The Default Regulations

Jul 23, 2019

Default regulations from 1 March 2019 have made it simpler for you to save for retirement.

We all know someone who is receiving a pension income in retirement and often it is not enough. These regulations assist you to improve your monthly income in retirement, but you still have the option with what you want to do with your retirement savings in terms of investment, withdrawal and at retirement…

There are 3 parts to the default regulations (of the Pension Funds Act) that are effective, each of these aim to make things easier for you as a member of the Fund. We have summarized these for you here…

Regulation 37

 Regulation 37 requires us to offer you a default investment portfolio strategy that the monthly employer contributions are invested in. We have always had a default strategy in place, the details of the investment strategy are provided in the member guide.

Regulation 38

Regulation 38 provides that if/when you leave the Fund, your retirement savings will remain invested in this Fund unless you instruct Sanlam (the administrators) to transfer your savings out of the 

Regulation 39

Regulation 39 required that we make sure we assess and review various annuity options. The Trustees have worked on this and are putting in place an option for you at retirement that will ensure you can transfer your savings to an annuity that will pay you a monthly income in retirement that we have reviewed and believe is appropriate for our members.

Other Fund Details

Paid up Benefits: If you have elected to remain paid-up or have preserved in your previous employer’s retirement fund, please ensure that a paid-up certificate is provided to us. We also encourage you to please consider consolidating your retirement fund credit in this Fund.

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