The entries in this year`s Institute of Retirement Funds` Communication
Challenge Award, sponsored by Liberty Corporate Benefits and Personal
Finance, were of exceptionally high standard and hailed by some of the
judges to be of world class standard.
The awards were made at the annual convention of the Institute of
Retirement Funds this week.
The Communication Challenge Award Competition rewards retirement funds that
have identified their key strategic communication objectives and
implemented these objectives in creative and innovative ways for the
benefit and improved knowledge of fund members. In this year`s competition
the judges found that the educational value was high, although many had
limited budgets. The judges felt, however, that the funds should have been
more focused and pro-active in their communication efforts.
For the second year running, the Large Fund Category was won by Debswana
Pension Fund.
Debswana`s communication activities were innovative and took
the culture of its members into consideration. Its communication was of a
high standard and its strategic communication plan well executed.
Eskom Pension and Provident Fund came second for the second year running.
Its communication activities were based on members` and pensioners` needs
and involved all stakeholders of the fund. Eskom conducted very successful
trustee elections and was commended for its web page.
Iscor Pension Fund (Coris Capital) came third. This is the first year that
this fund entered and although it had a limited budget, the fund had
excellent face-to-face communication and addressed the fears and concerns
of its members. The fund`s messages were focused and had a high educational
value.
The funds` communications efforts were judged on strategy, clarity,
educational value, visual appeal and effectiveness.
The IRF Communication Challenge Award competition received nine entries
this year, all of which were in the Large Fund category (more than 2000
members). The judges, professionals from different fields, represent the
Communication Faculties of RAU and UNISA, Financial Services Board,
Institute of Retirement Funds, Retirement Association and a consumer body.
Bruce Cameron, the Editor of Personal Finance, said that the level of
ignorance among retirement fund members about their funds was often very
high. With far greater choices being given to members, particularly in
investment, it was necessary that they be given a lot more understandable
information about their funds and investment choices. Another important
factor requiring proper communication between funds and members was the
issue of fund surpluses.
It was a pity that there were no entries in the small funds category as
greater investment choice being given to members was mainly with small
funds. Members had to understand that with greater choice often came higher
risk to their retirement savings as well as significantly higher costs.
Ian Maron, managing director of Liberty Corporate Benefits said
communication was an important aspect of many facets of life, but possibly
nowhere is it as important as the communication between a retirement fund
and its members.
``There are many parties and roles contributing to the success of a
retirement fund. These include the fund itself, the members, the employer,
the trustees, the fund administrator and the professional consultant.
Members, as the primary stakeholders, need to understand the scheme, its
benefits and its obligations towards them. The contributions made to the
average retirement fund by the employer probably represent the most
significant employee cost after salaries. For this reason, South African
employers do not seem to have exploited the potential for enhancing staff
relations by communicating their investment in each employee`s future.``
Marron said there were five words that collectively describe successful
communication.
These were:
Accuracy: This means in all details;
Comprehensive: Everything stakeholders need to know, but without
overloading them with information
Understandable: Using plain language;
Regular: Not only once a year, but by using a wide range of media vehicles,
frequently enough to encourage interest and participation; and