Tier-3 Provident Funds: What Trustees Should Review This Year
Trustees of Tier-3 provident funds should review their investment policy statement, benchmark suitability and fee transparency annually — and confirm their manager reports against NPRA-aligned mandates.
Voluntary Tier-3 contributions have grown as employers use provident funds to attract and retain staff. With that growth comes a sharper duty of care for trustees.
Three questions for your manager
First, does the investment policy statement still match the membership's time horizon and liquidity needs? Second, is the benchmark the right one, or a legacy default? Third, are all fees — management, custody and transaction — disclosed in a single, comparable figure?
Governance cadence
We recommend an annual review of the policy statement and a quarterly performance and compliance report aligned to NPRA guidance.
Related questions.
How often should a Tier-3 scheme be reviewed?
What is the difference between Tier-2 and Tier-3?
Apply this to your portfolio
Speak to a Union Capital advisor about what it means for you.