Sanlam pays "member per month" administration fees to Alexander Forbes and ABSA for schemes that are administered by these administrators. Sanlam also gets a portion of this administration fee.
A "member per month" administration fee is charged for administering Namibian schemes.
In addition to this, there is a once-off administration fee for new pensioners.
Sanlam presently pays commission for some new business if this comes through a Broker, provided the Broker is registered with the FSB. The commission value is calculated outside of the system.
The fees are payable even if a member is suspended.
The fees are increased annually.
The system processes these fees on a monthly basis.
For more information on Expense Billing, refer to Expense Calculation and Billing under:
Processes
Expense Billing
When the JU3BH_BILL expense billing batch job runs, if the Formula Type is AMOUNT and the Formula Applied To is MEMBERSHIP, the admin fee will be calculated by the system as follows:
Annuity Fund
If the Fund Group Type value for the Fund Group Type, TYPE OF FUND for the Scheme is ANNUITY FUND, the number of annuitants including suspended annuitants will be determined.
The system will:
- Find the Membership Payment records for which the Type of Payment is ANNUITY or LIVING ANNUITY and for which the Start Date is less than or equal to the Effective Date of the Expense Billing run and the End Date is greater than the Effective Date of the Expense Billing run.
- Find the Benefit Membership Group for the Membership to which the Membership Payment record is linked and sum the number of records found per Membership Group.
- Multiply the result by the value on the Scale linked to the Expense Rule for the Benefit Membership Group.
- Read the Vatable indicator on the Expense Rule and if the value is Y read the current Percentage on the Territory Parameter VAT and calculate the VAT amount by multiplying the Fee amount calculated by the VAT percentage value and dividing by 100.
- Sum the results for all the Membership Groups and create the Business Transactions with the FEEBILLING Accounting Activity.
If the value for Accounting Rule Required per Global Type is Y, the system will read the Accounting Rule for the Expense Type and create the Business Transaction according to the Accounting Rule found.
The system will create the business transaction for the VAT amount with the FEEBILLING Accounting Activity and according to the Accounting Rule for the VAT Global Type.
Retirement Fund
If the Fund Group Type value for the Fund Group Type, TYPE OF FUND for the Scheme is RETIREMENT FUND the number of memberships will be determined.
The system will:
- Find the Membership records for which the Status is LIVE, ANNUITANT or LIVING ANNUITY and for which the CAR Start Date is less than or equal to the Effective Date of the Expense Billing run and the End Date is greater than the Effective Date of the Expense Billing run.
- Find the Benefit Membership Group to which the Membership record is linked and sum the number of records found per Membership Group.
- Multiply the result by the value on the Scale linked to the Expense Rule for the Benefit Membership Group.
- Sum the results for all the Membership Groups and create the Business Transactions with the FEEBILLING Accounting Activity.
If the value for Accounting Rule Required per Global Type is Y, the system will read the Accounting Rule for the Expense Type and create the Business Transaction according to the Accounting Rule found.
If the value for Accounting Rule Required per Global Type is Y, the system will read the Accounting Rule for the Expense Type and create the Business Transaction according to the Accounting Rule found.
The system will create the Business Transaction for the VAT amount with the FEEBILLING Accounting Activity and according to the Accounting Rule for the VAT Global Type.
For more information on the processing of Expense Billing, refer to
Processes
Expense Billing
Expense Calculation and Billing
Capital budget
When the JU3BH_BILL Expense Billing batch job is run the system will read the Expense Rules for the Expense Types for which the Global Group Type is CAPITAL BUDGET in addition to the Expense Types currently included in the Expense Billing batch job.
Where there is a Rate Table Type on the Expense Rule and there is a value for Maximum on the Scale linked to the Rate Table, the Member expense will be calculated based on the Expense Rule and the Scale. If the value calculated is greater than the value for Maximum on the Scale, the calculated value will be set to the Maximum value.
Similarly if there is a value for Minimum on the Scale and the calculated value is less than the value for Minimum on the Scale, the calculated value will be set to the Minimum value.
If the Calculation Method is CAPITAL BUDGET, the system will retrieve the BT’s in the Member’s CAP BUDGET account with a Due Date greater than the first day of the current year. If no BT is found, a value will be calculated for the Membership and proportioned for the period from the Membership CAR Start Date to the last day of the current year as follows:
Calculated value / 12 x number of months from CAR Start Date to last day of current year
If the Global Group Type for the Expense Type is CAPITAL BUDGET, Business Transactions (BT’s) will be created with the MEMBERBUDGET Accounting Activity. A Fund level BT will not be created.