Retirement fund computer software provider SouthernX Software Solutions has challenged the conclusions of the outgoing interim board that its Ben-e-fit program was “inappropriate” for the much troubled Private Security Sector Provident Fund (PSSPF).
The view of the interim board was reported in Personal Finance last week.
The interim board, which was appointed by the Financial Services Board two years ago to tackle problems at the fund, has been in the process of transferring the administration system to that of Absa Consultants and Actuaries from the previous administrator, NBC.
Other issues that the interim board says caused problems were inconsistent payments of contributions by employers and the rapid turnover of membership, which, on average, lasts 2.4 years.
A director of SouthernX Software Solutions, Gary Hughes, who is a previous principal officer and trustee of the PSSPF, says many other factors contributed to the PSSPF’s problems and these “are not software related, but are due to the processes and people factors around this particular fund”.
Hughes says the fund has been on the same computer administration platform for 10 years using his company’s Ben-e-fit software. The software was used by Absa as a tactical solution while cleaning the data for transfer to its own platform.
He says initially Absa received a 12-month limited licence from his company to continue administering the fund until a full migration of administration could be completed. The licence was extended for another 12 months.
Hughes says that the sole reason for the proposed change of software systems is because Absa already had a core administration system – and not because of problems with the software.
Hughes claims that any problems with Ben-e-fit arose because the software was adapted by the PSSPF to meet its own requirements.
When the PSSPF administration staff left en mass in 2008, the information technology skills went as well “which resulted in a situation where there was an application that was supported internally now not being attended to with the required skills, and to manage the environment thereafter was challenge”.
Hughes says that his company is assisting in resolving administration problems to allow Absa to “catch up and put them in a position to migrate”.
“At no time was the software or its inappropriateness raised,” he claims.