42765VC_employee_handbook_update_2018_r2

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 The IIE’s
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. You are given the option
to change your contribution rate to any of
the other available contribution rates on the
1st of July each year.
The contribution is tax efficient meaning
that your income will be reduced by
this amount before tax is calculated and
deducted.
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 additional
voluntary contributions. 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. It is advisable
to consult with a qualified financial advisor
to assist you with the calculation of your
maximum allowable AVC.
Certain costs, such as admin, 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
returns are market related, although
positive over the medium to long term,
there could be negative periods as well).
Built into the associated risk benefits of this
fund is the Death Benefit (including a Global
Education Protector Benefit), Disability
Income Protection, Critical Illness Benefit
and Funeral Assistance Benefit. Please note
that all group risk benefits cease when
service terminates.
Group Life Benefit
Upon the death of a member an insured
benefit equal to a multiple of 4 times annual
pensionable salary plus fund credit are
payable to the member’s beneficiaries. The
benefit is subject to tax.
It is very important to complete a
nomination of beneficiary form to assist the
Trustees to distribute the benefit in terms of
Section 37C of the Pension Funds Act.
The Global Education Protector Benefit
Upon the death of a member, an additional
benefit is payable over and above the
insured death benefit 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.
Discovery realises this and has developed
the Global 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 terms and conditions and rand
limits will apply as set out from time
to time. A comprehensive explanation
document is available
on the GTC website.
Severe Illness Benefit
(also known as
Dread Disease or Critical Illness Benefit)
The benefit is equal to one times annual
pensionable salary subject to a maximum
benefit of R800 000 for severe conditions.
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