Member Booklet - UKZN Retirement Fund - University of KwaZulu ...

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2. MANAGEMENT AND GOVERNANCE 2.1 MANAGEMENT The Retirement Fund is managed by a Board of ten Trustees. The Trustees meet regularly to discuss the business of the Fund and are required to act in the interests of the membership. They attend to important matters such as: - ensuring that benefits due to members are properly paid in accordance with the Rules; - ensuring that the assets of the Fund are appropriately invested. When it is necessary, the Trustees appoint and consult with appropriate professional advisers. If you have a UKZN email address, you will be sent an electronic Annual Benefit Statement, which allows you to monitor your Fund Credit. Those members without email addresses will receive a paper copy of their Annual Benefit Statement. It is important that you review this Benefit Statement when you receive it and if you have any queries, immediately raise them with the Fund. 2.2 GOVERNANCE OF THE RETIREMENT FUND The Fund is privately administered and controlled by a Board of Trustees. It is administrated according to Rules that have been registered with the Registrar of Pension Funds and approved by the South African Revenue Service, and the legislation governing retirement funds. This booklet is issued for information purposes only. The legal position regarding all matters relating to the Fund will be determined in accordance with the registered Rules. - 5 -
3. CONTRIBUTIONS TO THE FUND If you are employed on the pre-2012 Conditions of Service, your Employer contributes 22.5% of your Fund Salary each month towards funding your retirement benefit and to meet the cost of risk benefits and administration expenses. If you are remunerated on a Total Remuneration Package (TRP) basis, you have a choice between your Employer contributing at 22.5% or 17.5% of your Fund Salary. The lower contribution level is only available to members who have set their Fund Salary at a level of between 70% and 80% of their TRP. Whichever contribution category you have elected, a maximum of 5% of your Fund Salary may be used to meet the costs of death, disability and funeral benefits provided under the Benefit Arrangement, and the F contribution is credited to your Fund Credit. In choosing your contribution level remember that contributing at the 17.5% of Fund Salary contribution level throughout your membership, will mean that your retirement income could be 25% to 30% lower than if you had contributed at the default 22.5% of Fund Salary contribution level. To maximize your retirement income, t you contribute at the default level of 22.5% of Fund Salary, and maintain your Fund Salary at between 70% and 80% of TRP. A separate document is available on th that explains this in more detail. When you are making a packaging choice please ensure that you refer to this document. If you have not converted to the TRP method of payment, your contributions will automatically remain at the 22.5% of Fund Salary level. 3.1 FUND SALARY If you are remunerated on the pre-2012 Conditions of Service your Fund Salary is your basic annual salary, together with the cash value of any benefits on which the Employer has directed that the contribution be based, and your salary advice. If your employment is based on the Total Remuneration Package basis (TRP), your Fund Salary will be the percentage of your TRP, on which you have chosen that you contributions be based. Your Fund Salary can be set at between 55% and 80% of your TRP, but clearly the more you pay into the Fund, the more you will get out of it. - 6 -
Page 1 and 2: UNIVERSITY OF KWAZULU-NATAL RETIREM
Page 3 and 4: INTRODUCTION The University of KwaZ
Page 5: 1. JOINING THE FUND 1.1 MEMBERSHIP
Page 9 and 10: 4. RETIREMENT BENEFITS 4.1 NORMAL R
Page 11 and 12: 6. LEAVING SERVICE 6.1 LEAVING SERV
Page 13 and 14: Summary of Disadvantages You may no
Page 15 and 16: 8. FUNERAL BENEFIT 8.1 AUTOMATIC FU
Page 17 and 18: It is your responsibility to adjust
Page 19 and 20: 9.3 DEATH BENEFITS The death benefi
Page 21 and 22: It is important to obtain appropria
Page 23: 12. THE RULES Every retirement fund

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