, section 13A, regulation 33 and PF110
  • Notify trustees timeously of any infringements of the Pension funds Act with respect to the timeous payment of contributions in line with PFA, section 13A, regulation 33 and PF110
/
  • Reconciliation of payment
  • Minutes of meetings

Certifying that information provided for purposes of a valuation is complete and correct as required by Section 16(8) /
  • Timeousness
  • Submit complete and accurate information in line with prescribed valuation dates in line with PFA, Section 20(3)
/
  • Valuator report

Signing of all documentation that must be sent to the Registrar of Pension Funds:
  • Annual accounts and statements
  • Appeals to the Appeal Board of FSB
  • Transferred business certificates
  • Amendments to rules
  • Schedule C – statement of responsibility by the principal officer
  • Reserve bank certification (?)
/
  • Timeous sign documentation to meet the required submission deadlines as set out in the PFA.
  • All documentation presented for signature are compliant with the law.
/
  • Confirmation letter from Registrar

Submitting relevant documents to the Registrar (if not delegated to the Administrator, e.g. Financial statements and statistics, amendments and consolidation on to the rules )(section 12(2); section 12(4); section 12 (5)) /
  • Timeous submit complete and accurate documentation to the Registrar
/
  • Acknowledgement of receipt from FSB
  • Confirmation letter from Registrar

Communicating any alterations, rescissions of or additions to the rules of the fund to members according to regulation 24(d) /
  • Communicate any registered changes to the rules to members within 6 months of the financial year end of the fund
/
  • Availability of actual communication documents

Weighting per KPA must add up to 100% / 100%
KPA 2: INDIVIDUAL OUTPUTS (ADMINISTRATIVE DUTIES)
Facilitate the availability of and administer all contracts and agreements with service providers /
  • Facilitate the timeous completion of contracts and agreement prior to the commencement of engagement
  • Prepare lists of all contracts and agreements for review on an annual basis
  • Timeously effect any changes to contracts and agreements
  • Keep proper record of revised contracts and agreements
/
  • Minutes of meetings
  • Actual contracts and agreements
  • Lists of contracts and agreements
  • Records of revised contracts and agreements

Document policy decisions and compile policies and procedure manuals /
  • Timeously document and effect any changes to policies
  • Implement practices and procedures in line with board resolutions
/
  • Minutes of meetings
  • Actual policy manuals

Compile the framework and mandate for sub committees, based on board decisions, and facilitate implementation /
  • Facilitate the establishment of sub committees in line with board resolutions and the rules of the fund within the said time frames required by the board of trustees
/
  • Minutes of meetings
  • Actual structures and mandates implemented

Meeting facilitation and management /
  • Ensure compliance in terms of notice periods, meeting intervals, structures, mandates and quorums
  • An annual schedule of meetings in place Meeting procedures and polices are communicated to trustees
  • Schedule meetings of Trustees and Subcommittees
  • Arrange venues for meetings
  • Prepare and distribute agenda and documentation – complete and timeously; input from all stakeholders on agenda items
  • Keep attendance record and prepare and distribute meeting minutes which reflect a clear and practical record of events
/
  • Availability of physical documentation

Document and information management /
  • Managed & safeguarded in accordance with fund practice and procedures
  • Updated record of all fund officers as required by the PFA
/
  • Availability of physical documentation

Administer the process of electing member trustees and nomination of employer trustees /
  • The election process managed in line with fund practice and procedure
/
  • Documentary proof

Post election trustee administration:
  • Facilitate signing of annual declaration of interest form by trustees
  • Facilitate signing of an acceptance of trust and code of conduct
  • Ensure office bearer protection via the appropriate PI&FG cover
  • Record is kept of Terms of conditions of appointment of trustees
  • Manage the termination of a trustee’s term of office
  • All new trustees will be orientated
  • Brief all new trustees on Fund history and position of the funds and other fund related matters
/
  • Declaration of interest signed annually
  • Acceptance of trust and code of conduct documents signed in accordance with fund practice and procedure
  • Officer protection renewed annually
  • Orientation programme implemented in line with fund practice and procedure
/
  • Documentary proof

Handle member complaints (1st point of resolution) /
  • Address complaints within the timeframes determined by fund practice and procedures
/
  • Record of concluded complaints

Act as representative of fund in all legal proceedings /
  • Proper recording of court orders against the fund
  • Timeous compliance with court order requirements
/
  • Records of the funds

Weighting per KPA must add up to 100% / 100%
KPA 3: RESULTS ACCOUNTABLE FOR
(all the areas of responsibility that have been delegated, but has to be managed)
Oversee and manage compliance audits /
  • Conduct an annual compliance audit
  • Implement steps to ensure compliance in line with outcome of the audit report
/
  • Audit report
  • Minutes of the Board meetings

Oversee and manage trustee training /
  • Appropriate training schedule in place
/
  • Minutes of meetings
  • Training certificates
  • Attendance record

Actuarial – Ensure that the Actuary is provided with all relevant fund information.Sec 7C(2)(b) & PF 98 4.5.2 /
  • Information provided in the format required by the FSB
  • Timeous information provided
  • Variances are reported to Board / FSA
/
  • Report by Actuary

Accounting – Financial statements - availability of proper accounts of the income and expenditure of the fund to the Board and FSB /
  • Timeous information provided in the format required by the FSB
/
  • Audit report

Administration – Monitors availability of administrative records of the operations of the fund (incl. membership records; contributions received; payments made; movement of assets; receipt of payments received; etc.) /
  • Administrative report-backs done within timeframes set in administration agreement
/ Performance reports from administrators
Fund performance – Monitors that the contributions are paid over to the investment manager for investment /
  • That the contributions are invested in accordance with the fund’s practice and procedure
/
  • Investment performance report

Benefits – Oversees and monitors the distribution of annual benefit statements and investment choices to members and pensioners /
  • Annually within 6 months of the financial year-end of the fund PF 86 and PF 90
/
  • Benefit statement

Benefits – Oversees and monitors the distribution of death, disability and general benefits /
  • Death benefits paid out within 12 months after the death of a member
  • Claims paid within fund’s practice and procedure manuals
/
  • Report of sub committee

Benefits – Monitors and report on the payment of transfer and withdrawal benefits /
  • Within 60 days from request
/
  • Report of sub committee

Communication - Monitors and report on the implementation of communication activities in respect of the mandates and fund’s requirements /
  • Adequate and appropriate information conveyed to its members in line with time frames determined by fund practice and procedure
/
  • Communication strategy supported by actual communication documents distributed.

Weighting per KPA must add up to 100% / 100%
KPA 4: MANAGEMENT
(all the work that related to management)
Develop operational plans to facilitate the execution of the fund policies / responsibilities / Board of trustee decisions. Includes objective setting and operational planning and contracting with service providers /
  • Plans are aligned with and in accordance with the SLA’s / contracts concluded by the Board of Trustees
  • Plans are presented to the Board/Subcommittees for approval
/
  • Plans presented to the Board

Monitor service providers / monitor execution of operational plans / implementation of decisions made at Board of Trustee meetings /
  • Exceptions / deviations and performance issues will be identified proactively
  • Actions will be taken to resolve performance issues
  • Unresolved issues will be escalated to the appropriate stakeholder/s timeously
  • Regular feedback to all relevant stakeholders with regard to progress against plans (at least quarterly)
/
  • Reports to the Board

Weighting per KPA must add up to 100% / 100%
KPA 5: LEADERSHIP
(all the work that relates to leadership)
Provide guidance and advice with regard to a vision, and the direction for the fund and/or unit to Board /
  • Agendas for meetings cover all strategic issues which require consideration and decisions in fulfillment of the requirements of Section 7C of the Pension Funds Act
  • Provide some guidance to the Trustees on strategic issues, policies, procedures, compliance and risk management responsibilities of the Fund’s rules / operations / administration (e.g. selection and performance measurement of service providers; custody of documents and scrip; distribution of death benefits; voting rights of Trustees; allocation of surplus; pensioner increases; post retirement interest rate assumptions)
  • Is available to assist stakeholders with advice and guidance
/
  • Board agendas

People management and empowerment /
  • Seeks opportunities to increase trustees’ contribution and level of responsibility
  • Supports and respects the individuality of others and recognises the benefits of diversity of ideas and approaches
  • Manages conflict through a participatory transparent approach
/
  • Observations of trustees and chairperson

Weighting per KPA must add up to 100% / 100%
KPA 6: STAKEHOLDER RELATIONSHIP MANAGEMENT
(all the work that has to be performed to manage key relationships)
Act as spokesperson for the funds where mandated by the Board /
  • Communication in line with fund objectives and as directed by the board
/
  • Meeting minutes; report of activities

Effectively liaise with service providers, beneficiaries and trustees /
  • Frequency of interaction
/
  • Meeting minutes; report of activities

Liaise between the Trustees, the Registrar of Pension Funds, SARS and Industry Bodies to ensure an open and cooperative relationship (how well does the PO manage the relationship between the Employer and the Board / Stakeholders?) /
  • All relevant information is provided to all the appropriate stakeholders timeously
/
  • Meeting minutes

Weighting per KPA must add up to 100% / 100%
SECTION THREE
SUMMARY OF KPA/OUTPUT PERFORMANCE ASSESSMENT
KPA Description / Weight % (allocate a weight out of 100 to each of the KPA’s to indicate their relatve importance in relation to each other)
KPA 1 Individual outputs (statutory)
KPA 2 Individual outputs (administrative)
KPA 3 Results accountable for
KPA 4 Management
KPA 5 Leadership
KPA 6 Stakeholder management
Weighting for all KPA’s together must add up to 100% / 100%
SECTION FOUR
COMPETENCIES
WEIGHT
CONFIDENCE AND DECISIVENESS / %
Taking decisions unhesitatingly when required, even under difficult circumstances. Making a clear stance on issues and building confidence in the capacity of staff, unit and company to succeed.
KEY BEHAVIOURS
  • Unhesitatingly makes prompt, timely and clear decisions which may involve tough choices or considered/calculated risks, sometimes with incomplete information and under tight deadlines and pressure
  • Acts with confidence and authority
  • Expresses confidence and clarity in dealing with issues
  • May recognize alternatives and uncertainty, but states own position and deals directly with other positions so as to spell out the justifications of each
  • Expresses disagreement or defends point of view with flexibility and tact

PRO-ACTIVITY / %
Taking responsibility and showing initiative. Taking prompt action to accomplish objectives; taking action to achieve goals beyond what is required; seeing opportunities and acting on them
KEY BEHAVIOURS
  • Takes responsibility and works under own direction / without close supervision; takes independent action
  • Responds quickly by taking immediate action when confronted with a problem or when made aware of a situation
  • Anticipates and removes constraints and barriers on action and initiative

ADHERING TO PRINCIPLES AND VALUES / %
Upholding ethics and values, acting with integrity and promoting equal opportunities
KEY BEHAVIOURS
  • Upholds and acts in line with ethics and values, during both good and bad times
  • Demonstrates integrity
  • Keeps confidences
  • Values and deals equitably with all races, nationalities, cultures, disabilities, ages and both sexes – values diversity
  • Act in the best interest of all fund members with due care, diligence and good faith, as instructed by the Trustees and in conformance with the rules

RELATING AND INTERACTING TO OTHERS / %
Establishing effective relationships with customers, staff and stakeholders, networking effectively within and outside of the organisation and relating well to individuals at all levels. Deals effectively with interpersonal conflict situations
KEY BEHAVIOURS
  • Builds rapport and collaborative relationships
  • Establishes constructive and effective relationships with stakeholders
  • Identifies and manages key relationships to further the attainment of objectives
  • Relates well to people at all levels
  • Steps up to conflicts in a firm, timeous and constructive manner

PERSUADING AND INFLUENCING / %
Making a strong impression on others, gaining agreement, commitment and support through persuasion and negotiation
KEY BEHAVIOURS
  • Gains clear agreement and commitment and builds support from others by persuading, convincing and negotiating
  • Uses a variety of means to persuade and influence including: persuasive arguments, setting examples, modeling the desired behaviors or ideas, linking ideas to values and inventing symbols which act as bonds
  • Uses sound rationale to explain value of actions
  • Effectively overcomes objections
  • Promotes ideas on behalf of self or others
  • Able to achieve consensus between stakeholders with conflicting interests

PRESENTING AND COMMUNICATING INFORMATION / %
Speaking clearly and fluently, expressing opinions and arguments clearly and convincingly and making presentations with confidence
KEY BEHAVIOURS
  • Speaks audibly and fluently
  • Expresses opinions, information and key points of an argument in a clear, concise and easy to understand manner
  • Structures information in a logical order to aid understanding
  • Keeps to the point
  • Keeps others attention while talking
  • Uses body language that is consistent with verbal communication and aids understanding
  • Makes presentations and undertakes public speaking with skill and confidence
  • Responds quickly to the needs of an audience and to their reactions and feedback
  • Projects credibility

WRITING AND REPORTING / %
Writing clearly and succinctly in an interesting and convincing manner and structuring information in a logical manner to facilitate the understanding of the intended audience
KEY BEHAVIOURS
  • Writes clearly and correctly
  • Avoids the unnecessary use of jargon or complicated language
  • Writes in a well structured and logical way
  • Structures information to meet the needs and understanding of the intended audience

APPLYING PROFESSIONAL / SPECIALIST EXPERTISE / %
Having achieved a satisfactory level of technical and professional skill or knowledge in position-related areas, applying expertise, developing job knowledge and keeping up with current developments and trends in areas of expertise and sharing knowledge with others
KEY BEHAVIOURS
  • Applies specialist and/or detailed technical expertise
  • Develops job knowledge and expertise through continual professional development
  • Shares expertise and knowledge with others

INFORMATION GATHERING AND PROBLEM ANALYSIS
Analysing data of a verbal and numerical nature and other sources of information, breaking information down into components, probing for/gathering further information. Linking information to effectively identify key issues, causes of events and problems
KEY BEHAVIOURS
  • Analyses numerical data, verbal data and all other sources of information
  • Links and integrates different kinds of information across areas and over time to form ideas
  • Probes for further information or greater understanding of a problem
  • Makes rational conclusions from the available information and analysis

JUDGMENT / %
Generating workable solutions to problems/issues by comparing the pros, cons and consequences of alternative solutions/courses of action
KEY BEHAVIOURS
  • Evaluates and considers all the relevant facts / all the available data to determine and recommend solutions
  • Produces workable solutions to a range of problems, which relates logically and rationally to the situation / issue / information obtained
  • Develops solutions that address all aspects of an issue
  • Identifies feasible alternatives or multiple options or perspectives during decision making
  • Holds different options in focus simultaneously
  • Considers the pros, cons and consequences of alternative solutions

PLANNING AND ORGANISING / %
Setting clear objectives, planning activities and their sequence well in advance and managing own and resources’ time effectively. Appreciation of need for monitoring and maintenance of control over processes, people and tasks, and actions taken to ensure this
KEY BEHAVIOURS
  • Sets clearly defined objectives and measures
  • Plans activities and projects well in advance and takes account of possible changing circumstances
  • Identifies the key tasks required to achieve objectives
  • Prioritises and coordinates tasks and resources according to importance and deadlines to be met and re-adjust when appropriate
  • Accurately scopes out length and difficulty of tasks and projects
  • Develops time lines and milestones for own and/or others' work
  • Identifies and organises resources needed to accomplish tasks
  • Clearly assigns responsibility for tasks and decisions
  • Monitors progress and performance against deadlines and milestones (or implement systems to monitor progress and performance)
  • Implements feedback loops

QUALITY AND DETAIL ORIENTATION / %
Setting high standards for quality. Total task accomplishment through concern for all areas involved, no matter how small and accurately checking processes and tasks according to a set standard
KEY BEHAVIOURS
  • Works in a systematic, methodical and orderly way
  • Dedicates required time and energy to work to ensure that no aspect of the work is neglected
  • Takes responsibility for outcomes of one's own work; admits mistakes and refocuses efforts when appropriate
  • Ensures that checks and balances are in place to minimize errors
  • Pays attention to detail in written work or calculations. Ensures that errors do not occur and that mistakes are corrected
  • Keeps clear, detailed records of work

Weighting for all competencies together must add up to 100% / 100%
SECTION FIVE
OVERALL PERFORMANCE ASSESSMENT
Description / Weight % (allocate a weight out of 100 to the KPA/Output component and the competency component to indicate their importance in relation to each other)
SECTION 2 – KPA’s/OUTPUTS
SECTION 4 – COMPETENCIES
Weighting must add up to 100% / 100%

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