Eskom Pension and Provident Fund Request for Proposal for the … · 2019-08-12 · Eskom Pension and Provident Fund ... this strategy, using this date as the baseline for planning

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Eskom Pension and Provident Fund

Request for Proposal for the provisioning of a technology solution/s for the Member Pension

Administration and Financial Management Systems for the Eskom Pension and Provident

Fund

Tender Closing Date and Time: 27 August 2019, 12h00 (GMT+2) Compulsory Briefing Session: 20 August 2019, 14h00 (GMT+2)

Request for Proposal (RFP)


Reference Data Definitions

The questions in this Request for Proposal can be classified into the following areas of consideration:

Functional Requirements

Strategic Strategic understanding of the responding organisation's proposed offering and alignment between the EPPFs Strategic Requirements and the responding organisation's strategic intent.

Company Understanding of the background, experience, and structure of the responding organisation.

Functional Understanding the level of functional alignment between the proposed offering and the EPPF's high level functional requirements for each of the capability areas identified as being key to the successful realise the EPPF's Target Operating Model.

Financial Understanding of the financial considerations and pricing options available to the EPPF for implementing, migrating to, and operating the proposed solution stack.

Non-Functional Requirements

Operational Understanding of the operational environment required to successfully deploy and manage the proposed offering, and the level of operational alignment with the EPPF's Target Operating Model.

Technical Understanding of the solution and technology architectures underlying the proposed offering.

Delivery Understanding of the delivery approach, methodology, guidelines applied by the responding organisation.



Table of Contents

1 Introduction ................................................................................................. 4

Membership and the office site ............................................................................................... 4

2 RFP Instructions ......................................................................................... 5

Point of Contact ...................................................................................................................... 5 RFP Process and Submission Procedure .............................................................................. 5 Submission of Proposals ........................................................................................................ 5 RFP Timelines ........................................................................................................................ 6 Site Visits, Respondent Presentations and Demonstrations Sessions .................................. 6 Rules ..................................................................................................................................... 6 Structure of Responses .......................................................................................................... 7

3 Evaluation Criteria ...................................................................................... 9

Price ..................................................................................................................................... 9 Empowerment / BBBEE .......................................................................................................... 9 Specific Technical Response and Experience ..................................................................... 10

4 Project Overview ....................................................................................... 11

Background ........................................................................................................................... 11 Project Objectives ................................................................................................................. 12

5 Requirements of Respondents ................................................................ 14

Company Details and Stability .............................................................................................. 14 Local Presence and Experience ........................................................................................... 14 Technical and Business Knowledge ..................................................................................... 15 Delivery Experience .............................................................................................................. 15 Support Organisation ............................................................................................................ 15 Project Management and Capacity ...................................................................................... 16 Supporting Documentation ................................................................................................... 16

6 Functional Requirements ......................................................................... 18

Architecture Requirements ................................................................................................... 23 Solution Business Requirements – Member Management .................................................. 53 Solution Business Requirements - Fund Accounting ........................................................... 62 Defined Contributions Requirements .................................................................................... 85

7 Reporting and Management Information Requirements ........................ 93

8 Non-Functional Requirements ................................................................. 97

Scalability .............................................................................................................................. 97 System Response Time and Availability .............................................................................. 98 Support ................................................................................................................................. 99 General Business Requirements ........................................................................................ 100

9 Implementation ....................................................................................... 106

Approach ............................................................................................................................. 106 Timeframes ......................................................................................................................... 106

10 Hosting .................................................................................................... 107

11 Pricing ...................................................................................................... 108

12 Appendix A – Declaration Form ............................................................. 111

13 Appendix B – EPPF Terms of Business ................................................ 112



1 Introduction The Eskom Pension and Provident Fund (EPPF) is a defined benefit fund with defined employer and employee contributions that provides retirement, withdrawal, death and disability benefits to members, pensioners, and dependants. The EPPF is registered as a privately administered pension fund in terms of the Pension Funds Act (1956) and it is approved as a pension fund in terms of the Income Tax Act (1962). EPPF currently is a financial services institution operating the retirement funds for Eskom and its subsidiaries. EPPF desires to potentially expand the business in four primary directions: ▪ offer their services to other businesses outside of its current scope.

▪ develop and broaden their product range to include other pension-related products.

▪ become more Customer focused or Customer-centric.

▪ Lower the cost of administration through process automation and integration.

The target date for implementation of the proposed solution by the preferred service provider is 30 April 2020, providing the EPPF with the opportunity to issue this respective RFP, aligned to the above four objectives. This RFP sets out what the bidder is expected to provide in the context of this strategy, using this date as the baseline for planning purposes. The strategy and its details continue to be confidential and the Respondent has an implied obligation not to share or do anything to promote the sharing of this information with any person or organisation of persons other than the EPPF.

Membership and the office site

The Fund, as at 30 June 2019, currently administers approximately 43,571 active members, 33,317 pensioners and 2,376 deferred pensioners. The EPPF head office is at EPPF Office Park, 24 Georgian Crescent East, Bryanston East, 2191. Approximately 115 people are employed by the EPPF on a permanent basis. The internet service provider provides the Fund with internet access through a 20mbps fibre link. However, the immediate plan is to increase the internet link to 100mbps and the backup link from 10 to 100 mbps.



2 RFP Instructions

Point of Contact

This RFP is issued on an open tender notice format with a definite closing date and time.

Respondents are required to submit their responses in expansive detail and in time to qualify for consideration of their responses.

In the interest of all parties concerned, all queries (if any) must be submitted in writing only and responses to queries or points of clarity will be published in the “Tenders” section of the Fund’s website (www.eppf.co.za). The closing date for questions/queries is 21 August 2019, 15h00 (GMT+2).

The electronic mail address for questions/enquiries is [email protected]. No telephonic or verbal queries will be entertained. Enquiries/questions sent to any address other than the aforesaid e-mail address will not be responded to.

RFP Process and Submission Procedure

Respondents must prepare a formal proposal to be submitted as per the instructions in paragraph below. The EPPF will review all proposals against a set of pre-defined criteria and rate each proposal on its ability to satisfy the requirements stated in the functional and technical requirements sections of this RFP. In the event where a preferred respondent is chosen the respondent will be formally notified. A formal contract will be negotiated with the preferred respondent and, if approved by the EPPF, the respondent will then begin implementation of the project.

Submission of Proposals

Proposals must be submitted to the EPPF in a sealed envelope addressed to “The Secretary of the Procurement Committee, Eskom Pension and Provident Fund” and placed in the EPPF’s official Tender Box situated in the reception area at the delivery address as provided below, no later than 12h00 (GMT+2) on 27 August 2019. The responses should be bound and packaged in such a way to ensure that the overall size of the submission/s does not exceed the size of an A4 Lever Arch file as this is the maximum size that can be accommodated by the tender box slots. Multiple packs may be submitted and should be clearly marked and numbered to ensure identification after the closing of the RFP. Proposals may not be faxed or emailed, and proposals received by any other means other than being placed in the tender box as aforesaid, will not be considered and will be rendered invalid. The tender box will be clearly marked “Administration and Financial Management Systems Replacement Project”. The RFPs must be placed in the Fund’s official Tender Box that is placed in the reception area at:

Isivuno House, EPPF Office Park, 24 Georgian Crescent East, Bryanston East, 2191.



RFP Timelines

The anticipated timelines for the tender process are as follows:

Activity Timeline

Distribute RFP Documentation 12 August 2019

Compulsory briefing session* 20 August 2019, 14h00 (GMT+2)**

Close of RFP queries1 21 August 2019, 15h00 (GMT+2)

Closing Date for RFP Responses 27 August 2019, 12h00 (GMT+2)

Respondent Demonstrations and Site Visits 3 – 13 September 2019

Notify Preferred Respondent 25 September 2019

*Please note: Dataflow Diagrams, Data Dictionary, Business Rules, Entity Relationship Diagrams, Functional Requirements will be distributed upon attendance of this briefing session, after signing a mandatory EPPF NDA

**Please note: Venue: Khumo House, Executive Boardroom, EPPF Office Park, 24 Georgian Crescent East, Bryanston East, 2152, Gauteng, South Africa

Alternatively, respondents may participate in the briefing session through:

Dial in: +27 86 200 0000 passcode 77725#

Please note that the above timelines are indicative; the EPPF reserves the right to change these timelines, and respondents will be advised of any changes and / or notices via email.

Site Visits, Respondent Presentations and Demonstrations Sessions

Scripted demonstrations will be conducted at the EPPF offices for respondents to have the opportunity to demonstrate their systems and showcase previous implementations. Respondents may be required to present their solutions to the EPPF on short notice.

Rules

To ensure good corporate governance and a transparent RFP process the following rules will apply:

i. Responses received after the date and time indicated will be considered late and will not be accepted. If a response is considered late, then the response will be returned unopened to the respondent identified on the response envelope. In the absence of a clear return address on the closed envelope, responses will be destroyed by the EPPF.

ii. Responses may be withdrawn in writing prior to the submission deadline.

iii. All enquiries are to be submitted in writing via email, to the indicated point of contact; no telephonic enquiries will be accepted.

iv. During this RFP process respondents may acquire confidential information relating to the EPPF’s business, project and / or customers. Respondents are always required to keep this

1 All questions and responses will be made available to all respondents who attended the briefing session.



information strictly confidential (even after the project has been completed). Respondents will not use or attempt to use it for personal gain or the gain of any other person.

v. Respondents should comply with the highest ethical standard in order to promote mutual trust and an environment where business can be conducted with integrity, in a fair and reasonable manner.

vi. Respondents must declare that information provided in all documentation is true and correct. Please refer to and use the declaration form in Appendix A.

vii. Respondents must declare that the signatory of the tender document is duly authorised in the format as required by the declaration form marked Appendix A.

viii. Respondents may disclose confidential information only to the extent that such disclosure is necessary for the submission of a formal proposal. This does not apply to information which must legally be disclosed or becomes available to and known by the public.

ix. Respondents will be held to their proposals submitted. The EPPF reserves the right to modify the particulars of any proposal mutually with the successful respondent in whole or in part.

x. Agreements reached after such modifications with the successful respondent, or parts thereof, and accepted by the EPPF will form part of the contract.

xi. Each proposal will be evaluated for general conformity to specifications and the capabilities of respondents to execute the project.

xii. Respondents shall provide curricula vitae of all key personnel they propose for execution of the tasks, with clearly defined fields of expertise, functions, and responsibilities.

xiii. Respondents are responsible for any and all costs and liability incurred in responding to this RFP. The EPPF will not be responsible for any costs whatsoever or howsoever arising. The EPPF reserves the right to withdraw this RFP for any reason and at any time without incurring cost or liability.

xiv. The EPPF reserves the right to withdraw, at any stage of this process, amend or cancel this request for proposal, reject any or all proposals, obtain any information from any lawful source regarding past business history and practices of the respondent, and to take any such information into consideration in the evaluation process.

xv. The EPPF reserves the right to accept any portion, or all, of a respondent’s proposal or not to accept any proposal at all and does not have to explain the acceptance or not of the proposal of any specific respondent and the EPPF’s decision is final and binding.

xvi. By responding to this RFP, respondents agree to be bound by the rules stated in this Section.

On appointment of a successful respondent, the standard EPPF terms of business, as attached and marked Appendix B, of the EPPF will apply.

Structure of Responses

To facilitate the analysis of responses to this RFP, all interested parties are required to prepare their response in accordance with the instructions outlined in this section. All proposals must be electronically generated, and the printed original must be signed in ink by individual(s) legally authorised to bind the respondents. Legibility, clarity, and completeness are important and essential. Respondents must provide one (1) clearly marked and signed original and ten (10) bound hardcopies of their complete proposal with the required supporting documents inserted at the appropriate places, as well as one (1) copy on a memory stick with all proposal materials provided in Adobe Reader Portable Document Format (PDF). A soft copy of the pricing must also be provided and saved as MS Excel on the memory stick. Respondents must ensure that the electronic submission is not infected with viruses.



Responses must be prepared as simply as possible (prepared in a word processing format then printed to PDF) and care must be taken to ensure that each question is answered in the same sequence as labelled, providing a straightforward, concise description of the interested parties’ capabilities and recommendations to satisfy the requirements of the RFP. Emphasis should be placed on accuracy, completeness, and clarity of content. All parts, pages, figures, and tables must be numbered and labelled clearly. The response must be organised as follows:

Section Title Reference to Section in this Document

A Executive Summary None

B Company Background 5: Requirements of Respondents

C Functional Requirements 6: Functional Requirements

D Reporting and Management Information Requirements

7: Reporting and Management Information Requirements

E Non-Functional Requirements 8: Non-Functional Requirements

G Implementation 9: Implementation

H Hosting Requirements 10: Hosting Requirements

I Pricing 11: Pricing

J Supporting Documents 5. Requirements of Respondents

Under section: Supporting Documentation



3 Evaluation Criteria

Respondents will be evaluated according to the extent to which they are able to fulfil the requirements of the EPPF, as stipulated in this RFP document. The evaluation criteria against which respondents will be evaluated will include, but are not limited to, the criteria contained in the sections below. Further, the various evaluation criteria will be weighted in terms of importance.

Price

To be quoted in ZAR and must be VAT inclusive. Proposals should be valid for at least 90 days. If prices are subject to exchange rate fluctuations, please indicate the assumed rates.

Empowerment / BBBEE

Details of the respondent’s BBBEE credentials inclusive of a certificate, if a rating has been carried out, must be clearly provided together with details of the company profile with specific reference to:

▪ Ownership and management:

Blacks

Total % Blacks

Non-Blacks Total %

Non-Blacks

Number

Male

% Male

Number Female

% Female

Number Male

% Male Number Female

% Female

Ownership structure and shareholding

Board representation

Management structure

Professional Staff

Administration and support staff

Physically challenged employees

▪ Provide details of other initiatives in support of BBBEE (e.g. percentage of training budget employed for EE skills transfer, social upliftment programmes, etc.).

▪ Provide details of Secondary BBBEE initiatives, for example procurement from BBBEE suppliers as a percentage of total procurement spend.

▪ For non-South African residents; A diversity and inclusion policy meeting the requisite standards, and statistics on the gender diversity and racial split.



Specific Technical Response and Experience

Respondents’ proposals shall be reviewed based upon the EPPF’s evaluation of several factors, which are listed in no order of importance:

▪ The proposed solution’s fit to the EPPF’s business and functional requirements.

▪ The respondent’s previous experience and technical ability in designing, developing, installing, maintaining, and / or operating similar solutions.

▪ The level of detail, responsiveness and demonstrated capabilities, as provided by the respondent in his proposal.

The EPPF will conduct site visits to designated existing or past clients of the short-listed respondents, to give respondents the opportunity to demonstrate their systems. It is therefore advisable for respondents to obtain permission from their clients to conduct site visits.

The successful respondent will be subjected to a due diligence exercise prior to being appointed. The EPPF reserves the right to accept all, some, or none of the RFP responses submitted – either entirely or in part.



4 Project Overview

Background

This is a Request for Proposal (RFP) about Pension Administration Systems (PAS) and Financial Management Systems (FMS). The Eskom Pension and Provident Fund (EPPF) is requesting proposals of PAS and FMS market offerings from providers as part of its drive towards becoming a member centric fund, a current strategic focus. A member centric organisation places the member and his / her needs at the centre of everything that it does. The objective of this RFP is to identify the most appropriate solution/s and/or services for addressing the Eskom Pension and Provident Fund (Fund) requirements to manage the administration of the Fund and realise the member centric strategies and servicing options. The Eskom Pension and Provident Fund (EPPF) is currently a defined benefit fund with defined employer and employee contributions that provides retirement, withdrawal, death and ill-health benefits to members, pensioners, and dependents. This RFP requires respondents to provide information about their offerings, as aligned to the below options:

1. Commercial Off-the-Shelf (COTS) Solution/s - This option implies that the solution will be

hosted on premise, on the EPPF’s infrastructure, supported and maintained by the EPPF, and backed by support agreements with the supplier. The EPPF will have the option to customise the solution to address unique business requirements. Risk management related with information security and disaster recovery will be addressed by the EPPF. This option is solely for the procurement of a COTS technology solution that addresses Retirement Fund Administration and Financial Management functions and the high-level functional requirements outlined in this document.

2. Software as a Service (SaaS) - This option implies that the solution may be hosted, supported, and maintained by the respondent. Customisation will need to be negotiated between the respondent and the EPPF as per agreed contract. Information security and risk requirements associated with disaster recovery will be addressed solely by the respondent. Alternatively, this option could be hosted by the EPPF, and supported and maintained by the respondent. Customisation will be negotiated between the respondent and the EPPF as per agreed contract. Information security and risk requirements associated with disaster recovery will be addressed jointly. This option would see the Fund subscribe to a cloud application service that is hosted on a private cloud (on premise) or on a public cloud, maintained and supported by the supplier.

Applicable legislation The Fund must comply with the following legislation, amongst others: ▪ Pension Funds Act 24 of 1956 ▪ Income Tax Act 58 of 1962 ▪ Divorce Act 70 of 1979 ▪ The Financial Institutions (Protection of Funds) Act 28 of 2001 ▪ Protection of Personal Information Act 4 of 2013 ▪ Financial Sector Regulation Act 9 of 2017 ▪ Rules of the Fund

The proposed system must provide for the following at a high level: ▪ An administration platform capable of supporting both DB and DC administration.



▪ An integrated platform for the management and processing of benefit claims for both DB and DC administration.

▪ The ability to manage multiple funds with appropriate data segregation and access federation capabilities.

▪ The ability to manage payroll functions for pensioners. ▪ The ability to manage member and pensioner data. ▪ The ability to automate payment instructions from the member administration system to the

General Ledger system. ▪ The ability to change parameters in system and not in source code. ▪ The flexibility to easily effect changes which may be due to changes in Fund rules. ▪ The ability to support legislative and regulatory compliance directives as listed above. ▪ Financial Management capabilities

Project Objectives

Once the Board of Trustees of the Fund and the EPPF have selected the selected application(s) or tool to be implemented and/or services to be provided it will enable the EPPF to reap the following benefits (but not limited to):

▪ Greatly improved member self-services options across digital channels, thereby empowering members to be as self-reliant as they choose to be. Allowing members to maintain personal information and increase flexibility to structure investment portfolios within the limitations of the Fund rules, with such changes implemented in the payroll system via integration.

▪ Increased fund administration process efficiency, transparency, and simplicity, easing the members experience and increasing their levels of trust towards the EPPF.

▪ Improved member data management and presentation formats that align to the member's personal information demands.

▪ Personalisation of member experiences according to each member needs and preferences.

▪ Implementation of an interoperable solution that provides the capability to seamlessly integrate with existing enterprise systems across the EPPF's current and future technology landscape, thereby eliminating inappropriate manual intervention.

▪ Provision of relevant dashboards as required by the Board of Trustees, its committee members and Fund members in order to access information that will assist them in decision making.



▪ Implement a modernised administration system to enable the Fund to keep abreast with a rapidly changing market and its preferences.

▪ Ultimately leading to an increase in member satisfaction.

As one of the largest self-administered funds in South Africa, the EPPF has the desire to provide the best possible service in terms of the IT platform supporting their retirement fund administration and financial management function.



5 Requirements of Respondents

Respondents should be well established entities that have been in business for a minimum of five years showing demonstrable experience in the pension fund administration industry. Respondents are required to indicate the period they have been in operation and must include supporting documents such as the ownership of the business, management structure and BBBEE credentials. EPPF needs a supplier that has appropriate experience in the South African market. It is preferable that the respondent be South African or has an established South African practice. Respondents must have sound pension fund administration industry expertise as well as knowledge of the regulatory and legislative environment of the Pension Fund industry in South Africa. The successful respondent should have a balance between technical and business knowledge. This will allow them to put forward an appropriate solution that fulfils the EPPF’s technical requirements as well as its specific business requirements.

Company Details and Stability

Please provide a response to each of the following questions.

i. Please indicate how long your business has been in operation.

ii. Describe the nature of your business, paying attention to core activities.

iii. What is the company’s registration number?

iv. Please provide the company structure and key project resources to be deployed to this project within the structure.

v. If the response to the RFP is made jointly, provide details on commercial relationships between the parties making up the consortium / joint venture / partnership. Respondents are required to provide the following information:

• Entity/s that will be guaranteeing contract performance;

• Date of Joint Venture formation, if applicable;

• The proposed name of the lead / prime contractor; and

• A statement regarding the nature of the agreement between Joint Venture Partners including the proposed percentage division of work and profit between the constituent members. Each party to the RFP, if that party is a subsidiary company, is required to give details of the extent to which the holding company and related subsidiaries and associates are prepared to provide guarantees.

Local Presence and Experience

1. Is your business headquartered in South Africa? If not, provide details of the head office

location

2. If the head office location is not in South Africa, also provide details of local company offices.

3. Provide the year of establishment of the South African business and the number of employees currently employed.

4. Provide examples of the company’s experience in implementing DB/DC administration systems within the South African Pension Fund industry.

5. Provide details of the key regulatory and legislative challenges faced by the Pension Fund industry in South Africa and which have shaped the development of your company’s solution.



Technical and Business Knowledge

i. Supply details of any established processes for advising customers on the use of the proposed system.

ii. Supply details of any measures in place to identify improvement opportunities for customers.

iii. Is your company active in any industry and standards setting forum? If so, please supply details of the extent of your company’s involvement.

iv. Does the proposed system allow for monitoring of compliance with legislative aspects of the system and releasing new versions when necessary? Please provide specific examples.

Delivery Experience

The EPPF will conduct reference site visits and therefore requires information regarding contactable clients that have deployed and are currently using the proposed solution. Include references of at least three recent DB/DC administration- and Financial Management systems implementations within the South African and/or international market/s, with similar applicable legislation as outlined in this document, in the following format:

▪ Client name.

▪ Contact details (telephone, fax, and email address),

▪ Responsible person.

▪ Project description (scope, size, number of users, budget, duration, and completion date).

▪ Summary of key lessons learnt, if applicable.

Please indicate whether the clients can be contacted directly by the EPPF as references.

Support Organisation

The respondent will be expected to provide support and maintenance services within the target times as defined in the table below. Please indicate whether your organisation will be able to meet the requirements by indicating “Yes” or “No” and provide a short summary of details as to how the requirement will be met.

Priority Code

Description of Code Response

Time Resolution Time

Meet Requirement?

1 Emergency – user site operations are at a standstill.

Respond to call within 1 hour.

Solve problem within 4 consecutive hours.

2 Very Urgent – user site still operational but deadlines are threatened due to certain malfunctions.

Respond to call within 2 hours.

Solve problem such that deadline is met if malfunction is due to system defect.

3 Urgent – user site operations still functioning. Solution to be provided according to user

Respond to call within 8 working hours.

Solve problem within mutually agreed upon deadline (between



requirements and deadlines.

client and respondent).

4 Not Urgent – but user deadlines should be considered.

Respond to call within 3 days.

Advise by when you will be able to resolve.

i. Can your organisation provide on-site or remote support services during core business hours between 08h00 and 16h45 (GMT+2) on weekdays?

ii. Can your organisation provide support outside the stated core business hours?

iii. Can your organisation guarantee 99,99% system uptime, during core business hours?

iv. Does your organisation offer customers any additional support services? If so, please supply details.

v. What service level management processes does your organisation currently have in place? Describe any frameworks, standards, and certifications, including certification body, in use at your organisation.

vi. Can your organisation meet the EPPF’s disaster recovery requirements with a recovery time objective of 24 hours?

vii. Will your organisation be able to manage 2 annual disaster recovery tests, 1 scheduled and 1 unscheduled?

Please note that the EPPF reserves the right to regulate the Service Level Agreement (SLA) using metrics of its choice and the SLA may also include segments to address a definition of services; performance measurement; problem management; warranties; disaster recovery, termination of agreement and desired percentage of system uptime.

Project Management and Capacity

In ensuring a successful rollout and addressing all business requirements, proper governance and project management measures must be in place during implementation and beyond. Respondents are, therefore required to provide detailed information on project management including:

i. Project management methodology and / or tools used at the organisation;

ii. Describe any applicable quality management frameworks, standards, and certifications, including certification body, in use at your organisation.

iii. Describe your approach to ensuring that the project is aligned with the EPPF’s business strategy and goals and takes all stakeholder requirements into account.

iv. Describe your approach to providing leadership and gathering support (at different organisational levels) in a bid to promote acceptance of the new solution by all stakeholders.

v. Describe your approach to ensuring the responsiveness of the new system to business requirements and the delivery of tangible business value by the project.

vi. Describe your approach to managing risk appropriately by overseeing the adoption and implementation of a control framework.

Supporting Documentation

The respondents must include the following supporting documentation within their proposals:

▪ Proof of Companies and Intellectual Property Commission (CIPC) company registration documentation.



▪ Audited financial statements for the most recent fiscal year (i.e. 2018 or 2019 depending on financial year-end), with one-year comparatives, accompanied by a signed audit report.

▪ Up to date Tax Clearance Certificate.

▪ Draft software license agreements.

▪ BBBEE credentials and relevant ratings from a Department of Trade and Industry approved institution, if applicable.

▪ For non-South African residents; A diversity and inclusion policy meeting the requisite standards, and statistics on the gender diversity and racial split.

▪ In the case of a Joint Venture the above-mentioned documentation need only be supplied for the guaranteeing entity.

▪ Please attach any product sheets and brochures that will provide details on your products.

▪ Signed declaration form contained in Appendix A.

Respondents shall be disqualified from the tender process if the abovementioned documents are not submitted. If any of the above-mentioned documents are expired and/or unavailable, please clearly indicate why this is the case and when the document/s can be expected to be received.



6 Functional Requirements

The necessity to provide for multi-fund administration capability has also compelled the move to acquire a more modern administration platform, including the capability to administer a Defined Benefit (DB) as well as a Defined Contribution (DC) fund structure.

Given the above background, the proposed system must provide for:

i. An administration platform capable of supporting both DB and DC administration.

ii. An integrated platform for the management and processing of benefit claims for both DB and DC administration.

iii. The ability to manage payroll functions for pensioners.

iv. The ability to manage member and pensioner database.

v. The ability to automate payment instructions from the member administration system to the General Ledger system.

vi. The ability to change parameters in system and not in source code.

vii. The flexibility to easily effect changes which may be due to changes in Fund rules.

viii. The ability to cater for legislative and system requirements such as Protection of Personal Information Bill.

ix. Financial Management capabilities

The above are explained in detail below by means of the below required future Enterprise Architecture (EA) roadmap and the associated capabilities (please see Diagram 1 – EPPF IT Blueprint)



Diagram 1 – EPPF IT Blueprint The entire architecture (IT Blueprint) is the foundation for the implementation of the EPPF’s strategy. Not all the capabilities on this diagram is relevant to this RFP however, please refer to only those systems capabilities highlighted on the diagram as follows:

Property of the EPPF

Date: August 2019

Version: Final

Channel Enablement

Channel Integration

Advanced Insights and Analytics

Enterprise Wide Capabilities

Organisational

Engineering and

Management

Strategy

to

Portfolio

Business

Intelligence

Call CenterEngage Portal/s Transact Portal/s

Fund Support Services

Member Management

Sales & Distribution

Fund Administration

Leads

ManagementQuoting Onboarding

Campaign

Management

Customer

Relationship

Management

Case

Management

Complaints &

Issue

Management

Human

Resources &

PayrollFinance Facilities

Supply Chain

ManagementGRC

IT

ManagementLegal

Money Management

Payment

Instruction

Payment

Engine &

Gateway

Management

Deposit

Account

Management

Payment

Order Admin

Account

Remittance

Statement

Management

Information

Security, incl.

IAM

Enterprise

Content

Management

(incl. Digital

Assets &

Forms)

Integration &

Process

Management

Fund

Analytics

Payment

Audit

Data

Management

Intermediary

AdminDistribution

Compensation

Billing

Needs

Analysis

Financial

Planning

Sentiment

Analytics

Member

Insights and

Analytics

Financial

Analytics

Member

Next Best

Offer

Analytics

Investment

Analytics

Reqt. to

Deploy

Detect to

Correct

Lin

e o

f B

usin

ess

Asset Management

EmployeeIndividual SupplierAdvisor Board MemberCorporate

Mobile TelephonyWWW MessagingChatBot

USSDSocial MediaEmail

Intermediatory Portal/s Employer Portal/s

Medical

History

Management

Member

Surveys and

Feedback

Consolidated

Portfolio

Management

Investment

Portfolio

Management

Contributions

Management

Benefits

Processing

Asset &

Liability

Management

Fund Admin

Rules

Pensioner

Payroll and

Tax

Management

Beneficiary

ManagementTrust

Administration

Fund Operations Datamart

Asset Portfolio

Management

Risk and

Exposure

Management

Investment

Mandate

Management

Market Data

Management

Deal

ManagementPerformance

Benchmarking

Investment

Administration

Rules

Member TrusteeRegulator Business Partner

Asset Management Datamart

Market

Analytics

Member

Education

Loyalty &

RewardsMember

Administration

Operational

Analytics

Strategic

Analytics

Pricing

Analytics

Portfolio

Reporting

Claims

Management

Investment

Accounting

Portfolio

Accounting

Liquidity

Management

Transaction

Management

Core

Capabilities

Required

EPPF Summary IT Blueprint – August 2019 – RFP Scope and Touchpoints Overlay

Online

Experience

Social Media

Management

Digital Analysis,

Insights and

Reporting

Omni-channel

EnablementAccessabilityDigital Profile

Digital

MarketingSEO RoboAdvice

Customer

Support

Secondary

Capabilities /

Integration

Points

Required

Capabilities

not in Scope

for this RFP



Core

Capabilities

Required

Secondary

Capabilities /

Integration

Points

Required

Capabilities

not in Scope

for this RFP

Below please find the Guidelines for responding to the Functional and Non-Functional Requirements of this RFP. Respondents are requested to indicate the following, as applicable, for each detailed requirement: 1. Indicate the appropriate response abbreviation as shown in the table below for each of the

requirements. Requirements with no response will be treated as ‘NA’ (not available). 2. Note any assumptions, considerations or limitations that might provide the EPPF team with

insight into the responses provided by the respondent. 3. Where applicable, identify the specific licenced product, module or add on that will meet the

requirement and indicate where possible deviation from standard product licencing might come into enforcement.

4. Provide further explanations, clarifications and, if applicable, alternate recommendations in the comments section.

Response Abbreviation Definition and criteria

Off the shelf OS Functionality exists, out-of-box, with no configuration or modification, and can be demonstrated at other client sites in South Africa or abroad.

Configurable CG

Functionality is met through configuration changes to the existing system, where ‘Configuration’ includes changes via administration consoles or changes to parameters within system configuration files.

Customisable CU

Functionality can be met through custom development, enhancements, or extensions to the base source code, implying future maintenance complexity that may require additional effort to upgrade, update or apply patches.

Product Roadmap

PR Functionality is not yet available out of the box but is on the product roadmap to be included in a future version of the product. Indicate timeframes and status of the product development item in question.

Add on Available

AO

Functionality can be provided by a third-party solution that has been included in the response. The solution has been deployed at other client’s sites and can be demonstrated upon request. Indicate where the functionality is an add on that will require integration effort and additional effort to upgrade, update or apply patches to.

Not available NA The system cannot provide functionality.



1. The Respondent’s solution must provide a customer focus to the business process.

In broad terms (but not limited to) the customer focus means providing the customer (member, pensioner, and eventually the beneficiary) more information about their pension, permitting the customer to submit appropriate information in a self-service, and permit the member or pensioner to make informed decisions through access to information and options.

2. The Respondent’s solution must enable process automation using technology.

The automation objective focuses on enabling more business processes (through workflow) to be more machine enabled, thus eliminating multiple capture of information, human error, and repetitive task with little or no business value.

3. The Respondent’s solution must provide business and business integration using

technology.

The integration objective focuses on the provision of structured information (including business transactions) across business streams. These business streams exist as separate business responsibilities within the Client, and 3rd party services provided in cooperation with the Client.

4. The Respondent’s solution must incorporate the use of processes and technologies that

support the business objectives of near-real-time processing.

The context of near-real-time processing is as follows: there is little or no significant time delay between the submission of a transaction for processing and the return or confirmation response. The expectation is that the Respondent’s solution will as far as is practical use technology to limit the time to complete a transaction in order to achieve a near real-time business experience.

5. The Respondent’s solution must incorporate the IFRS (International Financial Reporting

Standards) as it applies to the Retirement Funds Management service providers.

6. The Respondent’s solution must be compliant with and provides information in conformity

with regulation required by the Financial Sector Conduct Authority.

7. The Respondent’s solution must provide for the pre-funding of all financial transactions. The

implications are that all the funds needed for any financial transactions must already exist.

8. The Respondent’s solution can be easily configured to include additional clients (employer

funds) in the future.

9. The Respondent’s solution can be configured to include additional (pension-related)

products.

10. The Respondent’s solution can be configured to include additional 3rd party (pension-

related) products.



11. The EPPF is aware that in general most suppliers of Pension Fund Administration systems do not have or cannot provide a financial management and reporting functionality to the level of detail mentioned throughout this document, In such a case if no functionality can be provided please indicate financial management systems used by your current clients or if limited functionality can be provided indicate the additional third party systems that are used in conjunction with such system.



Architecture Requirements

Requirement Description Support Full Description of How Functionality Meets Requirements

OS CG CU PR AO NA

Channel Integration capabilities

This section refers to a need for an integrated channel architecture.

1. The Respondent’s solution must provide a Transact Portal. The Transact Portal provides self-serve capabilities that allow members to conduct their fund administration related business with EPPF.

2. The Respondent’s solution provides integration for the use of mobile devices The respondent is expected to provide mobile app support for the fund administration Transact Portal

3. The Respondent’s solution provides integration for the use of e-mails. e-Mail support is expected to be provided across all engaged solutions being considered (with varying amounts of custom development for each).

4. The Respondent’s solution provides integration for the use of USSD. The USSD solution will be dependent on many other common dependencies such as service enablement of the line of business systems as well as common integration and business services. It is considered critical for a consistent user experience across all channels.




OS CG CU PR AO NA

5. The Respondent’s solution includes integration to Call Centre Telephony. The expectation is that the solution can integrate with an IVR or call centre solution that will route calls (both inbound call centre calls and “Click-to-Call” calls and chats) within the call centre.

6. The Respondent’s solution includes integration to Engage Portal Provides foundational digital Portal capabilities that provide windows into enterprise information, IT Capabilities and processes. The Engage Portal provides capabilities that support engagement with known or unknown user in an unauthenticated manner. Once a user is authenticated that would be able to access the Transact Portal. Underlying Portal Capabilities are shared across all Portal types.

Channel enablement

This section refers to the need for a channel enablement architecture.

7. The Respondent’s solution provides for an Online experience. It’s expected that users are able to navigate a site via the web, mobile, or other digital channels. Typical aspects governing navigation are user role or claim, region, authorisations, user location and device.




OS CG CU PR AO NA

8. The Respondent’s solution incorporates Digital Profiling. This facility provides for functionality to view and manage customer profiles and account information, preferences, and other customer specific settings and information. This is expected to include the Registration process (the capturing of customer data such as: e-mail address, login name and password, preferred contact language, preferred contact method, details of next of kin, etc. The solution is expected to configure user preferences to provide a more tailored experience and to be stored within the digital profile.

9. The Respondent’s solution provides consideration for accessibility. Accessibility is expected to enable channels for partially sighted people. These features are typically client-side features presented by the operating system and browser. The user can utilise the digital platform providing content to increased font size or read using text readers.




OS CG CU PR AO NA

10. The Respondent’s solution provides for Customer Support. This facility is expected to manage the interactions between customers and front-office support staff to ensure that customers receive the desired support, problem resolution and that their feedback is taken into consideration for improving the retirement fund. This is considered an apex capability to provide oversight and to manage customer service for each unique channel of the fund. It’s expected to manage these activities on large-scale volumes of inbound and outbound customer contact calls. It’s expected to enable customers to interact on the full lifecycle of the customer journey.

11. The Respondent’s solution provides Omni-channel Enablement. Provides IT Capabilities that facilitate the seamless integration of all channels through the deployment of content from centralised content repositories to each channel with minimal customisation per channel. In addition this capability provides a seamless customer experience when moving between channels. The responsive design will enable the Engage and Transact solutions to function cross-channel in terms of portal and mobile. The content management solution specifically must be able to publish to other channels.

Data Management

This section refers to the need for a Data Management architecture.




OS CG CU PR AO NA

12. It’s expected that the Respondent’s solution must interface with ETL (Extract, Load, and Transformation) capabilities. ETL capability is the process for data extraction, transformation and loading during database use. It includes the following sub-processes: ▪ Extracting or retrieving data from external data

storage or transmission sources ▪ Transforming data into an understandable format,

where data is typically stored together with an error detection and correction code to meet operational needs,

▪ Transmitting, Loading data to the receiving end

13. The Respondent’s solution includes Reference Data Management. This facility is expected to manage the set of permissible values to be used by data fields. Reference data is expected to be managed when it’s widely re-used and widely referenced. Reference data is expected to be defined by standards organizations, such as country codes as defined in ISO 3166-1.

14. The Respondent’s solution mitigates the duplication of data through the centralised MDM (Master Data Management). MDM is expected to provide a comprehensive method of enabling the organisation to link all of its critical data to one data source, referred to as a master file, to provide a common point of reference.




OS CG CU PR AO NA

15. The Respondent’s solution includes DQM (Data Quality Management). DQM is an administrative facility that incorporates the role establishment, role deployment, policies, responsibilities, and processes with regard to the acquisition, maintenance, distribution of, and disposal of an organization's electronic data assets.

16. The Respondent’s solution includes DBMS (Database Management Systems). The DBMS is expected to define, manipulate, retrieve and manage data in databases, generally to: manipulate the data, the data format, field names, record structure and file structure, define business and data rules to validate and manipulate this data. It is expected that a fourth-generation query languages, such as SQL and associated capabilities, is used along with the DBMS solution and an accessible database schema etc

17. The Respondent’s solution includes Business and Operational Datamarts (Fund Administration) The datamart is a subject-oriented archive that stores data and uses the retrieved set of information to assist and support the processes involved within a particular business function. Datamarts are expected to exist within a single organizational data warehouse repository. The datamart is expected to improve end-user response time by allowing users to have access to the specific type of data they need to view by providing the data in a way that supports the collective view of a group of users.




OS CG CU PR AO NA

18. The Respondent’s solution includes Data Archiving. Data archiving is the process of retaining data for long-term storage. It is expected that some data may no longer be in use but can be brought into use and must be stored and accessible for future use.

Business Intelligence

The following requirements refer to the need for a Business Intelligence architecture.

19. The Respondent’s solution includes Data Visualisation. Data visualization is the process of displaying data or information in graphical form including (but not limited to): charts, figures and bars. In this form it is used as a means to deliver visual reporting business performance, operations or general statistics of an IT asset such as: application, network, hardware.

20. The Respondent’s solution includes Operational Reporting. Operational reporting is defined as reporting about business operations that reflects current activity and is expected to support the day-to-day business activities.

21. The Respondent’s solution includes Regulatory Reporting. It is expected that Regulatory Reporting be used to indicate and communicate compliance to the various regulations that apply to the Client, and to manage the risk of regulatory non-compliance. The regulatory reporting must address the regulatory framework that governs retirement funds management service providers in South Africa.




OS CG CU PR AO NA

22. The Respondent’s solution includes Data Mining. Data mining (also known as data discovery or knowledge discovery) is the process of analysing hidden patterns of data according to different perspectives for categorization into useful information, which is collected and assembled in common areas, such as data warehouses, for efficient analysis, data mining algorithms, facilitating business decision making. The Respondent’s solution includes Data Mining model as it applies to Retirement Funds management service providers.

23. The Respondent’s solution includes Investor Relations Reporting. The investor relations reporting capability draws on reports created by the Data and Insights capability to create final investor reporting, such as annual reports. It serves to provide existing and potential customers with the information they need to make a decision to invest with the retirement fund.

24. The Respondent’s solution includes Ad hoc Reporting Ad Hoc reporting allows for reports to be generated on request as and when needed.

25. The Respondent’s solution includes Trustee Reporting. The trustee reporting capability draws on reports created by the Data and Insights capability to report on all aspects of the Fund processes per transaction, with summaries and management information including financial management accounts on an accrual basis.




OS CG CU PR AO NA

Information Security

This section refers to the need for an information Security architecture.

26. The Respondent’s solution provides for Identity and Access Management. This capability is expected to integrate with the security services for Authorization (pension claims, rights, permissions, entitlements) by granting and denying access to users. Authorizations are expected to be by individual, claim, role or group level – depending on the product selected.

27. The Respondent’s solution provides for MFA (Multi-factor Authentication). MFA, a security mechanism that allows for individuals to be authenticated through more than one required security method and validation procedure and is expected to use a combination of physical, logical and biometric validation techniques to secure access to a facility, product or service.

28. The Respondent’s solution integrates with Digital Security Certificate Management. It includes the process for obtaining of security certificates; installing certificates and renewing certificates before they expire.

29. The Respondent’s solution provides for Directory Services Directory service is a customizable information store that functions as a single point from which users can locate resources and services distributed throughout the network. This customizable information store also gives administrators a single point for managing its objects and their attributes.




OS CG CU PR AO NA

Enterprise Content Management

This section refers to the need for an Enterprise Content architecture.

30. The Respondent’s solution incorporates Document Management. Document management is the process of storing, locating, updating, and sharing data for the purpose of workflow progression and business outcomes. It’s expected that centralized sharing and data storage will enable the organization to access information efficiently and effectively, along with securing protected data.

31. The Respondent’s solution incorporates RM (Record Management) or RIM (Records Information Management). Records management (RM) is a facility of business administration that involves protecting and maintaining the most valuable data sets involved in operations. This facility is expected to assist businesses to handle different kinds of paper and digital documents and resources for: Security, Access, General efficiency.

32. The Respondent’s solution includes Digital Content or DAM (Digital Asset Management). DAM is expected to manage all digital files produced by the enterprise and allow an organization to control and centralized management of digital content or data that is accessed or shared by users.

33. The Respondent’s solution includes Content Imaging. The process and technology whereby non-digital




OS CG CU PR AO NA

content is converted into digital content to achieve better storage and availability of the content.

34. The Respondent’s solution includes Forms Authoring. It’s a set of capabilities that support the design and generation of electronic forms (and templates) for use within the business cycle by the enterprise and its stakeholders.

35. The Respondent’s solution includes Forms Security. Forms security is expected to include the following (but not limited to) considerations: Location, user access, data sensitivity, physical or digital security, encryption, legislation and regulatory compliance.

36. The Respondent’s solution includes Forms Distribution. It is expected that electronic forms will be distributed to appropriate users, the channel of making the forms available for viewing or completing will be done according to roll-players involved.

Integration and Process Management

This section refers to the need for an integration and process architecture.

37. The Respondent’s solution includes an architectural layer dedicated to the integration of 3rd party service providers providing data and professional services to the Client.

The medical aid schemes and other insurers currently submit monthly deductions on a file via an SFTP server and these files need to be imported into




OS CG CU PR AO NA

the system to update deductions for the monthly payroll. Reconciliations are done on the new deductions VS previous month exceptions are confirmed with the scheme.

38. The Respondent’s solution includes Application Integration. The Respondent’s solution includes architectural layers that enable the integration of software applications and hardware systems.

39. The Respondent’s solution includes EII (Enterprise Information Integration) for integration. Enterprise information integration (EII) includes principles that combines enterprise data and information into a unique data monitoring interface where data is expressed via a uniform representation.

40. The Respondent’s solution supports SOA (Service Oriented Architecture) principles to expose business functionality to users and other systems. The expectation of the SOA layers is to provide fast, easy access to communication, and to operate among different applications with limited human intervention.




OS CG CU PR AO NA

41. The Respondent’s solution provides for BPA (Process Integration and Automation). BPA is a process of managing information, data and processes to reduce costs, resources and investment. BPA is expected to: ▪ be used to increase productivity by automating

key business processes through computing technology.

▪ be geared toward implementing software applications to automate routine business tasks through initiation, execution, and completion,

▪ provide enterprise-wide workflow efficiency.

42. The Respondent’s Solution provides for Business Rules Management. A rule management facility is a software system used to define, deploy, execute, monitor and maintain the variety and complexity of decision logic that is used by operational systems within an organisation or enterprise. This logic, also referred to as business rules, includes policies, requirements, and conditional statements that are used to determine the tactical actions that take place in business applications and systems.

43. The Respondent’s solution incorporates Enterprise Workflow. Workflow management application are designed for setting up and monitoring a defined set of tasks in sequence. It’s expected that users will through collaborating and automating processes, define workflows for different types of processes and applications. Workflow management is expected to reduce the manual tasks through automation.




OS CG CU PR AO NA

44. The Respondent’s solution provides for BAM (Business Activity Monitoring). BAM is the process of monitoring business activities through business process management software. Operations managers and upper-level management receive BAM reports in real time in order to assess business productivity. Business activity monitoring also ascertains whether systems are working to an optimal level. The BAM is also expected to provide for: ▪ the management of work queues, ▪ the allocation of workflow tasks to specific role-

players, ▪ the escalation of incomplete or delayed tasks.

45. The Respondent’s solution includes an integration layer that enables the exchange of transactions and data between their solution and an autonomous ERP (Enterprise Resource Planning) system: Accounting services.

46. The Respondent’s solution provides through the integration layer a host-to-host integration with an autonomous Employer (Clients Customers) HR systems. The expectation is that the Respondent’ solution is able to receive (host-to-host) submissions of employee information from the Employer (Clients Customers) HR systems for (among other functions): new member submissions, employee employment record and status, and contributions.




OS CG CU PR AO NA

47. The respondent’s solution can through the integration layer, submit journal transactions to be processed in an autonomous ERP accounting general ledger and other subledgers. The expectation is that the Respondent’s solution can submit general ledger (and other subledger) journal transactions for posting in the ERP solution.

This refers to posting of lumpsum payments and tax to the GL. The GL needs to be aligned to actual payments. Tax needs to reflect for the correct period i.e. when tax directive is granted not when the lumpsum is paid which can be late in a different financial year

48. The Respondent’s solution can through the integration layer, submit account queries on transactions in an autonomous ERP accounting and other subledgers. The expectation is that the Respondent’s solution can make queries in the ERP accounting solution regarding the presence (or absence) of accounting transactions. This refers to the ability to confirm that a payment received by finance into the GL matches what was expected by comparing it to for instance a tax directive from SARS

49. The Respondent’s solution can through the integration layer enable the exchange of transactions between their solution and an autonomous payroll solution. The expectation is that the Respondent’s solution can submit gross income (in the form of pensions) and other remuneration (such as bonuses) to the




OS CG CU PR AO NA

payroll system. This also pertains to taxes and journal entries

50. The Respondent’s solution can through the integration layer enable access to one or more of the payment gateways available in South Africa. The expectation is that the Respondent’s solution provides access to one or more payment gateways available in South Africa. The payments gate to be used in the way that they apply to the Retirement fund industry.

51. The Respondent’s solution can through the integration layer access one or more of the SMS and MMS services available in South Africa.The expectation is that SMS services will be used as a means of communicating with some categories of members. The SMS messages will be generated by the business applications and then submitted to the SMS service.

52. The Respondent’s solution can through the integration layer access services provided through the Department of Home affairs to retrieve personal details records. The expectation is that the Respondent’s solution will provide an integration capability to retrieve personal information to validate the accuracy of personal details provided. While this service does not yet exist in an online and real-time capability, the expectation is that when it is available in the future, that the Respondent’s solution is able to access this service in its current form and in its future form.




OS CG CU PR AO NA

Sales and Administration/Distribution and Sales

The following section refers to expectations for the architecture to support business capability: Sales Administration.

53. The Respondent’s solution includes business capabilities for on-boarding. The expectation is that the Respondent’s solution provides the capabilities that support a positive member onboarding experience while ensuring that all required information is collected and validated in accordance with fund rules or regulations while leveraging digital capabilities that reduce member friction.

54. The Respondent’s solution includes business capabilities for Leads Management. Managing the process of identifying, educating and engaging with prospective customers through the network of brokers and agents. The organization, tracking and management of prospective customers through the broker and agent network. It is an internal capability and provides support to third party intermediaries where allowable.

55. The Respondent’s solution includes business capabilities for Needs Analysis. Provides the necessary IT capabilities to support thorough understanding of the member's financial standing in order to identify gaps and opportunities to service the member's needs.




OS CG CU PR AO NA

Member Management

The following section refers to expectations for the architecture to support business capability: Member Management.

56. The Respondent’s solution includes Case Management. The expectation is that the solution provides capabilities that allow the retirement fund to sort, prioritise and archive a large volume of customer cases.

57. The Respondent’s solution includes Complaint and Issue Management. The expectation is that the solution provides capabilities that allow the retirement fund to field, prioritise, address and follow up on customer issues and complaints.

58. The Respondent’s solution includes Member Administration. The expectation is that the solution provides capabilities for managing a customer’s retirement fund offering throughout their lifecycle with the retirement fund to ensure optimal value for the customer and retirement fund trustees. This includes:§ the adjustment and refactoring of the offering to suit the customer and their needs at different stages of their customer lifecycle,§ Customer facing adjustments to the customer account information, § Payment process or administration of their policy.




OS CG CU PR AO NA

59. The Respondent’s solution includes Customer Relationship Management. Provides the IT capabilities that support the management of activities that impact the full customer lifecycle, including those that support retention of current retirement fund customers within the fund and exiting retirement fund customers as deferred pensioners

60. The Respondent’s solution includes Medical History Management. Provides the IT capabilities to track and manage the medical history of members, including the sourcing of medical assessments, where applicable, directly from medical practitioners (This information should be regarded as highly confidential and restricted to certain individuals of the EPPF). This refers to medical information for members applying for retirements due to ill-health or dependents applying for lifelong pension. Access to medical information must restricted to the Medical Panel and the Ill-Health administrator

61. The Respondent’s solution includes Member Surveys and Feedback. Provides the IT capabilities that enable simple, easy member survey setup, distribution and tracking in order to gain insights into opportunities to continually improve the member experience and Fund's performance.

Advanced Insights and Analytics

The following section refers to expectations for the architecture to support business capability: Advanced Insights and Analytics.




OS CG CU PR AO NA

62. The Respondent’s solution provides Member Insights and Analytics. The expectation is that the solution provides specialised member insights and analytics utilising the data management and business intelligence foundational capabilities together with specialised services, such as member social network analysis, to further gain insight into member needs, behaviours, and concerns.

63. The Respondent’s solution includes Financial Analytics. It is expected that financial analytics is the creation of ad-hoc analysis to answer specific business questions and forecast possible future financial scenarios. It can be used to speed up the creation of reports and present the data in an executive dashboard, a graphical presentation for easier reading and interpretation than a series of spreadsheets with pivot tables.

Fund Administration

The following section refers to expectations for the architecture to support business capability: Fund Administration.

64. The Respondent’s solution includes Contributions Management. The expectation is that the solution provides capabilities that support the receipt and processing of customer contributions against customer account pre-retirement. It includes: ▪ Payments processing, ▪ Linked accounting capabilities, ▪ Administration of the status of the balance of

contributions per retirement fund customer. ▪ Back-end accounting of contributions.




OS CG CU PR AO NA

65. The Respondent’s solution includes Claims Management. The expectation is that the solution provides the capabilities that support: ▪ The management of claims, ▪ Claims queries, ▪ Requests for claim adjustments relating to

benefits, ▪ Claims investigations, ▪ A back-end where the accounting of the claims is

maintained. ▪ The provisioning for accrual system ▪ Refers to accrual of benefits when a pension is

suspended for whatever reason and to accrual of benefits from say an exit date while processing takes place. On reinstatement or activation of a pension the benefits will be paid as arrears

66. The Respondent’s solution includes Benefits Processing. The expectation is that the solution provides capabilities that support the processing of benefit payments to members or pensioners or their nominated beneficiaries.




OS CG CU PR AO NA

67. The Respondent’s solution includes Pensioner Payroll and Tax management. The expectation is that pensioner payroll and tax management will include (but not limited to): ▪ Payroll capability appropriate to pensioners. ▪ Calculate the tax obligation for deductions ▪ Process a range of other deductions usually done

from the payroll such as: medial aid, life cover and funeral policies.

▪ Process the payment of the net pension payable, other deductions, and tax obligations to the respective entities.

▪ Provide a range of reporting appropriate to pensioner payroll activities.

68. The Respondent’s solution includes Installment Lumpsum Administration. The expectation is that the solution provides capabilities that support the management of Installment Lumpsum entities used by the Fund to distribute lumpsum benefits to nominated minor beneficiaries.

69. The Respondent’s solution includes Asset and Liability Management. The expectation is that asset and liability management is the process of managing the use of assets and cash flows to reduce the organisation’s risk of loss from not paying a liability on time. The cash flow module will need to be able to pull market values of underlying fund assets at a specified date, taking into account actuarial assumptions, and project any possible negative impacts to the cash flow statement for the said period.




OS CG CU PR AO NA

70. The Respondent’s solution includes investment accounting. The expectation is that investment accounting is for the purpose of investment management that includes (but not exclusively): ▪ Accounting entries on the purchase of any

investments inclusive of purchase expenses such as stamp duty, commission, and brokerage,

▪ Accounting on sale of investments and credited with net realized value of investment,

▪ Allocation of interest and dividend received on investments

71. The Respondent’s solution includes Benefit Management. The expectation is that the solution provides support to administer, track and validate member nominated beneficiaries.

72. The Respondent’s solution includes Fund Administration Rules. The expectation is that the solution provides capabilities that support the centralised maintenance of business rules management for Fund Administration.

73. The Respondent’s solution includes a Fund Operation Datamart. The expectation is that the solution provides capabilities to enable and manage a datamart that serves the fund operations objectives.




OS CG CU PR AO NA

74. Investment Portfolio Management. Provides the IT capabilities that support the ability for the member to manage and monitor the investment of their contributions into their Fund's investment portfolio. Includes the ability interact with the Fund's investment team and service providers to supporting functions such as investment switching, unitisation management, etc.

75. The Respondent’s solution provides Portfolio Reporting. Provides IT capabilities that support official reporting of portfolio performance to investors or regulatory bodies in the form of annual reports or minimum disclosure documents, such as Fund Fact Sheets.

76. The Respondent’s solution provides Portfolio Accounting. The expectation is that the solution provides specialised member insights and analytics utilising the data management and business intelligence foundational capabilities together with specialised services, such as member social network analysis, to further gain insight into member needs, behaviours, and concerns.

Money Management

The following section refers to expectations for the architecture to support business capability: Money Management.

77. The Respondent’s solution includes business capabilities for Payment order administration. The expectation is that the Respondent’s solution provides business capabilities for the administration of payment orders placed on their bank for the payment of creditors.




OS CG CU PR AO NA

This refers to the ability to send out a payment (ACB) file through the bank interface this is for both payroll payments and creditor payments for 3rd parties such as medical aid schemes or insurers

78. The Respondent’s solution includes for the use of electronic Payment Instructions. The expectation is that the Respondent’s solution provides payment instructions using electronic payment technologies as they apply to the pension management industry.

This refers to the ability to send out a payment (ACB) file through the bank interface this is for both payroll payments and creditor payments for 3rd parties such as medical aid schemes or insurers

79. The Respondent’s solution includes Payment Engine & Gateway Management. The expectation is that the Respondent’s solution provides business capability for the administration and management of a payment gateway.

80. The Respondent’s solution includes Deposit Account Management. The expectation is that the Respondent’s solution provides for the management of deposit accounts as it applies to the retirement industry.




OS CG CU PR AO NA

81. The Respondent’s solution includes the processing of payment remittances. The expectation is that the Respondent’s solution provides business capabilities for the electronic processing of the receiving of payment remittances and the allocation of the payments to previously recorded payment obligations (applies to both finance and payroll systems)

Ability to reconcile what was expected and what was actually received applies to contributions from employers, employer portion of deductions such as medical aid and transfers form other funds

82. The Respondent’s solution includes business capabilities for money management billing. The expectation is that the Respondent’s solution provides for the management of billing for money management facilities provided by banks and other financial institutions. This refers to the ability to invoice Employers for their portion of deductions such as medical aid, insurance etc

83. The Respondent’s solution includes Statement Management. The expectation is that the Respondent’s solution provides for the automated processing (import and allocations processing) of transactions that appear on bank statements. Monthly bank statements from EPPF are high volume




OS CG CU PR AO NA

84. The Respondent’s solution includes Payment auditing. The expectation is that the Respondent’s solution provides business capabilities for regular audits of payments executed. The process includes providing traceability from payment origin to destination.

Finance The following section refers to expectations for the architecture to support business capability: Finance.

85. The Respondent’s solution includes Accounting facilities. The expectation is that the Respondent’s solution provides general accounting capability and finance capabilities to maintain fund master data in reference to support general enterprise accounting practices.

86. The Respondents solution includes Financial Modelling. The expectation is that the Respondent’s solution provides financial modelling to enable: ▪ the assessment and support of performance -

analyse past fund performance and provide management information support for improvement of future business performance (business analytics) including KPIs against budget and prior periods,

▪ support to management the improvement of business performance, commercial cost management and cost (expense) management including, (but not limited to): performing overhead allocations,

▪ support of product costing, production of management expenses splits for use in business, financial modelling (cost per member, cost per policy, product, etc.),

▪ maintenance of expense split allocation models.




OS CG CU PR AO NA

87. The Respondent’s solution includes Group Financial Management. The expectation is that the Respondent’s solution supports finance to manage continual cost reduction and tracking of cost and service competitiveness with regular peer comparisons.It is expected that this capability includes technical expertise on accounting matters, as they refer to the retirement funding industry including: ▪ IFRS (General accounting and financial

statement preparation), regulatory reporting disclosures and technical) and asset valuations,

▪ Maintenance of group accounting policies ▪ Monitoring, communication and lobbying on

international and local accounting developments

88. The Respondent’s solution includes business capabilities for a General Ledger. The expectation is that the Respondent’s solution supports and manages the general ledger as it applies to retirement funds management. It is expected to support (but not limited to) the following: ▪ Bank accounts - Process Payments and Record

payment of expenses and fixed assets, ▪ Accounts Receivable record keeping, ▪ Accounts Payable record keeping and

administration of expenses and fixed asset purchases,

▪ Respondent and fixed asset balance register account reconciliations, respondent ledger account reconciliations,

▪ Fixed assets register reconciliations.




OS CG CU PR AO NA

89. The Respondent’s solution includes Financial Reporting.The expectation is that the Respondent’s solution assists in the production of financial statements to disclose the fund’s financial status to management, investors and the government. It includes the following (but not exclusively): ▪ Perform management reporting to internal

stakeholders –; Analyse Performance and KPIs against budget and forecast,

▪ Prepare and distribute management reports, ▪ Compilation of earnings for fund,§ Compilation of

management information data for internal reporting,

▪ Evaluate and distribute management information reports.The expectation is that this reporting is largely automated and delivered using paperless (electronic) technologies provided in the Business Intelligence architecture.

90. The Respondent’s solution includes business capabilities for Travel and Expense Management. The expectation is that the Respondent’s solution provides travel and other related expense administration: ▪ travel desk administration in the form of booking

of travel and accommodation, ▪ Process travel and accommodation claims, ▪ Mobile phone and 3G administration, ▪ Disbursement of out of pocket expense cash (or

credit card) advances, ▪ Receive and process Reimbursement Requests

such as: petty cash, credit card payment, ▪ Issue audit and document expense reports.




OS CG CU PR AO NA

91. The Respondent’s solution includes Budgeting.The expectation is that the Respondent’s solution supports the coordination of the budgeting process to provide financial stewardship for the enterprise. It is expected to: ▪ Monitor and authorise investment spending, ▪ Reconcile actual expenditures with the budget

allocations, ▪ Develop and consolidate fund budget plans for all

enterprise KPIs,§ Develop business capital and capital requirement budget plans,

▪

92. The Respondent’s solution includes Fixed Asset Management. The expectation is that the Respondent’s solution supports fixed asset management the systematic process of deploying, operating, maintaining, upgrading, and disposing of assets cost-effectively within the enterprise. The term includes the management of investments on behalf of others.

93. The Respondent’s solution includes Tax Management. The expectation is that the Respondent’s solution provides capabilities for tax calculation, reporting and analysis. It includes the following: ▪ Build and maintain tax models, ▪ Calculate Tax Deferrals and Provisions, ▪ Advise on tax impacts of the fund actions.




OS CG CU PR AO NA

94. The Respondent’s solution includes a Finance Datamart. The expectation is that the Respondent’s solution provides a Finance datamart, a subject-oriented archive that stores finance data and uses the retrieved set of information to assist and support the requirements involved within a particular business function or department.

Solution Business Requirements – Member Management

The Respondent’s solution is expected to address the business process objectives that are incorporated under business capability: Member Management. The expectations for the objectives generally described and set out in the architecture and are to be implemented with the business processes. EPPF has embarked on a process to discover (within their current processes) opportunities (with process improvement in mind) and they are set out in the business processes below. Many processes addressed are currently manual in nature and have been nominated for varied degrees of automation and therefore process improvement. The business processes also provide information about what processes and data currently exists and provide insights into the planning and data involved in the migration effort required for transfer to the future solution. The business processes are provided in the form of standard operating procedures that give expression to the EPPF’s limited knowledge of how its strategy can influence their processes and the use of technology. They also provide solutions to limitations experienced in the current solution. They therefore provide a sense of the minimum requirements rather than definitive requirements. The Respondent is expected to incorporate the process improvements expressed and any others that are revealed. This Respondent’s solution must provide support for the management of activities that across the full customer lifecycle, including but not limited to the processes mentioned in this section.




OS CG CU PR AO NA

Solution Business Processes Requirements for Member Management-On-Boarding

The onboarding process refers to the take on of new members to the fund. Currently new members are submitted to the form of employment records from the Employer’s HR (Human Resources) systems.

95. The Respondents solution processes member personnel (or HR employment records) from an employer.

96. The Respondent’s solution includes a process to add new or re-instated employees.

97. The Respondent’s solution includes a process to update member personnel (Employer employment) records to provide a history of employment activities.

98. The Respondent’s solution includes a process to update the member’s contact details.

Solution Business Processes Requirements for Member Management-Pension Contribution

99. The Respondent’s solution includes a process to receive notification of member contributions from the employer payroll system. The process identifies the retirement deduction in various categories including employer contributions.




OS CG CU PR AO NA

100. The Respondent’s solution includes a process to acknowledge the transfer of retirement funds from another fund.

101. The Respondent’s fund includes a process permitting the member to notify the fund of a pending divorce settlement.

102. The Respondent’s solution includes a process that permits the member to withdraw funds in compliance with a divorce order of the court.

Solution Business Processes Requirements for Member Management-Withdrawal

103. The Respondents solution includes a process that provides for the withdrawal of a member before reaching retiring age.

Solution Business Processes Requirements for Member Management-Early Retirement

104. The Respondent’s solution includes a process to provide a pension for a member according to the retirement fund rules who qualifies for early retirement.




OS CG CU PR AO NA

Solution Business Processes Requirements for Member Management-Ill-health retirement

105. The Respondent’s solution includes a process to establish a pension wants to retire early due to ill health

Solution Business Processes Requirements for Member Management-Death during Employment Service

106. The Respondent’s solution includes a process to establish a pension for the beneficiary of a member who has died in employment service.

107. The Respondent’s solution includes a

process to pay out lumpsum benefits to beneficiaries. The process after a death in service, divides the lumpsum payment that would have been paid out to the pension on retirement amount the qualifying beneficiaries.

Solution Business Processes Requirements for Member Management-Normal retirement

108. The Respondent’s solution includes a process to provide a pension for a member according to the retirement fund rules who qualifies for normal retirement.




OS CG CU PR AO NA

Solution Business Processes Requirements for Member Management-During Retirement

109. The Respondent’s solution includes a process that provides for the suspension of a pensioner and their pension. The process suspends the pensioner’s pension payments pending the outcome of an investigation.

110. The Respondent’s solution includes a process that provides for the re-instatement of the pension and their pension. The process re-instates the pensioner’s pension payments depending on the outcome of an investigation.

111. The Respondent’s solution includes a process that provides for the termination of the pension and their pension. The process terminates the pensioner’s pension payments depending on the outcome of an investigation.




OS CG CU PR AO NA

112. The Respondent’s solution includes a process to amend the pensioners beneficiary list.The process includes a facility to amend the list of beneficiaries once a pension has been established following an in investigation into the circumstances of the need to amend the list of beneficiaries.The process includes a facility to remove children dependents from the beneficiary list once they reach adulthood and no longer qualify as a beneficiary.The process includes the change of children beneficiaries to permanent dependents upon the outcome of an investigation into the circumstances requiring it.

113. The Respondent’s process includes a process to change the status of a beneficiary to a life-long pensioner. The process permits a beneficiary to submit a request to become a life-long pensioner. An investigation is conducted, If the investigation concludes that the request has merit according to the fund rules, they are able to claim a pension as a permanent beneficiary.

Solution Business Processes Requirements for Member Management-

114. The Respondent’s solution includes a process to provide for a pension for the beneficiaries of a pensioner that has died.




OS CG CU PR AO NA

Death of a Pensioner

115. The Respondent’s solution includes a process whereby the pensioner’s beneficiaries can submit evidence of survival of proof. The process provides for pensioner beneficiaries to start claiming a pension after the death of a pensioner.

116. The Respondent’s solution includes a process that records the pensioner’s change of banking details. The process accepts changed banking details and replaces the existing banking details assigned to the pensioner or beneficiary.

117. The Respondent’s solution includes a process that records the change of beneficiary and guardian. The process permits the updating of the pensioner’s pension beneficiary (and guardian) list as a result of an investigation. This process includes the complete review of the beneficiaries and their associated information.




OS CG CU PR AO NA

118. The Respondent’s solution includes a process that records the change of beneficiary’s guardian. The process permits the updating of a beneficiary’s (and guardian) as result of a request and the outcome of a subsequent investigation.

Solution Business Processes Requirements for Member Management-Beneficiary Pensions

119. The Respondent’s solution includes a process to transfer a portion of a lumpsum payment to minor beneficiary that have not yet reached the age of maturity. The process provides for when the pensioner has died before the start of the pension, the portioning of the lumpsum payment and the transfer of the funds to a trust fund to be held for them until the age of maturity.

120. The Respondent’s solution includes process to pay out a minor beneficiary installment lumpsum upon reaching maturity. The process pays out the value of the installment lumpsum when the minor beneficiary has reached the age of maturity.

121. The Respondent’s solution includes a process to process advance payments against a installment lumpsum account. The process permits the minor beneficiary to request advance payments against their installment lumpsum account before reaching the age of maturity.




OS CG CU PR AO NA

Solution Business Processes Requirements for Member Management-End of Pension

122. The Respondent’s solution includes a process whereby a pensioner’s records can be archived. The process provides (after the pensioner and all their beneficiaries have died or left the fund) for: ▪ The archiving of the pensioner records

including all contribution and payment transactions to be transferred to an online archive, and

▪ Any profit or loss is transferred to the appropriate accounts.



Solution Business Requirements - Fund Accounting

Requirement Description Support Full Description of How Functionality Meets Requirements OS CG CU PR AO

Fund Accounting - General Ledger

123. The Respondent’s solution includes a process for: General Ledger Reconciliations The expectation is that the Respondent’s solution will provide for: General Ledger Reconciliations.

124. The Respondent’s solution includes a process for: General Ledger Reconciliation for Human Resources.

The expectation is that the Respondent’s solution will provide for: General Ledger Reconciliations involving transactions from a HR (Human Resources) solution.

125. The Respondent’s solution includes a process for: Fixed Asset Reconciliation

The expectation is that the Respondent’s solution will provide for: General Ledger Reconciliations involving transactions from a HR (Fixed Assets) solution.

126. The Respondent’s solution includes a process for: Medical Aid Monthly Reconciliation.

The expectation is that the Respondent’s solution will provide for: ▪ General Ledger Reconciliations involving

transactions from a Medical Aid solution. ▪ Medical aid deductions and payroll ▪ Manage contributions, tax credits and

deductions linked to payroll process flow.




127. The Respondent’s solution includes a process for: Retirements Benefits Reconciliation

The expectation is that the Respondent’s solution will provide for: General Ledger reconciliations for transactions from the Member Management Retirement benefits.

128. The Respondent’s solution includes a process for: Update of GL (Journals).

The expectation is that the Respondent’s solution will provide for: generic journal entry functionality, for example: Debit, Credit and descriptions and dates, and post to specific financial periods.

129. The Respondent’s solution includes a process for: Monthly Close.

The expectation is that the Respondent’s solution will provide for: processing of all journal entries, reversal of relevant accruals, systematic transactions and generate a pro-forma trial balance.

130. The Respondent’s solution includes a process for: Quarterly or Year End Close.

The expectation is that the Respondent’s solution will provide for: processing of all journal entries, reversal of relevant accruals, systematic transactions and generate a pro-forma trial balance for a specific period.




Fund Accounting - Financial Reporting

131. The Respondent’s solution includes a process for: Variance Reports.

The expectation is that the Respondent’s solution will provide for: functionality to allow the user to select different timelines and variables to compare financial information.

132. The Respondent’s solution includes a process for: Variance Report – Budgeting.

The expectation is that the Respondent’s solution will provide for: functionality to allow the user to select different timelines and variables to compare financial information between the General Ledger and a budgeting sub-system such as IDU. The primary object will be to reconcile balances.

133. The Respondent’s solution includes a process for: Variance Report – Spend Management.

The expectation is that the Respondent’s solution will provide for: functionality to allow the user to select different timelines and variables to compare financial information between the General Ledger and a spend management sub-system such as Fraxion.




134. The Respondent’s solution includes a process for: Variance Report - Annual Financial Report.

The expectation is that the Respondent’s solution will provide for: functionality to allow the user to select different timelines and variables to compare financial information between the General Ledger and a FSCA financial reporting sub-system such as CaseWare in Excel or CSV format with any relevant mapping functionality.

135. The Respondent’s solution includes a process for: annual Audit

The expectation is that the Respondent’s solution will provide for: the generation of trial balance and other reporting with detail sufficient to fulfil the requirement of an audit.

136. The Respondent’s solution includes a process for: Updating of Cash Flow.

The expectation is that the Respondent’s solution will provide for: generate a cash flow statement for a specific period.




Fund Accounting - Cash Management

137. The Respondent’s solution includes a process for: Reconciliation – Bank accounts.

The expectation is that the Respondent’s solution will provide for: bank accounts reconciliation between the General Ledger (Cash Management) and bank account statement as provided by Standard Bank. The expectation is that the Respondent’s solution will provide for: bank accounts reconciliation between the General Ledger (Cash Management) and bank account statement as provided by ABSA for payroll payments.

138. The Respondent’s solution includes a process for: Import ACB File Report.

The expectation is that the Respondent’s solution will provide for: the import of payment confirmations from an ACB file for bank and payment confirmation.

Fund Accounting - Procurement

139. The Respondent’s solution includes a process for: RFP (Request for Proposal).

The expectation is that the Respondent’s solution will provide for: the preparation of RFP for the authorised procurement of goods and services.




140. The Respondent’s solution includes a process for: The Procurement Process for capital items.

The expectation is that the Respondent’s solution will provide for: ▪ the preparation of purchase orders for the

procurement of authorised goods and services,

▪ Create and monitor construction cost planning and control,

▪ Administer and manage construction contracts and amendments,

▪ Assign and manage critical project resources.

▪




141. The Respondent’s solution includes a process for: Expenditure management subsystems.

The expectation is that the Respondent’s solution will provide for: expenditure on (including but not exclusively): travel, accommodation and training that is managed outside of the Procurement process. this refers t the Fraxion System.

Fund Accounting - Fixed Assets

142. The Respondent’s solution includes a process for: Fixed Asset Addition.

The expectation is that the Respondent’s solution will provide for: the addition of newly acquired fixed assets.

143. The Respondent’s solution includes a process for: Fixed Assets Disposal.

The process is expected to implement the Fund’s policy for the disposal of fixed assets such as (but not exclusively): ▪ Furniture, Fittings, Office Equipment and

Vehicles, ▪ Computer Hardware and software. ▪ This is described in process: Fixed Assets

Disposal Policy (Furniture, Fittings, Office Equipment and Vehicles)

144. The Respondent’s solution includes a process for: Fixed Asset Transfer.

The expectation is that the Respondent’s solution will provide for: the transfer of assets between business entities within the enterprise.




Fund Accounting - Accounts Payable

145. The Respondent’s solution includes a process for: Supplier Payments.

The expectation is that the Respondent’s solution will provide for: creditor payment of service providers managed through cost management subsystems such as Fraxion.

146. The Respondent’s solution includes a process for: Approval of Journals and AP's.

The expectation is that the Respondent’s solution will provide for: Normal Journal entry process with ability to map and create approval and journal entry rules for specific transactions.

147. The Respondent’s solution includes a process for: Accounts Payable – Creditors.

The expectation is that the Respondent’s solution will provide for: payments to creditors.

148. The Respondent’s solution includes a process for: Accounts Payable - Third Party Payments

The expectation is that the Respondent’s solution will provide for: single or once-off payments to non-accounts payable (creditors for which there is not an on-going relationship with the Fund) or general creditors.




149. The Respondent’s solution includes a process for: Electronic Payments.

The expectation is that the Respondent’s solution will provide for: a process to submit payment to creditors by submitting EFT (Electronic Funds Transfer) payment using: ▪ the ACB payment submission service. ▪ the Standard Bank BOL Platform payment

submission services.

150. The Respondent’s solution includes a process for: Retirement Fund payments – International or cross-border Pensioners.

The expectation is that the Respondent’s solution will provide for: payments to cross-border pensioners to be made in International payments, and multi-currency.

151. The Respondent’s solution includes a process for: Retirement Fund payments – Death Benefits Reconciliation. The expectation is that the Respondent’s solution will provide for: the payment of death benefits payments and reconciliation.

152. The Respondent’s solution includes a process for: Retirement Fund payments - Divorce Benefits Reconciliation. The expectation is that the Respondent’s solution will provide for: the payment divorce settlement benefits payments and reconciliation.




153. The Respondent’s solution includes a process for: Retirement Fund payments - Withdrawal Benefits Reconciliation. The expectation is that the Respondent’s solution will provide for: the payment divorce settlement benefits payments and reconciliation.

154. The Respondent’s solution includes a process for: Retirement Fund payments - Trust Account Reconciliation. The expectation is that the Respondent’s solution will provide for: trust payments and reconciliation.

155. The Respondent’s solution includes a process for: Retirement Fund payments - Annual Benefits reconciliation. The expectation is that the Respondent’s solution will provide for: annual benefits payments and reconciliation.

156. The Respondent’s solution includes a process for: Retirement Fund payments - Unclaimed Benefit Account Reconciliation. The expectation is that the Respondent’s solution will provide for: (Year-End) Unclaimed Benefit payments and reconciliation.

157. The Respondent’s solution includes a process for: Daily Filing Process. The expectation is that the Respondent’s solution will provide for: the update of Member and Pensioner Records with Proof of Payments. This process includes: backup and batch updates of customer / supplier records and generating a variance report.




158. The Respondent’s solution includes a process for: Tax Payments to SARS. The expectation is that the Respondent’s solution will provide for: TAX payments and reports with possible integration to SARS.

159. The Respondent’s solution includes a process for: AA88 - Statistics and Payment Process. The expectation is that the Respondent’s solution will provide for: AA88 Tax Statistics and Payment.

160. The Respondent’s solution includes a process for: IT88 Payments. The expectation is that the Respondent’s solution will provide for: IT88 Payments Payment.

Fund Accounting - Accounts Receivable

161. The Respondent’s solution includes a process for: Update Receipts or Allocation Processing. The expectation is that the Respondent’s solution will provide for: the receipt of payment allocations and the matching of payment with Debtors in Accounts Receivable.

162. The Respondent’s solution includes a process for: Transfers from Other Funds. The expectation is that the Respondent’s solution will provide for: the receipt of member contribution funds transferred in from the other funds.

Fund Accounting - Taxation

163. The Respondent’s solution includes a process for: Tax Directives Download. The expectation is that the Respondent’s solution will provide for: the download of SARS tax directives in electronic form.




164. The Respondent’s solution includes a process for: Tax Directive Changes. The expectation is that the Respondent’s solution will provide for: applicant to SARS for the changing of SARS tax directives

165. The Respondent’s solution includes a process for: SARS Bi-Annual Submission. The expectation is that the Respondent’s solution will provide for: the bi-annual submission of SARS reporting as it applies to financial services organisations.

166. The Respondent’s solution includes a process for: SARS Annual Submission. The expectation is that the Respondent’s solution will provide for: the annual submission of payroll data SARS reporting as it applies to financial services organisations.

167. The Respondent’s solution includes a process for: Tax Enquiries. The expectation is that the Respondent’s solution will provide for: for tax enquiries by members and pensioners.

168. The Respondent’s solution includes a process for: Tax Queries. The expectation is that the Respondent’s solution will provide for: for tax queries from SARS.




169. The Respondent’s solution includes a process for: Update of Yearly Tax Rates. The expectation is that the Respondent’s solution will provide for: update of pensioner tax tables to be used to calculate tax obligations at pension payment.

Fund Accounting - Other

170. The Respondent’s solution includes a process for: Accounting Services Financial Management. The expectation is that the Respondent’s solution will provide for: the synchronisation of financial and accounting data to possible autonomous system performing accounting services financial management such as tax planning and enhanced cash flow or budgeting applications.

171. The Respondent’s solution includes a process for: Archiving of document at an off-site store.

The expectation is that the Respondent’s solution will provide for: ▪ Identification of documents and ▪ provides for the archiving of documents to

an off-site location service provider, currently Metrofile

▪ Integration with Metrofile storage instruction software.




172. The Respondent’s solution includes a process for: Extraction of Historical Documents.

The expectation is that the Respondent’s solution will provide for: ▪ The extraction of historical documents

from the Metrofile ▪ The searching and extraction of pension

records from the Scanco system.

173. The system must allow for Accrual accounting

Retirement Fund Accounting - Member Management Backoffice

174. The Respondent’s solution includes a process for: Divorce Benefit.

The expectation is that the Respondent’s solution will provide for: ▪ The (journal) transfer of funds from

member or pensioner to the divorced spouse.

▪ Payment of the (separated) fund to the divorced spouse.

175. The Respondent’s solution includes a process for: Arrears Processing.

The expectation is that the Respondent’s solution will provide for: the processing of arrears payment for pensions including for multiple households and dependents. The process will also create Provisions and accruals and the respective reversal.




176. The Respondent’s solution includes a process for: Activation of Pensioner on Payroll.

The expectation is that the Respondent’s solution will provide for: the creation of payroll records with integration to the payroll process flow.

177. The Respondent’s solution includes a process for: Lumpsum Benefit Payment.

The expectation is that the Respondent’s solution will provide for: the payment of lumpsum benefits through the pension payroll.

178. The Respondent’s solution includes a process for: Unclaimed Benefits.

The expectation is that the Respondent’s solution will provide for: ▪ The calculation of beneficiary funds

impacted by the unclaimed benefit requirement.

▪ The calculation of the income tax impact. ▪ The issuance of a tax declaration. ▪ The payment of funds back to the

employee.




179. The Respondent’s solution includes a process for: Evidence of Survival Reinstatements.

The expectation is that the Respondent’s solution will provide for: ▪ Upon receipt of an Evidence of survival

form, ▪ Conduct an audit to validate the evidence, ▪ check for changes in details ▪ process the reinstatement of members for

payroll payments.

180. The Respondent’s solution includes a process for: Death of a Pensioner.

The expectation is that the Respondent’s solution will provide for: ▪ Calculate the tax impact. ▪ Change status of payroll recipient. ▪ Update master file records. ▪ Trigger a Notification.

181. The Respondent’s solution includes a process for: Death of a Widow.

The expectation is that the Respondent’s solution will provide for: ▪ Calculate tax impact. ▪ Change status of payroll recipient. ▪ Update master file records. ▪ Trigger Notification.




182. The Respondent’s solution includes a process for: Death in Service.

The expectation is that the Respondent’s solution will provide for: ▪ Calculate tax impact. ▪ Change status of payroll recipient. ▪ Update master file records. Trigger

Notification.

183. The Respondent’s solution includes a process for: Death of a Deferred Pensioner.

The expectation is that the Respondent’s solution will provide for: ▪ Calculate tax impact. ▪ Change status of payroll recipient. ▪ Update master file records. Trigger a

Notification.

184. The Respondent’s solution includes a process for: Additional Dependents.

The expectation is that the Respondent’s solution will provide for: ▪ Calculate tax impact. ▪ Change status of payroll recipient. ▪ Update master file records. ▪ Trigger a Notification.




185. The Respondent’s solution includes a process for: Change of Guardian.

The expectation is that the Respondent’s solution will provide for: ▪ Calculate tax impact. ▪ Change status of payroll recipient. ▪ Update master file records. ▪ trigger a Notification.

186. The Respondent’s solution includes a process for: Tax Recovery on Death of a Pensioner.

The expectation is that the Respondent’s solution will provide for: ▪ Calculate tax impact. ▪ Change status of payroll recipient. ▪ Update master file records. ▪ Trigger a Notification.

187. The Respondent’s solution includes a process for: Pensioner Bonus.

The expectation is that the Respondent’s solution will provide for: ▪ Calculation of bonus, tax deductions and

pay-out process and ▪ link to the bank recon for payroll. ▪ Trigger a notification.




188. The Respondent’s solution includes a process for: Annual Pensioner Increases.

The expectation is that the Respondent’s solution will provide for: ▪ Calculation of bonus, tax deductions and

pay-out process, ▪ link to the bank recon for payroll. ▪ Trigger a notification.

189. The Respondent’s solution includes a process for: Early Retirement Recovery Process.

The expectation is that the Respondent’s solution will provide for: ▪ Invoice (Debit Note) to the employer for

the balance contributions where agreed, ▪ Receive payment, ▪ Process (journal) contributions as

contributions to the early retirement member.

190. The Respondent’s solution includes a process for: Pension Rejection and Unclaimed Pension Process.

The expectation is that the Respondent’s solution will provide for: ▪ Identification of rejected or unclaimed

pensions. ▪ Process journals to transfer (residual or

deficit) funds to fund profit.




191. The Respondent’s solution includes a process for: Maintenance Benefits - Manual Payment.

The expectation is that the Respondent’s solution will provide for: ▪ Insert payment deduction for pensioner. ▪ Process payment to receiving entity.

192. The Respondent’s solution includes a process for: Query Handling.

The expectation is that the Respondent’s solution will provide for: a query facility enabling the query of benefit (Non-Tax) Queries from Members and Pensioners.

Retirement Fund Accounting - Payroll

193. The Respondent’s solution includes a process for: Cash Request.

The expectation is that the Respondent’s solution will provide for: Benefit Payments - Non-Admin payments in cash




194. The Respondent’s solution includes a process for: Fund Request Process.

The expectation is that the Respondent’s solution will provide for: the payment of installment lumpsum account in advance of the installment lumpsum maturity. The process sis as follows: ▪ A payroll income from the fund that

provides for additional funds requested ▪ Calculate the income tax impact, ▪ Pay the tax to SARS, ▪ Pay the difference to the beneficiary.

195. The Respondent’s solution includes a process for: Withdrawal Process.

The expectation is that the Respondent’s solution will provide for: ▪ Calculate the value of funds contributed, ▪ Calculate the income tax impact ▪ Pay tax to SARS ▪ Pay the balance to the beneficiary.

196. The Respondent’s solution includes a process for: Medical Aid Credit or Refund.

The expectation is that the Respondent’s solution will provide for: The refund of a beneficiary for claims made against the pension fund.




197. The Respondent’s solution includes a process for: Medical Aid Processing.

The expectation is that the Respondent’s solution will provide for: the processing of claims against the medical aid.

198. The Respondent’s solution includes a process for: Medical Aid Reconciliation.

The expectation is that the Respondent’s solution will provide for: the reconciliation of payment, deductions and refund transactions between the payroll and the medical aid.

199. The Respondent’s solution includes a process for: Medical Aid Recovering.

The expectation is that the Respondent’s solution will provide for: the recovery of funds from the employer in cases where the medical aid contributions are subsidised by the employer.

200. The Respondent’s solution includes a process for: Medical Aid Updating.

The expectation is that the Respondent’s solution will provide for: the updating of medical aid membership (personal) records where this information has changed.




201. The Respondent’s solution includes a process for: Medical Aid Updates.

The expectation is that the Respondent’s solution will provide for: ▪ The automated monthly medical aid tariffs

as and when they apply, ▪ The automated of Yearly Tax Rates as and

when they apply, ▪ Effect medical aid deductions and payroll

integration.

202. The Respondent’s solution includes a process for: Ad-hoc Deduction Process.

The expectation is that the Respondent’s solution will provide for: create mapping rules for Income and Expenses.

203. The Respondent’s solution includes a process for: Payroll Tax Checking.

The expectation is that the Respondent’s solution will provide for: the automated checking of tax obligations against a particular set of circumstances.

204. The Respondent’s solution includes a process for: Quarterly Benefits.

The expectation is that the Respondent’s solution will provide for: ▪ The provision of a benefits accrued

quarterly to the beneficiary, ▪ The calculation of the income tax impact, ▪ Payment of tax to SARS, ▪ Payment of the balance to the beneficiary.




205. The Respondent’s solution includes a process for: Generation of ACB Files & Payslips.

The expectation is that the Respondent’s solution will provide for: ▪ The generation of electronic payments in

favour of beneficiaries from the payroll system.

▪ The automated submission of the electronic payments using the ACB submission service in time for due date payment.

▪ The distribution of pension payslips to beneficiaries.

Defined Contributions Requirements

Respondents are required to provide their responses in the tables provided. Include a full description of how the solution supports the stated requirement. The ability of the solution to meet or support the requirement is based on the following scale:

Requirement Description Support Full Description of How Functionality Meets Requirements OS CG CU PR AO NA

i. Investment Strategy

206. The ability to load and manage the investment strategy as mandated by the Investment Management Unit on a fund level




ii. Contributions Management

207. Receive, reconcile, load, and allocate: ▪ Contributions due to the fund per contribution,

member category and choice. This includes AVCs.

▪ Section 14 transfers onto the individual member records and reserve accounts if any, per category of contribution and per member’s or employer’s investment choice.

▪ Temporary absence as per draft DC rules of the fund.

208. Update the accounting transactions in the ledger.

iii. Unitisation 209. The system must allow for unitisation. Integrated allocation of units / negative units at daily unit price for the amounts received per member to the member’s individual records and reserves, where applicable, per the member’s or employer’s investment choices

iv. Investment and Disinvestment of Funds

210. The system must allow the member money to stay invested while Section 14 is being processed or to be disinvested to the bank account where bank account return is earned depending on the trustee’s decision to remain invested or not.

211. The system should allow this allocation of additional interest from the bank account to be turned on or off per transaction process.

v. Allocation of Investment Returns and Reconciliation of Asset Managers

212. These values should be able to be extracted per member and reserve to show the fund liability at any point in time including values held in the bank account for members.




vi. Switches (Individual and Bulk)

213. Members should be able to review their investments and be able to switch all or a percentage of their previous accumulated contributions or change the investment of their future contributions, within 24 hours of having been elected, and reinvested less any administration fees that may be required to be deducted at the unit price on the day of the disinvestment and investment and the individual member’s records appropriately updated.

214. The fund must also be able to select an entire portfolio and switch all the investments whether they relate to a reserve account or an individual member to another new or existing portfolio, or a combination of these, per reserve account or individual member via one transaction.

vii. Benefit Types: 215. Link to a tax interface for tax approval and record the tax payable against the benefit.

▪ Withdrawal 216. Allow for liens to be deducted, preferably automatically, linking these where liens are recorded on the system.

▪ Retrenchment 217. Allow for approval and payment with tax details being provided to the IRP5 production system or within the system, and the IRP5 number being recorded on the system if transferred.




▪ Retirement – Voluntary, Ill Health and Late

218. On notification the claim should link to the work tracking system creating work, or if notified in the work tracking system, link to the administration system to create the initial exit process.

▪ Death – Active and Deferred Pensioners

219. Calculate the benefit in terms of the rules based on the unit price on the date of notification.

▪ Disability 220. The balance of the benefit should be able to be paid to an annuity provider.

221. Allow for the receipt and addition of insured benefits.

222. Initially flag a member as electing to become paid up and freeze data record.

223. Calculate the maximum commutation allowed by the rule and legislation and present for selection to the user.

224. Allow for payments to multiple households in the case of death.

viii. Transfers 225. Receive and load individual transfer amounts received onto the individual member records.

226. Allow for the selection of all members in a transfer out, to be grouped.

227. Transfer benefits calculated as per the rules (accumulation basis).




ix. Transfers Received Section 14 (Section 14 of the Pension Funds Act 24 of 1956)

228. Transfer schedules to be produced for Section 14 application process.

229. On receipt of approved Section 14, allow for bulk payment of the remaining members who have not exited, with the individual record being appropriately updated with the transfer details.

x. Unclaimed Benefits

230. Taxation must be performed immediately.

231. Once the tax is paid the benefit should be recorded as unclaimed on the system and reported as such.

232. If invested on notification the claim should be switched to the bank account ready for payment.

xi. Payroll Based Payments (e.g. Risk)

233. Based on contribution or salary received by the fund calculate risk premiums for various risk categories (GLA – Group Life Assurance, PHI – Permanent Health Insurance, Disability, Spouse cover etc.) and administration fees if applicable and present these for payment.

234. The amounts should be checked and then paid via EFT through the system to the relevant bank account after it has been signed off.

235. These expenses should be allocated to a fund reserve or the member record or both, in the administration system and ledger.




xii. Ad Hoc Fund Expenses

236. The capability should allow for the inputting of fund expenses (for example audit fees, legal fees, trustee expenses etc.) for payment.

xiii. Reversals 237. Contributions, Units, Benefit claims, and Expenses.

xiv. Home Loans from Fund

238. The system should allow for the granting of home loans from the fund.

239. These must be created per individual member and allow for interest to be charged at a rate declared by the trustees.

240. The system should calculate the repayment amount over the period specified by the fund and allow these repayments to be allocated to the record to reduce the outstanding amounts.

241. The system should allow for ad hoc repayments and advances and should check that the loan does not exceed the maximum value defined by the trustees on the benefit elected by the trustees, usually the withdrawal benefit, when granted and after each monthly payment is made.

xv. Home Loan Guarantees

242. Amounts need to be recorded on the system to reflect any home loan guarantees that the fund should enter.

243. When a home loan lien is entered onto an individual record the system must not allow the payment of the claim unless an amount is entered for settlement.




244. If possible, the outstanding amount should be updated each month with an interface file from the relevant bank.

xvi. Other Liens (e.g. Divorce Orders)

245. Amounts need to be recorded on the system to reflect any liens that may be recorded against an individual member’s record.

246. When a lien is entered onto an individual record the system must not allow the payment of the claim unless an amount is entered for settlement.

247. The system should be able to extract and report on these liens.

xvii. Year-end Financial Statements

248. The system and ledger system accounting must be in such a manner that the production of the year-end financial statements can be disclosed without having to process unnecessary journal entries to obtain the necessary disclosure as required by the new format financial statements.

249. The system should also allow for a year end "roll over" and re-opening where once the financial statements are signed and the financial year on the system is closed, that these records cannot be changed and the records are archived for storage purposes, and that there is a view access of these records for queries, and that all adjustments post this "roll over" and re-opening happen in the current period.




xviii. Member Communication

250. Produce new entrant certificates, installment lumpsum certificates, payment letters, transfer certificates and member statements from the administration system for each individual member at a transaction detail level.

xix. Trustee Reporting

251. Report on all aspects of the above processes per transaction, with summaries and management information including financial management accounts on an accrual basis.

xx. Data Maintenance

252. Reference is drawn to all requirements as per Section 6.1.3 – Data Maintenance will apply to the required DC functionality.

xxi. Pensioner payments

253. Reference is drawn to all requirements as per Section 6.1.4 – Pensioner Administration and Payroll will apply to the required DC functionality.



7 Reporting and Management Information Requirements

Management has reporting requirements that stem from a need to monitor activities within the organisation and address legislative requirements. There are weekly, monthly, and annual reports that management require.

i. Comment on the proposed system’s standard reporting capability and functionality?

ii. Does the proposed system have a standard set of reports? If so, please describe these briefly.

Managers also need to be able to produce custom reports that may be requested by the Board of Trustees at any given time. These reports must be parameter-driven and historical reports must be available. The flexibility to enable reports to run automatically once specific processes have been completed must be considered. Standard reports required by the EPPF are listed in the table below; please indicate the extent to which the proposed system will be able to support these requirements.

Requirement Type of Report Frequenc

y

Support Full Description of How

Functionality Meets Requirements

OS CG CU PR AO NA

i. Reconciliations Summary of benefit payments made for the month (members and pensioners).

Monthly

ii. Contributions Accepted versus received amounts.

Monthly

iii. Claims Value of claims from pensioners and members per category.

Monthly

iv. Member Movements and Reconciliation Report

Report that monitors members at the beginning of the month by category type (pensioners, deferred pensioners,

Monthly




y



OS CG CU PR AO NA

active members) to membership at end of month.

v. Pensioner Movements

Death of pensioners (number per month).

Monthly

vi. Changes in Policies

Changes made to medical aid and insurance policies.

Monthly

vii. Pensioner Payroll

Exception reports before final payroll run to be made available based on criteria specified, e.g. cases where deductions exceed pensioner earnings, etc.

Monthly

viii. Summary and Overall Number of Changes made to Member and Pensioner Details

▪ Status changes (active, inactive, or suspended).

▪ Static information (address, marital status, ID number etc.).

Monthly

ix. Value of Benefit Payments

▪ Payments received and rejected (with reason).

▪ Unpaid benefits.

▪ Deferred payments.

Monthly




y



OS CG CU PR AO NA

▪ Lump sum payments.

▪ Withdrawal benefits (resignation or dismissal).

▪ Withdrawal due to retrenchment.

x. Value of Retirement Payments

▪ Early retirement.

▪ Normal retirement.

▪ Ill health retirement.

Monthly

xi. Performance Management

Number of claims received and processed.

Weekly and a monthly summary

xii. Ageing of Claims

Time taken to resolve claims.

Weekly and a monthly summary

xiii. Number of Tax Certificates Issued

▪ IRP5.

▪ IT88 – cheque requisition for SARS.

Annual

xiv. Site Run Run global exception report for the applicable tax period which assists in checking accumulations and months on payroll are accurate for prior

Annual




y



OS CG CU PR AO NA

generation of tax certificates.

xv. Actuarial Reports

Statutory valuation and analysis of the fund’s activities.

Annual



8 Non-Functional Requirements

Scalability

The system must be scalable and should therefore be based on modern, but well-proven, architecture and technology.

Requirement

Support Full Description of How Functionality Meets

Requirements OS CG CU PR AO NA

i. Does the system have architecture that allows for scalability (modular set-up)?

ii. Does the system allow for further growth and / or modifications?

iii. Does the system allow for scalability with regards to additional system functionality?

iv. Does the system allow for scalability with regards to the size of database(s) and transaction volumes? Please indicate volume limits.



System Response Time and Availability

Requirement



i. Does the system allow for fast and efficient turn-around times on all administration transactions?

ii. Is system data available to users 100% of the time on a real time basis?

iii. Is the system available on weekdays, during core business hours?

iv. Can system maintenance that encompasses scheduled downtime be announced in advance?

v. Does the system allow for fast and efficient turn-around times on all administration transactions?



Support

In order for the EPPF to sustain efficient customer service, the respondent will be required to provide the service level that sufficiently supports the EPPF’s business at an optimal fee structure. Service Level Agreements (SLAs) will be signed to record a common understanding of desired support services, priorities, responsibilities and guarantees and may specify, the levels of availability, serviceability, performance, operation, and other attributes such as penalties in the case of violation of the SLA.

i. Respondents must indicate what service level management processes their organisations currently have in place.

Requirement



i. Does the system have an easily accessible online help facility and / or call centre support?

ii. Is support available 24 x 7?

iii. Is the help facility context sensitive?

iv. Does the system provide records and documentation of system and support processes?



General Business Requirements

Please respond to the following open-ended questions in-line with the headings stipulated below.

Q. Software licensing and maintenance and support agreements

Should the service provider utilize proprietary or third party software to provide the services, the specific details of the licence terms which the EPPF may be required to agree to are to be disclosed and the service provider is to confirm if it is required that such software licenses will be concluded directly with the original licensor or is the service provider authorized to licence such software (such as by way of a sub-licence arrangement) to the EPPF.

The specific support and maintenance arrangements and its terms and conditions relating to such third party or proprietary software should be specified.

A.

Q. Transition Period

What will the expected duration of the transition period be upon the Agreement becoming effective, if this will be applicable? Please advise details.

Please provide comprehensive details of the transition services that will be provided. In this regard, please specify what the Service Provider's obligations will be.

Please provide details on the typical milestone events that the Service Provider will aim to achieve during the transition period. In this regard, please identify what the critical deliverables will be in relation to these milestones.

Please provide details of the acceptance testing procedures that will be applicable during the transition period.

What reporting will be provided during the transition period? Please specify.

It is expected that Service Provider must commit to specific critical deliverables during the transition period and that failure to achieve these and other milestones and deliverables will be subject to an appropriate penalty being levied against the Service Provider. Please provide your proposal in this regard.

Will the Service Provider provide EPPF with progress reports on the progress of the completion of the transition services during the transition period?

A.



Q. Equipment and facilities used to provide the services

Please provide comprehensive details on the infrastructure, equipment and facilities that will be used by the Service Provider to perform the services. Such details should pertain to equipment, infrastructure, resources, systems and software that will be utilised by the Service Provider and the security and other facilities applicable to the physical premises from which the services will be provided.

Please clarify if the EPPF data will be processed and/or hosted and stored on cloud infrastructure or physical infrastructure located at Service Provider's premises. Will the EPPF data be processed on standalone equipment or shared infrastructure? Please advise details.

Please specify the level of functionality and operating capabilities in respect of all of the equipment, systems and software used to provide the services.

Please detail the specific requirements as regards integration into the EPPF environment, if relevant.

Please specify commitments in regard to additions or improvements to the equipment and facilities during the term of the Agreement, including refresh cycles etc.

Please specify whether the Service Provider will make use of any third-party equipment and facilities during the term of the Agreement. If so, please state the terms and conditions that will be applicable to the use of such third-party equipment and facilities.

A.

Q. Cost Reduction

Please specify the cost-saving systems, methodologies and technologies that the Service Provider will implement and utilise in order to reduce the overall direct cost of the services to EPPF.

Please indicate whether the Service Provider anticipates any price increases over the term of the Agreement.

Please indicate whether the Service Provider will be willing to notify EPPF and/or obtain EPPF's consent before it acquires, maintains, upgrades or replaces any of its assets or equipment which it utilises in order to provide the services.

A.



Q. Subcontracting

Please indicate whether the Service Provider will provide any of the services through any subcontractors. It is expected that EPPF will need to consent to any sub-contractors prior to them being engaged by the Service Provider to provide any of the services.

If the Service Provider utilises any subcontractors, please indicate the measures that the Service Provider has in place in order to supervise the activities and performance of such subcontractors.

A.

Q. Intellectual property

It is expected that all new intellectual property created as part of the services, including any bespoke modifications or enhancements to the Service Provider's software or systems shall be owned by EPPF. Further the ownership of the intellectual property in relation to EPPF's data and databases or reports or any other literary work relating to EPPF data or information will vest and remain vested with the EPPF.

A.

Q. Relationship management and governance

Please provide details on the Service Provider's general relationship management practices and policies.

Please provide details on the type and frequency of any regular meetings which EPPF will be required to arrange and attend in order to address issues relating to the management of the services, including in respect of relevant governance forums to be established to manage the services under the Agreement.

A.

Q. Audit rights

It is expected that the Service Provider commit to allowing EPPF (which will include allowing EPPF and its auditors and inspectors) unrestricted access to the Service Provider's premises, operations, facilities, information, databases or computer systems and to all of the EPPF data, information and records in the Service Provider's possession for purposes of carrying out an audit exercise.

Please provide details on the Service Provider's position with regard to providing EPPF's auditors and inspectors with all required assistance and co-operation.

Please provide details on the consequences which may ensue should any audit reveal non-compliance on the part of the Service Provider and/or a material inadequacy or deficiency in the Service Provider's performance.



A.

Q. Changes in applicable laws

Please provide details on the measures which the Service Provider shall take in order to monitor and keep EPPF informed of any changes in applicable laws which may impact the services and the Service Provider's business.

A.

Q. EPPF data and personal information

Please provide comprehensive details on the confidentiality policies, practices and measures which the Service Provider has in place and which will be applied to EPPF's data and personal information.

Please indicate whether the Service Provider will disclose or otherwise make available EPPF's data and personal information to any third parties (including subcontractors).

Would any EPPF data be transferred outside of South Africa, either directly or indirectly? If so, please provide details.

Please provide comprehensive details on the general policies, practices and measures which the Service Provider has in place and implements in relation to its compliance with applicable data protection legislation.

Please indicate the measures which the Service Provider has implemented in order to identify and safeguard against all reasonably foreseeable internal and external risks to which EPPF's data and personal information may be exposed.

Please indicate the measures which the Service Provider has implemented in order to regularly verify that the safeguards which the Service Provider has in place have been effectively implemented and to update same in line with increased or changed risks to the Service provider's business and in respect of EPPF's receipt of the services from the service provider.

Please indicate the measures/actions which the Service Provider will take in the event of a data security breach affecting EPPF's data and personal information. In particular, please provide details on how the Service Provider shall notify EPPF of such a breach and the time periods within which EPPF will be notified.

Please indicate the measures/actions which the Service Provider has implemented/will take in order to assist the EPPF with any requests for access to personal information by any data subjects.

Please indicate the measures/actions which the Service Provider will take in the event that it is required by law, regulation or court order to disclose or process any EPPF personal information.



Please indicate the measures/actions which the Service Provider will take in relation to any cross-border transfers of EPPF's data or personal information (i.e. outside of the borders of South Africa).

Please indicate the extent to which the Service provider will be willing to comply with any requirements set out in EPPF's data retention and destruction policies.

Please indicate the measures which the Service Provider has in place that will be used to secure EPPF's data and personal information against being accessed or read by any unauthorised parties.

A.

Q. Step-in rights

Please indicate whether the Service Provider has any objection to EPPF being provided with step-in rights which may be exercised by EPPF upon its receipt of any notification by the Service Provider of the occurrence of any event which EPPF considers, in its sole discretion, to be an event which may affect the continuity of the services. In this regard, such step-in rights would include the partial or total suspension of the right and obligation of the Service Provider to provide all or any part of the services until such time as the Service Provider is able to demonstrate to the satisfaction of EPPF that it can perform (and is capable of performing) its obligations in respect of the relevant services to the required standard and in accordance with the relevant service levels.

A.

Q. Disengagement services

Please provide comprehensive details of the termination assistance or disengagement services that will be provided upon termination of the Agreement with a view to ensuring a smooth transfer of the services from the Service Provider back to the EPPF or to its selected replacement service provider. In this regard, please specify what the Service Provider's obligations will be.

Please provide details of the time periods in relation to the provision of disengagement services by the Service Provider.

Please advise on the costs which EPPF may incur in relation to the provision of the disengagement services, it being expected that no costs will be incurred should the Agreement be terminated due to the Service Provider's breach.

Please provide details on the furnishing of a disengagement plan by the Service Provider and specify what the consequences will be in the event that the Service Provider fails to comply with the disengagement plan.

A.

Q. Reports and other Resource Materials



Please list the general reports that the Service Provider will provide to EPPF in relation to its performance of the services and the frequency in which each of those reports will be provided (e.g. reports on service performance, proposed service improvement initiatives, planned maintenance, information and technology security requirements, audit results, EPPF data logs and data processing reporting, cost-management, subcontractor relationships, human resources matters, etc.).

Please indicate whether the Service Provider will furnish EPPF with regular security assessment reports (inter alia, on unauthorised system access incidents and breaches of security and data integrity). Specify details.

A.

Q. Certifications and compliance

Service Provider is required to provide proof of the relevant certifications and audit and compliance standards that it adheres to and to also provide details of their scope and application and details of their respective validity periods.

A.



9 Implementation

Respondents are required to detail their approach to the implementation, paying attention to the timeframes and change management aspects of implementation.

Approach

i. Describe how your organisation would approach this implementation, please detail the phases involved.

ii. Give a high-level overview of the System Development Life Cycle (SDLC) for your pension fund administration system, paying attention to the implementation and support phases.

iii. Describe your organisation’s approach to the data migration and conversion process.

iv. How would you approach a parallel run with the PBB/PBS systems paying attention to the testing and pilot stages of the implementation?

v. Comment on your approach to application testing, unit, system, and integration testing.

vi. Comment on your approach to user acceptance testing.

vii. Comment on your approach to skills transfer and end-user training.

viii. Describe the resources available from your organisation as well as required from EPPF to be dedicated to this project.

Timeframes

i. What is the estimated length of time for the implementation of the new system?

ii. Indicate high-level estimates of timelines for activities such as:

a. Data conversion and migration;

b. Parallel run of the new system with the current systems;

c. Training of end users, assuming 40 staff members need training on the new system.

iii. Provide an implementation approach and associated project plan.



10 Hosting

Respondents must note that the EPPF may require the application to be hosted at the respondent’s premises or hosting facilities.

Given these requirements:

i. Comment on your ability to host the application. Detail the environment in which the application will be hosted.

ii. Describe bandwidth requirements to enable acceptable system response times and stability.

iii. Describe any communication link security measures that will be put in place to ensure a secure connection to the EPPF from your hosting environment.

iv. Describe how the system will be configured to segregate the EPPF’s data from any other customer’s data.



11 Pricing

Please provide all assumptions made in the pricing. All prices are to be quoted in ZAR and should include VAT. Proposals should be valid for at least 90 days. If prices are subject to exchange rate fluctuations, please indicate the assumed rates.

i. Provide the basis for software license costs (i.e. are they based on transaction volumes, number of concurrent users, number of total users, a member per month fee, monthly or annual license costs per module). Please include any sign-on or once-off costs, if applicable.

ii. Provide the following costs, specifically for the implementation:

Implementation Related Cost Cost

Software Licenses

Software Installation and configuration

Infrastructure and hardware costs

Business Process Analysis

Customisations and bespoke development

Development of Interfaces

Project and Change Management

Data Migration

Testing

Training

Other (please specify)

Contingency

Total Cost

iii. Please indicate hourly rates for consultancy / implementation per resource level (i.e. project manager, architect, developer, and tester).



iv. Give a high-level Total Cost of Ownership (TCO) analysis of the proposed system (ASP option) over a 5-year period.

Cost Item Year 1 Year 2 Year 3 Year 4 Year 5 Total

License Fees – Software

Hardware

Installation and

customisation / upgrades

Interfaces

Data Migration

Training

Support and Maintenance

Connectivity

Disaster Recovery

(Dedicated)

Third party and other

software

Total Cost



i. Give a high-level Total Cost of Ownership (TCO) analysis of the proposed system (for an outright purchase) over a 5-year period.

Cost Item Year 1 Year 2 Year 3 Year 4 Year 5 Total

License Fees – Software

Hardware

Installation and

customisation / upgrades

Interfaces

Data Migration

Training

Support and Maintenance

Connectivity

Disaster Recovery

(Dedicated)

Third party and other

software

Total Cost

EPPF reserves the right to negotiate TCO milestones with respondents and construct bonuses and penalties around these milestones to ensure that the chosen respondent is delivering on the EPPF’s expectations.



12 Appendix A – Declaration Form

I, _____________________________ in my capacity as _____________________________ of

(Name) (Position) _____________________________ declare that I am authorised to sign this proposal being submitted by

(Company Name) _____________________________, and any contract resulting from it on behalf of the company.

(Company Name) I further declare that all information provided in the proposal is true and correct. _____________________________

(Signature) _____________________________

(Date)



13 Appendix B – EPPF Terms of Business

Background

The EPPF wishes to appoint a suitable service provider for the provision of a retirement fund benefits administration- and financial management system.

By submitting a response to this Request for Proposal (RFP) by the EPPF, a respondent automatically undertakes to be bound by and agrees to the conditions set out in this document.

Parties that do not consider themselves bound by the provisions of this document should not respond to the RFP, as submission of a response presupposes agreement to the terms of this agreement.

TERMS OF BUSINESS

The Eskom Pension and Provident Fund (“EPPF”) hereby sets out the Terms of Business that will apply to the work to be done by the service provider appointed in terms of the RFP accompanying this agreement.

On appointment of a preferred service provider, an additional agreement detailing the services to be rendered will be entered. These terms of business do not in any way establish an agreement to provide services as outlined in the RFP, but only serves to explain the conditions under which the appointment of the preferred service provider will be subjected and the conditions under which a preferred service provider will be appointed.

1 The Services to be provided

1.1 The Services – The service provider will provide the services described in the RFP, and at the location(s) to be set out in the Terms of Engagement. Where the Terms of Engagement refer to services to be performed this means that the service provider will provide EPPF with the Services and will be responsible for the management and control of the Services and the quality of any deliverables listed or referred to in the Terms of Engagement. Where the Terms of Engagement refer to services to assist you this means that EPPF will use reasonable skill and care, as specified, to assist the service provider with its project, but the service provider will be responsible for the overall management and control of the Services and for the results to be achieved from using the Services.

1.2 The service provider’s staff – Where individual members of the service provider’s staff (including partners and directors) are named in the Terms of Engagement the service provider will make every reasonable effort to ensure that the named individual(s) are available to support its work for EPPF for the estimated period stated in the Terms of Engagement. Where the service provider considers changes in its named staff necessary or appropriate, for reason of, inter alia, resignation, relocation, training or illness, the service provider may make the changes after giving EPPF reasonable notice and will provide EPPF with details of replacement staff.

1.3 Timetable – Where a Timetable is referred to or set out in the Terms of Engagement the party responding to the RFP undertakes to meet the obligations in accordance with such Timetable.

1.4 Changes to Services – Once a preferred service provider has been appointed, EPPF may request changes to the Services or changes to any other aspect of the agreement. Requests for changes must be sufficiently detailed to enable the other party to assess the impact of the requested change on the cost, Timetable or any other aspect of the agreement EPPF and the party responding to the RFP agree to work together to consider, and, if appropriate, agree to



any changes and resultant cost variations. Until a change is agreed to in writing by both parties both parties will continue to act in accordance with the latest agreed version of the agreement.

1.5 Contract Management – Both parties may designate a contact that will be responsible for managing all issues relating to the performance of the agreement.

2 Deliverables

2.1 Preparation and Delivery – EPPF will incorporate the deliverables listed or referred to in the RFP into a contract to be signed with the preferred service provider.

2.2 Acceptance - The deliverables will be accepted by EPPF when the acceptance criteria specified in the Terms of Engagement, have been met.

2.3 Ownership of Deliverables / Access to Working Papers

2.3.1 Client Materials – All rights, title and interest in and to the Client Data shall remain the exclusive property of the Client (EPPF). The EPPF shall have an unfettered right to access such Client Data as and when deemed necessary by it, which access shall include a right to extract and make copies of such Client Data. In the event that the EPPF requires such access, it shall have a right to prescribe the format in which such data shall be provided by the preferred service provider. The EPPF shall further have a right to replicate the Client Data in its information technology environment and systems. All process flows and working documents provided by the EPPF in anticipation of the appointment of the preferred service provider and/or to enable the service provider to render the services shall remain the exclusive property of the EPPF and is the confidential information of the EPPF.

2.3.2 Non-client Material Deliverables – Save for the service provider's pre-existing intellectual property, EPPF will own the copyright and all other intellectual property rights in all other deliverables and in all other materials or software created under the agreement whether created by the service provider or by or on behalf of EPPF solely or by both parties jointly.

2.3.3 Access in respect of Audit – The service provider shall be obliged to allow the EPPF

and/or its auditors or other agents, access to the service providers premises, materials, data, information and records and to the Client Data and all databases on which such data is stored, for the purposes of an audit or in accordance with any other regulatory process. Such access shall include a right to extract and make copies of such Client Data and to conduct such tests, inspections and assessments as are deemed necessary by the EPPF and/or its agents.

2.4 Reports

Oral and Draft Reports – The service provider’s oral reports and any draft reports that they may submit will not constitute their definite findings and conclusions. These will be contained solely in their final written report.



3 EPPF’s responsibilities

3.1 Information and Materials – EPPF agree to provide all information and materials reasonably required to enable the service provider to provide the Services.

3.2 EPPF staff – EPPF will ensure that its staff is available to provide such assistance as the service provider reasonably require and that it is given reasonable access to senior management, as well as any members of EPPF relevant staff, to enable the service provider to provide the Services.

3.3 Suppliers and other Third Parties – Where the service provider uses third parties to provide services, materials, information or support to a project in terms of its agreement with EPPF, including but not limited to where the service provider employs other suppliers whose work may affect its ability to provide the Services in terms of this agreement, the service provider will require the consent of the EPPF prior to using such third parties and shall ensure that it has appropriate agreements in place with those third parties to enable it to perform the Services under the terms of this Contract. Unless otherwise agreed in writing, the service provider will be responsible for the management and payment of the third parties and the quality of their input and work.

4 Fees and Payment

4.1 Payment for Services – EPPF agrees to pay for the Services as set out in the Terms of Engagement.

4.2 Time Charging – Where Time charging applies, charges will be calculated applying the fee rate and based on an eight-hour day worked on weekdays, excluding public holidays. Unless the Terms of Engagement state otherwise, hours worked more than eight hours a day or outside working days shall be charged at the stipulated fee or rate plus such premium as may be agreed in writing.

4.3 Payment of Invoices – For Fixed Price charges invoices will be issued in accordance with the payment plan set out in the Terms of Engagement. All invoices will be payable within thirty days from date of receipt thereof. Where invoices are not paid within the stipulated period, interest at the current bank rate of interest will be included in the arrear payments.

5 Term, Suspension and Termination

5.1 Duration of Contract – The duration of the Agreement, the renewal term thereof and the conditions for such renewal will be determined by the EPPF with the agreement of the service provider. The Agreement will apply from the Commencement Date stated in the Agreement which will be signed with the preferred service provider, or where no Commencement Date is specified, from the date of signature of the Agreement by the party last signing it. The Agreement will continue until the end of the agreed term of the Agreement, or where applicable, the end of any agreed renewal term, unless it is terminated earlier in accordance with the terms of the Agreement.

5.2 Termination of the Contract – Unless stated otherwise in the Agreement, the Agreement may be terminated by the EPPF at any time for any reason by giving the service provider not less than 6 months written notice, the Agreement may be terminated by the service provider



at any time for any reason by giving the EPPF not less than 12 months written notice. Where the Contract is terminated in this way EPPF will have no further liability to the service provider save that it shall be required to pay the service provider for all Services provided and completed up to the date of termination. Where the Services have been provided on a Fixed Price fees basis, and if the service provider is unable to agree on the fees payable in the event of termination pursuant to this Clause 5.2, EPPF will only pay all sums due at the date of termination in respect of services already completed as at the termination date.

5.3 Termination for Breach of Contract – The agreement may be terminated by either party by written notice with immediate effect if the other commits a material breach of any term of this Contract that is not remedied within 30 days of dispatch of a written request to remedy the same.

5.4 Termination for Insolvency – The agreement may be terminated by either party by written notice in the event that the other party is unable to pay its debts or has been placed under administration, business rescue, judicial manager, liquidator or similar person or officer appointed or compromises generally with its creditors or ceases for any other reason to carry on business or in the reasonable opinion of the other party any of these events appears likely.

5.5 Termination Assistance – In the event of termination of the Agreement as aforesaid, the

service provider shall be obliged to provide the EPPF with the necessary Termination Assistance, which Termination Assistance shall include full cooperation to enable the timeous transfer of the services and Client Data (in the format prescribed by the EPPF) to a new service provider of the EPPF’s choice.

6 Confidentiality and Conflicts of Interest

6.1 By signing this agreement, each party is under a professional obligation not to disclose to a third party any information confidential to the other party. Similarly, reports by the service provider are for the use of the EPPF alone and may not be disclosed to third parties without EPPF’s prior written consent.

6.2 Notwithstanding 6.1 above, either party will be entitled to disclose confidential information of the other to a third party to the extent required by law or where the said information is already known to the public, provided that in the former case (and without breaching any legal requirement), where reasonably practicable not less than five business days’ notice in writing is first given to the other party.

6.3 Without prejudice to 6.1 and 6.2 above, the service provider may cite the performance of the Services to our clients and prospective clients as an indication of our experience, unless both parties specifically agree otherwise in writing.

6.4 This agreement does not preclude the service provider from offering similar services to EPPF’s competitors in the course of the service provider’s business, provided that the service provider shall not disclose any confidential information obtained from EPPF to such other competitors.

6.5 Where the service provider receives “personal information” as defined in the Protection of

Personal Information Act, 2013 (Act No. 45 of 2013) (“POPI Act”), in respect of the EPPF or its members, employees, beneficiaries, claimants, or service providers, the service provider warrants that it has appropriate security measures to protect the personal information from unlawful access, disclosure, damage, unauthorised destruction or processing and that it shall



only process the aforementioned personal information strictly in accordance with the instructions of the EPPF. The service provider shall promptly inform the EPPF should such personal information be unlawfully accessed, disclosed, destroyed and processed. It shall further put the EPPF in a position to report the breach to the affected individual(s) and the Information Regulator as contemplated in the POPI Act. It shall do this by providing the EPPF with details of the breach, when it occurred, the measures employed to identify the source of the breach and to prevent further breach. The Service Provider will be required to implement all measures reasonably necessary to restore the integrity of the service provider's information system and provide the EPPF with a report on its progress in resolving the compromise at reasonable intervals. The service provider will indemnify the EPPF against any and all losses arising from the service provider's breach of the aforementioned provisions and/or which it may suffer as a result of any compromise of the EPPF personal information in its possession or under its direct or indirect control.

7 Liability

7.1 The service provider shall use the highest degree of skill, care, prudence, efficiency, foresight and timeliness which would reasonably be expected from an expert in its industry in the provision and delivery of the Services and the deliverables in terms of this agreement.

7.2 The service provider shall accept liability to pay compensation for damages and losses arising as a result of default, fraud, misconduct or negligence (including gross negligence) on its part or third parties acting on behalf of the service provider in respect of Services provided in connection with, or arising out of this agreement (or any variation or addition thereto).

7.3 In this Clause 7 the term service provider specifically includes any agent or sub-contractor (“Contractor”) of it, and their respective employees, agents, partners, or sub-contractors who perform work in connection with the Services.

8 General

8.1 Sub-contracting – The service provider reserves the right to employ agents and sub-contractors to assist it when providing any part of the Services. Any reference to the service provider’s staff in the Contract includes agents and sub-contractor staff and their respective employees, agents, partners or sub-contractors who perform work in connection with the Services and the service provider shall remain liable to EPPF in respect of any Services provided by such sub-contractors, agents or associates of the service provider.

8.2 Force Majeure – Neither of the parties to this agreement will be liable to the other for any delay or failure to fulfil obligations caused by circumstances beyond its reasonable control.

8.3 Assignment – Neither of the parties to this agreement may cede, assign, delegate, transfer, encumber, charge, or otherwise seek to deal in any of its rights or obligations under this agreement without the prior written consent of the other party.

8.4 Notices – Notices must be served either personally, sent by prepaid registered post or faxed to the address of the other party given in this agreement or to any other address as the parties may have notified during the period of the agreement. Any notice sent by registered post will be deemed to have been delivered 10 days after sending. Any notice sent by fax or served personally will be deemed to have been delivered on the first working day following its dispatch.



8.5 Amendment – Any amendment or consensual variation, cancellation, or termination of this agreement, or any of its terms, will not be effective unless agreed in writing and signed by both parties.

8.6 Survival – The confidentiality clause in this agreement shall survive the termination or expiry of this agreement and shall continue to bind the parties to this agreement.

8.7 Staff – Neither of the parties to this agreement will during the period of this agreement or within six months of its termination or expiry solicit directly or indirectly any employees of the other who have been involved in providing or receiving Services or otherwise connected with this agreement. This will not restrict either of the parties from employing staff who apply unsolicited in response to a general advertising or other general recruitment campaign.

8.8 Electronic Communications – During the provision of the Services, EPPF may from time to time communicate electronically. However, as the service provider is aware, the electronic transmission of information cannot be guaranteed to be secure or error-free and such information could be intercepted, corrupted, lost, destroyed, arrive late or incomplete or otherwise be adversely affected or unsafe to use. Accordingly, whilst EPPF carry out commercially reasonable procedures to check for the then most commonly known viruses and to check the integrity of data, it remains the service provider’s responsibility to carry out a virus check on any documents before launching them whether to be sent or to be received on disk or otherwise. Therefore and notwithstanding any collateral contract, warranty or representation, EPPF will have no liability to the service provider on any basis, whether in contract, delict (including negligence) or otherwise, in respect of any error or omission arising from or in connection with the electronic communication of information to or from the service provider and the service provider’s reliance on such information and including (but not limited to) the acts or omissions of the relevant service providers.

If the communication relates to a matter of significance on which the service provider wishes to rely and is concerned about the possible effects of electronic transmission the service provider should request a hard copy of such transmission from EPPF.

8.9 Validity of Contract Provisions – If any provision of this agreement is held to be invalid, in whole or in part, such provision shall be deemed not to form part of the agreement. In any event the enforceability of the remainder of the agreement will not be affected.

8.10 Conflict – In the event of any conflict between the Terms of Business and any other document that forms part of the agreement, these Terms of Business shall prevail except where amended by specific reference to the relevant Clause of the Terms of Business. In the event and only to the extent of any conflict between the Terms of Engagement and any referenced or attached document other than the Terms of Business, the Terms of Engagement will take precedence.

8.11 Applicability – The Terms of Business shall apply to work undertaken in relation to the service provider, its holding company or any of its subsidiary, associated or related companies, agents or sub-contractors providing services in terms of this agreement.

8.12 Future Assignments – The Terms of Business shall apply not only to the Terms of Engagement, but also to all future engagements or assignments undertaken by the service provider, unless otherwise agreed in writing.



9 Dispute Resolution and Governing Law

9.1 Should any dispute arise between EPPF and the service provider, both parties will attempt to resolve the dispute in good faith through senior-level negotiations. If the dispute is not resolved through negotiation or mediation within a reasonable time both of parties agree that it shall be finally resolved in accordance with the rules of the Arbitration Foundation of South Africa by an arbitrator or arbitrators appointed by the Foundation and agreed upon by both parties.

9.2 The Terms of Business and the Contract shall be subject to South African law.

10 Acceptance

As part of your submission, please print and sign Appendix B – EPPF Terms of Business as a separate attachment. By doing so, the service provider agrees to be bound by all terms and conditions contained within this respective Appendix.

Signed in acceptance on behalf of ………………………………………………………being duly authorized thereto.

Signed at……………………………on this……day of………………….2019

Name & Surname………………………………

Designation……………………………………..

Signature………………………………………..