At Fairheads we are concerned that many large retirement funds have not yet appointed a beneficiary fund and choose to retain and administer minors’ benefits in the retirement fund itself. In certain circumstances, where the assets of children need to be retained for a short period of time, it would be acceptable to retain these assets in the retirement fund, but this should be the exception rather than the rule.

This article explains why retirement funds are simply not designed to cater for the specialised, high-intensity administration of children’s benefits which require very specific asset allocation, communication and other processes.