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In January 2009 the government introduced isikhwama sezimali yezindlalifa

These funds receive the money paid out by a company's retirement fund when an employee passes away.

The death benefit money is invested and kept safe for the deceased member's dependants and administered by companies such as Fairheads Benefit Services.

The funds play an important social role as they are mainly used for the education of minor children. Guardians or beneficiaries normally receive a monthly income from the funds and can make requests for capital payments such as school fees.

When the child reaches majority he or she is entitled to the remainder of the funds or may choose to leave them in the beneficiary fund for future investment management.

Andile Guda (Pictured right), Marketing Consultant with Fairheads in KwaZulu Natal, says that the province has the highest concentration of guardians and beneficiaries for the funds that Fairheads administers. The company manages funds for approximately 45 000 minor children in this area.

"It is a sad reflection on the high Aids death rate in KZN which means that there are many orphans and even child-led households," says Guda.

Fairheads is starting a communication and education campaign around beneficiary funds as they are still quite new and there is a lot for people to learn.

One of the most important things is for guardians and beneficiaries to update their contact details every year or whenever they move house or get a new cell phone number.

"We send out an annual certificate of existence which guardians and beneficiaries MUST fill in, otherwise we stop payments because we cannot be sure that the details are still correct," says Guda.

Fairheads is holding information workshops for guardians in Durban, Pietermaritzburg and Empangeni in August. These workshops are for guardians whose minor wards have funds with the Fairfund Trust or the Mineworkers Trust Fund only.