40717VC_VC_ELECHANDBOOK_UPDATE_LR

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GTC UMBRELLA PROVIDENT FUND LOOKING OUT FOR YOUR FUTURE The fund is governed and administered according to the provisions of the Pension Fund Act, 1956, and the Income Tax Act, 1982. It is managed by a Board of Trustees of whom 50% are independent and the balance appointed by GTC. The administration is done by administrators appointed by the Trustees. The participation of ADvTECH Limited in the fund is managed by a Board of Management consisting of 7 members. Of these, 4 are elected by the employees of ADvTECH who are members of the fund and 3 are appointed by ADvTECH. All permanent employees of Varsity College are required to become members of the Provident Fund. You can however, choose whether you want to contribute 6.8%, 9.5% or 12.75% of your pensionable salary. Should you choose either the 6.8% or 9.5% contribution rate, you are given the option to increase it to either 9.5% (from 6.8%) or 12.75% (from either 6.8% or 9.5%) on the 1st of July each year. You cannot however, revert to the lower contribution rate once you have increased it to a higher contribution rate. The contribution is tax efficient meaning that your income will be reduced by this amount before tax is calculated and deducted. From this year, members of the fund are allowed to contribute additional voluntary contributions (AVC) to the Fund, in a tax efficient manner, up to a maximum contribution of 27.5% of taxable income (this limit includes the compulsory contributions and is subject to an overall maximum of R350,000 per annum). When you decide to add AVC you need to commit to do it for the year until you have a choice again, effective 1 July the following year. Once a year, effective 1 July, members will have the option to amend their AVC. When this annual option date comes around you may increase, decrease or terminate your AVC. The AVC must be a monthly Rand amount with a minimum of R100 or any figure in multiples of R100, payable via payroll. Certain costs, such as administration, consulting, death and disability etc., are included in and deducted from the monthly contribution amounts. Upon withdrawal, members get what they have contributed less the deductions mentioned, plus investment return (please bear in mind that investment return, although positive over the medium to long term, has negative periods as well). Built into the associated risk benefits of this fund are the Death benefit (including a Universal Education Protector Benefit), Disability Income Protection, Critical Illness Benefit and Funeral Assistance Benefit. Please note that all group risk benefits cease when service terminates. Death Benefit Upon the death of a member a multiple of four times annual pensionable salary is payable. The Universal Education Protector Benefit Upon the death of a member, an additional benefit is payable over and above the multiple of four times annual pensionable salary in respect of the education costs of the children of the deceased member. Education is one of the most important and expensive monthly costs for most families. Sanlam realises this and has developed the Universal Education Protector Benefit to assist. This benefit is designed to fund the education of children in the event of the death of a member. Certain Rand limits will apply as set out from time to time. A comprehensive explanation document is available on the GTC website. Critical Illness Benefit The benefit is equal to one times annual pensionable salary subject to a maximum benefit of R750 000. A tax free lump sum amount will be paid to you if you are diagnosed with one of the illnesses defined in the insurer’s policy document. A benefit paid under this policy will not affect the member’s life cover benefit. Fringe benefits tax is payable on the premiums. This benefit covers a range of medical conditions from life changing events to terminal illness (please refer to the document on the GTC website). Pre-existing conditions may be excluded from the policy during the first 2 years of membership.
GTC UMBRELLA PROVIDENT FUND Disability Income Benefit In the event of your disability prior to retirement, a monthly benefit based on 75% of your pensionable salary would be payable, after a three (3) month waiting period; subject to an overall maximum of R215 000 per month. The insurer reserves the right to reduce the benefit to ensure it does not exceed pre-disability after tax income. If you have an individual policy providing a similar benefit then you must please enquire with your personal financial advisor about aggregation of benefits. Once in payment your benefit will increase annually by the lesser of the official rate of inflation and 5%. Your membership of the fund would continue. Subject to the insurer’s approval, the benefit may continue to be paid until the earlier of recovery, death or reaching your normal retirement age. Over and above the standard benefit of 75% of pensionable salary, the insurer will pay a contribution on your behalf towards the pension fund as long as you receive a disability benefit payment. This contribution aims to replace the contribution selected by you and will not include any AVC. The disability benefits are subject to the insurer’s standard terms and conditions. In particular it must be noted that for new members a pre-existing condition exclusion will apply for the first twelve months of membership, unless the member had similar group cover with a previous employer. Funeral Assistance Benefit In the event of death in your immediate family, a lump sum as per the following scale will be paid to cover the funeral costs: Member – R18,000 Spouse – R18,000 Children (14-21) – R18,000 Children (6-13) - R9,000 Children (1-5) – R4,500 Stillborn to 11 months – R2,250 Please note that the entire benefit ceases when the member reaches age 65. The benefit will cease for the non member spouse when he/ she reaches age 65 even if the member is still working and younger than 65. As part of the GTC Umbrella Provident fund, Varsity College employees are now also able to select an investment portfolio from a range of five options in line with the member’s risk appetite or religious orientation. 1. GTC Conservative portfolio 2. GTC Moderate portfolio 3. GTC High Equity portfolio 4. GTC Market Plus portfolio 5. GTC Shari’ah portfolio Members are able to switch investment portfolios should they wish to do so. Please note however that only one switch in a twelve (12) month period is allowed for any member. Notes: 1) The above is a short summary of the fund and related risk benefits. It is very important to also review the member guide (available on the GTC website) http:www.gtc-eb.co.za and the feedback documents distributed after each meeting of the Board of Management. 2) Web access is encouraged to view your benefit statement from time to time and to read the other important documents explaining the benefits and the investment portfolios. Please ensure you collect the log in details from your HR department.
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Page 5: ReMUNERATION ALL ABOUT GETTING PAID
Page 9 and 10: ADVTALENT PEOPLE SOLUTION SHOW ME T
Page 11 and 12: SALARY REVIEW THIS SOUNDS GOOD! You
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Page 15 and 16: ANNUAL LEAVE PART II When can I not
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Page 19 and 20: FAMILY RESPONSIBILITY LEAVE FAMILY
Page 21 and 22: DISCIPLINARY CODE KEEPING IT FAIR!
Page 23 and 24: ELECTRONIC COMMUNICATION POSTMAN PA
Page 25 and 26: DATA MANAGEMENT SAVE IT BEFORE YOU
Page 27 and 28: HIV/AIDS AWARENESS HIV/AIDS knows n
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40717VC_VC_ELECHANDBOOK_UPDATE_LR

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