Fund Administration

Verso Financial Services currently has approximately R 17 billion in assets under administration using its own state-of-the-art, client-oriented fund administration system, developed in South Africa for the South African retirement fund environment.

Administration System

Retirement fund administration services are our flagship and the foundation on which the rest of the enterprise has been built.  The administration system is called Neuron.  It is the property of the Verso Group and it was developed extensively for the South African retirement fund market to ensure that it meets our strict requirements.

All of Verso’s system processes are workflow-driven, ensuring that each task must be completed within predetermined time frames.  Personnel are awarded increases and incentives in terms of their ability to meet these deadlines.  To ensure quality, system wizards control all system activity and direct personnel through each function, thereby ensuring uniformity in procedure and attention to detail.  These wizards cannot be circumvented.

Verso’s administration system, Neuron, has built-in standard letters which are automatically printed and stored electronically on the member’s record.  This ensures that we communicate effectively with our members.  Additional features include:

  • Functionality for both Defined Benefit and Defined Contribution requirements
  • A built-in pensioner payroll system
  • Integration with ACCPAC
  • Member Level Investment Choice
  • Document storage
  • Management of negotiated Service Levels
  • Internet and SMS facilities
  • Error Reports

Where we receive monthly contributions via an electronic file the system will interrogate the file and report anomalies.  Our system incorporates workflow and every process is forced to follow the same procedure to completion.  Data audit procedures are performed monthly to detect any data that appears suspect/irregular.

The system has too many validation checks to report here.  However, these are some of the checks and balances on the monthly contribution reconciliation:

  • Contribution does not correspond to the salary.
  • Arrear contribution does not correspond with the arrear salary increases.
  • No salary increase in more than 12 months.
  • Salary increase is more than x percent.
  • Nil contribution for members where there is no exit notification.
  • Duplicate members / employer reference number.
  • Fictitious date of birth / ID number and ID validation.
  • Missing information: address, contact numbers, personal details etc.
  • Change in surname.
  • Member contributing after a term of not contributing/possible break in service.
  • Salary has reduced.
  • Contributions received for members who are not on the system.
  • Total contributions do not balance with amount paid.
  • Voluntary contributions.
  • New members who previously exited the fund on disability.
  • Calculate risk premiums & process.
  • Calculate all fees & process

Fund Accounting

The fund accounting is done via the ACCPAC system.  Neuron and ACCPAC communicate via comma-delimited text files that run seamlessly in the background to create an integrated financial accounting capability.  There is a generic handshake between the financial system (ACCPAC) and the administration system (Neuron) which means that any changes made on the one system, will automatically reflect on the other system.  For month ends, the journals for the contributions are all automated. To the user it appears to be one and the same system.

The administration is essentially an accounting based system.  All system transactions that have a financial implication are written to a transaction file.  A system link will pass the transaction file to the financial system and all the transactions are then processed / assigned.

Document Management System

All documents are stored electronically in our Document Management System.  If Verso Financial Services (Pty) Ltd is appointed, you will be requested to cover the cost of converting and indexing your essential historical physical documents to an electronic format (if applicable).  This conversion of source documentation is optional.  There will be no cost if the former administrator can supply us with electronic source documents.  The advantages of electronic source documents are obvious to anyone who is serious about record keeping.  These electronic files will always remain the property of the client.  If the Fund accepts this offer then all ongoing scanning of certain new source documents received after the take on date will be scanned at no additional cost.

Disaster Recovery

We have disaster recovery contracts in place with our service providers.  We make extensive use of virtualization in our data centre.  This means that a database server can be replicated offsite as there is no dependence on a particular hardware platform. All our database files are stored in a redundant environment (SAN). The business continuity plan is reviewed annually by an outside consultant.

Backups

Backups are scheduled daily, and we store weekly, monthly and yearly back-ups offsite, indefinitely. Backups are sent to Metrofile on a daily basis and a copy of the backups is kept onsite, in a fire proof safe. Metrofile is considered to be one of the most secure storage facilities in Cape Town. We have procedures in place for collection and retrieval. No unauthorized persons have access to our sealed case.

System Access

The system offers our clients a number of options when it comes to system access: