INDEX INHOUD. Fund Registration No: 12/8/1278/2 PO Box 4300, Tygervalley Tel: Fax

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1 JAARVERSLAG

2 A word from the Chairman From the desk of the PO Financial Results for the financial year ended 30 June 2013 Investment Update Legal and Technical Update Administrator s Review Actuarial Valuation as at 30 June 2013 Communication Update Board of Trustees: Mr HF Botha Chairperson, Mrs M van Zyl Deputy Chairperson, Mr DL Carstens, Mr MJ de K de Waal, Mr I du Toit, Mr PW Esterhuizen, Mr J Lawack, Mr WR Meiring, Mr JAH van den Berg, Mr JDB van der Merwe, Mr D Venter Principal Officer: Adv. JVA Booyens Fund Registration No: 12/8/128/2 PO Box 4300, Tygervalley Tel: Fax INDEX Indemnity Statement: The Cape Joint Pension Fund does not accept liability for any loss, damage or expense that may be incurred as a direct result or consequence of reliance upon the information in this document. If there is any conflict between the information in this document and the actual Rules of the Fund, the actual Rules of the Fund will prevail. n Woord van die Voorsitter Uit die Hoofbeampte se pen Finansiële Resultate Beleggingsnuus Regs- en Tegniese Aspekte Administrateursoorsig Aktuariële Waardasie Kommunikasienuus Raad van Trustees: Mnr. HF Botha Voorsitter, Mev. M van Zyl Ondervoorsitter, Mnr. DL Carstens, Mnr. MJ de K de Waal, Mnr. I du Toit, Mnr. PW Esterhuizen, Mnr. J Lawack, Mnr. WR Meiring, Mnr. JAH van den Berg, Mnr. JDB van der Merwe, Mnr. D Venter Hoofbeampte: Adv. JVA Booyens Fondsregistrasienommer No: 12/8/128/2 Posbus 4300, Tygervallei Tel: Faks INHOUD 10 Vrywaringsverklaring: Die Kaapse Gemeenskaplike Pensioenfonds aanvaar geen verantwoordelikheid vir enige verlies, skade of onkoste wat as n direkte gevolg of uitvloeisel van vertroue op die inligting in hierdie dokument gely of aangegaan word nie. Indien daar enige konflik tussen die inligting in hierdie dokument en die Reëls van die Fonds is, sal die Reëls van die Fonds geld.

3 A word from the Chairman I am delighted to report that the Fund managed to achieve all of our set goals during the past financial year. The Board of Trustees, with support from our Principal Officer and service providers, were very successful in addressing various challenges over the year. The most significant achievement was the performance of our investments over this period. The good news is that the Defined Contribution Section managed to deliver excellent investment returns of 18.44% for the period 1 July 2012 to 30 June 2013, outperforming its benchmark by more than %. Our Defined Benefit Section outperformed its benchmark of CPI plus 4%, by 8.6% for the same period. On the subject of investments, the Fund changed its investment strategy to indexing last year and allocated a 5% investment reserve to all DC members share accounts. Just as significant was the extensive consultation processes with the City of Cape Town about the transfer of members who belonged to the Defined Benefit Section of the Fund to the Defined Contribution Section of the Fund. An agreement was only reached in the beginning of 2014 and is now also rolling out to other employers. The employer was required to pay a once-off contribution that serves as an enhancement, ensuring that a fair basis was used in the transfer of DB members. Another accomplishment was the introduction of Life Stage Portfolios in the Defined Contribution Section of the Fund. These portfolios aim to provide members with an appropriate balance of risk and expected return up to retirement age. This is very important, as investment returns have a direct impact on retirement savings. The Fund continues to follow its risk-based investment strategy (LDI) by managing a portion of the Fund s assets relative to the total liabilities. This strategy is particularly important for our DB Section and will still be applied to the assets of our pensioners in future. The main objective is to minimise the risk for these members. Pensioners received a 30% bonus in December 2013 and an increase of 3% with effect from 1 January Pensioners getting pensions for less than one year received pro-rata increases and bonuses. All of these accomplishments would not be possible without the assistance of my fellow Trustees, Principal Officer and service providers. Thank you for your dedication and hard work. To our members and pensioners, my sincere appreciation for your ongoing trust and support. The Board will always endeavour to act in your best interest. Herman F. Botha Chairperson and Member of the Cape Joint Pension Fund 3 n Woord van die Voorsitter Ek is verheug om te kan rapporteer dat die Fonds alle doelwitte vir die afgelope finansiële jaar bereik het. Die Raad van Trustees, met die ondersteuning van die Hoofbeampte en ons diensverskaffers, het gedurende die jaar verskeie uitdagings suksesvol aangespreek. Die mees beduidende prestasie was die sukses van ons beleggings deur hierdie tydperk. Die goeie nuus is dat die Vastebydrae-afdeling n uitstekende beleggingsopbrengste van 18.44% vir die tydperk 1 Julie 2012 tot 30 Junie 2013 gelewer het, en sodoende die doelwit met meer as % oorskry het. Ons Vastevoordele-afdeling het die doelwit van VPI+4% met 8.6% vir dieselfde tydperk oorskry. Die Fonds het ook gedurende die laaste jaar sy beleggingstrategie na indeksering verander en 5% beleggingsreserwe tot alle VB-lede se lidbelang toegewys. Net so belangrik, was die omvattende konsultasieproses met die Stad Kaapstad oor die oorplasing van die Vastevoordele-afdeling lede na die Vastebydrae-afdeling van die Fonds. n Ooreenkoms is slegs aan die begin van 2014 bereik en dit word nou ook aan ander werkgewers voorgelê. Die werkgewer moes n eenmalige bydrae (wat as n verhoging dien) betaal. Dit verseker dat n regverdige basis vir die oorplasing van VV-lede gebruik is. Die bekendstelling van die lewensfase-beleggingsportefeuljes in die Vastebydrae-afdeling van die Fonds was ook n prestasie. Hierdie portefeuljes sal vir lede n toepaslike risikovlak teenoor verwagte opbrengste tot en met aftreeouderdom bied. Dit is baie belangrik, want beleggingsopbrengste het n direkte impak op aftreespaargeld. Die Fonds sal steeds sy lastegedrewe-beleggingstrategie volg deur n gedeelte van die Fonds se bates relatief tot die totale laste te bestuur. Hierdie strategie is veral belangrik vir die Vastevoordele-afdeling en sal steeds in die toekoms vir ons pensioenarisse se bates gebruik word. Die hoofdoelwit is om die risiko vir hierdie lede so laag as moontlik te hou. Pensioenarisse het in Desember 2013 n bonus van 30% ontvang en n verhoging van 3% wat op 1 Januarie 2014 in werking getree het. Pro-rata verhogings en bonusse is aan pensioenarisse wat vir minder as een jaar n pensioen ontvang het, toegeken. Nie een van hierdie prestasies sou moontlik gewees het sonder die hulp van my mede-trustees, Hoofbeampte en diensverskaffers nie. Dankie vir die toewyding en harde werk. Aan ons lede en pensioenarisse wil ek graag my opregte waardering vir u volgehoue vertroue en ondersteuning uitspreek. Die Raad sal altyd probeer om na u beste belange om te sien. Herman F. Botha Voorsitter en Lid van die Kaapse Gemeenskaplike Pensioenfonds 3

4 From the desk of the Principal Officer 4 The last financial year will go down as one of the most significant ever in the history of the Fund. After an intensive process that started in 2011, the Fund was able to implement its restructuring of the Defined Benefit ( DB ) Section. DB members can now transfer to the Defined Contribution ( DC ) Section, together with a significant financial contribution paid to them by employers. So far, the employers of more than 80% of our members have already agreed to the process. Members will begin transferring to the DC Section from 1 May 2014, subject to the Registrar of Pensions final approval of the process. Many of you will already have attended one of many member information sessions we have conducted. Feedback from members has been very positive. To set even the technically-minded at ease, we have issued extensive written communication to transferring members, along with the member information sessions. The Board of Trustees wish to make sure that every transferring member clearly understands the process and its implications, and invites you to contact the Fund s help desk, should there still be any concerns. Along with the restructuring of the DB Section, the Fund is also introducing the Life Stage investment concept in the DC Section, along with beneficial life and disability cover choices. All of this will help to give you the ability to actively participate in the structuring of your retirement benefits. Adv. JVA Booyens Principal Officer kobusbooyens@capejoint.co.za Planning for retirement is no longer just making a monthly contribution to a fund; you can now structure an outcome that best suits your own particular circumstances. Don t miss out on this opportunity! Uit die Hoofbeampte se pen Die laaste finansiële jaar sal onthou word as een van die mees beduidende jare in die geskiedenis van die Fonds. Na n intensiewe proses wat in 2011 begin het, kon die Fonds die Vastevoordele-afdeling (VV) herstruktureer. VV-lede kan nou na die Vastebydrae-afdeling (VB) oorgeplaas word, tesame met n aansienlike finansiële bydrae wat deur die werkgewers vir hulle betaal word. Die werkgewers van meer as 80% van ons lede het reeds tot die proses ingestem. Lede sal vanaf 1 Mei 2014 na die VB-afdeling oorgeplaas word. Dit is onderhewig aan die Registrateur van Pensioenfondse se finale goedkeuring van die proses. Baie van u het reeds een van ons gereelde lidinligtingsessies bygewoon. Lede se terugvoer oor hierdie sessies is baie positief. Ons wil graag selfs die tegnies-gesinde lede gerusstel, en daarom het ons dus saam met die lidinligtingsessies breedvoerige kommunikasie aan lede uitgereik. Die Raad van Trustees wil seker maak dat elke lid wat oorgeplaas word die proses en die implikasies daarvan goed verstaan. Daarom wil ons u aanmoedig om met die Fonds in verbinding te tree indien u enige vrae het. Die Fonds is ook besig om die lewensfase-beleggingskonsep in die VB-afdeling bekend te stel, tesame met nuwe keuses vir voordelige lewens- en ongeskiktheidsdekking. Hierdie nuwe konsep en die herstrukturering van die VV-afdeling sal help om u aftreevoordele te struktureer. 4 Adv. JVA Booyens Hoofbeampte kobusbooyens@capejoint.co.za Beplanning vir aftrede is nie meer net die maandelikse bydrae tot n fonds nie u kan nou n uitkoms beplan wat die beste by u eie, persoonlike omstandighede pas. Moenie hierdie geleentheid misloop nie!

5 Financial Results for the financial year ended 30 June 2013 During the year under review, the Fund s Total Funds and Reserves (that reflects the total of the members and pensioners interest) increased by R24 million. The Fund once again received an unqualified audit report from the Fund s auditors, Rademeyer Wesson. The audit report can be found on the Fund s website at The main income and expenditure items for the financial year were as follows: (Previous financial year s comparative figures on the right) Accumulated funds beginning of period: Plus: Income i. Contributions members and employers ii. Transfers received iii. Reinsurance recoveries iv. Reorganisation recoveries v. Net investment income vi. Other Income Subtotal Minus: Expenditure i. Pension benefits ii. Transfers paid iii. Reinsurance premiums (risk benefits reinsured) iv. Administration and management Accumulated funds end of period: R million R million (55) Finansiële Resultate vir die finansiële jaar geëindig 30 Junie 2013 Gedurende die jaar onder oorsig het die Fonds se totale fondse en reserwes, wat die totaal van die lede en pensioenarisse se belange weerspieël, met R24 miljoen gestyg. Die Fonds het weereens n ongekwalifiseerde ouditeursverslag van die Fonds se ouditeure, Rademeyer Wesson, gekry. Die ouditeursverslag is op die Fonds se webblad by beskikbaar. Die belangrikste inkomste- en uitgawe-items vir die finansiële jaar was as volg: (Vorige finansiële jaar se vergelykende syfers in regterkolom) Opgehoopte fondse aan begin van periode: Plus: Inkomste i. Bydraes lede en werkgewers ii. Oorplasings ontvang iii. Herversekeringsverhalings iv. Reorganisasieverhalings v. Netto beleggingsinkomste vi. Ander inkomste Subtotaal Minus: Uitgawes i. Pensioenvoordele ii. Oorplasings betaal iii. Herversekeringspremies (risikovoordele herverseker) iv. Administrasie en bestuur Opgehoopte fondse aan einde van periode: R miljoen R miljoen (55)

6 6 Investment Update Duncan Theron (GRAYSWAN INVESTMENTS) The Trustees have continued to implement various investment related portfolio enhancements within the Defined Benefit (DB) Section. The changes resulted in the DB Section subsequently showing another strong performance of 1.82%, outperforming its long-term target of CPI+4% by 8.6% for the financial year ending June The DB Section has continued to perform strongly and has outperformed its target by 9.91% over the 12 months ending February The newly introduced Defined Contribution (DC) Section also showed a strong performance, returning 18.44% per annum, outperforming its long-term target of CPI+6%, by.20% over the financial year ending June Over the 12 months ending February 2014, the Fund outperformed its target by 3.09%. The strong results were as a result of an overweight to local and offshore equities which continued to perform strongly. Furthermore, superior investment manager selection also added material value to the funds. The Trustees have continued to implement dynamic local and offshore protection strategies within the DB Section to limit risks, as the equity markets and our own currency have been extremely volatile. This dynamic investment strategy has worked well and the members of the Fund has not only benefitted from strong performance, but also risk adjusted performance. DB Fund Jul 2012-Jun % 9.8% 11.24% 18.44% 11.89% 6.55% 12 Months (ending Feb 2014) CPI+4% DB vs CPI+4% DC Fund CPI+6% DC vs CPI+6% 19.93% 10.01% 9.91% 15.22% 12.13% 3.09% Beleggingsnuus Duncan Theron (GRAYSWAN BELEGGINGS) 6 Die Trustees het voortdurend verskeie beleggingsgedrewe portefeuljeverbeteringe binne die Vastevoordele-afdeling (VV) aangebring. Die veranderinge het gelei tot die VV-afdeling se sterk prestasie van 1.82% en dat die afdeling sy langtermyndoelwit van VPI+4% met 8.6% uitpresteer het. Die VV-afdeling het sterk presteer en het sy doelwit met 9.91% oor die 12 maande-tydperk geëindig Februarie 2014 uitpresteer. Die splinternuwe Vastebydrae-afdeling (VB) het ook n goeie prestasie getoon, met opbrengste van 18.44% per jaar. Hierdie afdeling het sy langtermyndoelwit van VPI+6% met.20% verbeter gedurende die finansiële jaar geëindig Junie Tydens die 12 maande tot Februarie 2014 het die Fonds sy doelwit met 3.09% geklop. Die goeie resultate is die gevolg van n oorwig in plaaslike en oorsese aandele wat steeds goed presteer het. Beter keuses vir beleggingsbestuurders het ook waarde tot die fondse toegevoeg. Die Trustees het volgehou om dinamiese plaaslike en oorsese beskermingstrategieë binne die VB-afdeling toe te pas, omdat die aandelemarkte en ons eie geldeenheid baie onstabiel is. Hierdie dinamiese beleggingstrategie het goed gewerk en die lede van die Fonds het nie slegs by goeie prestasies baat gevind nie, maar ook by risiko-gedrewe prestasie. Jul Jun Maande (eindig Feb 2014) VV-fonds VPI+4% VV vs VPI+4% VB-fonds VPI+6% VB vs VPI+6% 21.02% 9.8% 11.24% 18.44% 11.89% 6.55% 19.93% 10.01% 9.91% 15.22% 12.13% 3.09%

7 Legal and Technical Update Braam Du Plessis (SIMEKA CONSULTANTS AND ACTUARIES) Administrative Review (VERSO FINANCIAL SERVICES) 2014 started on a high note for retirement funds. Various changes to the Pension Funds Act were introduced in January 2014 and these changes can be summarised as further protecting the rights and benefits of Fund members. In his 2014 budget speech, the Minister of Finance gave retirement fund members a welcome adjustment to the tax-free amounts at retirement and shows Government s commitment to retirement funds and incentivising members to secure a safe retirement through employer-sponsored retirement funds. By now, most of the members of the Defined Benefit Section will have received all the correspondence dealing with the restructuring of this section of the Fund, including the options available to them as part of their conversion to the Defined Contribution Section. I have spoken to a few of the members and my impression was that the restructuring was well received and the members are excited about their entry into the Defined Contribution Section. The team of administrators perform a variety of functions throughout the year to ensure the smooth running of the Cape Joint Pension Fund. These functions include financial reporting, the submission of monthly and bi-annual tax reconciliations to SARS, the processing of claims, month-ends, home loan applications, risk option changes and the monthly pensioner payroll, loading new members, updating personal data and beneficiary details, and responding to queries from employers, members, pensioners and intermediaries. On 30 June 2013, the Fund consisted of 1 95 members and 4 66 pensioners. For the period 1/0/ /06/2013, the following claims were processed: Withdrawal claims 53 Retirement claims 69 Death claims 13 For Defined Contribution Section members the new Life Stage investment strategy is an exciting development and it is aimed at meeting investment needs. This model is easy to understand and requires minimal intervention by the member. The new strategy takes effect on 1 May Divorce claims 13 Funeral claims 33 Regs- en Tegniese Aspekte Braam Du Plessis (SIMEKA KONSULTANTE EN AKTUARISSE) Administrateursoorsig (VERSO FINANSIëLE DIENSTE) 2014 het op n hoë noot begin vir pensioenfondse. Verskeie veranderinge aan die Pensioenfondswet is in Januarie 2014 bekend gestel, wat opgesom kan word as veranderinge wat die regte en voordele van Fondslede verder beskerm. In sy 2014-begrotingstoespraak het die Minister van Finansies vir fondslede n welkome aanpassing tot die belastingvrye bedrag met aftrede gegee. Dit het ook bewys dat die regering toegewyd is tot pensioenfondse en lede wil aanspoor om n veilige en standvastige aftrede te bou deur van pensioenfondse, wat deur die werkgewer geborg word, gebruik te maak. Teen hierdie tyd behoort die meeste van die lede in die Vastevoordele-afdeling reeds die korrespondensie oor die herstrukturering van hierdie gedeelte van die Fonds ontvang het. Dit sou die opsies wat vir hulle beskikbaar is as deel van hulle oorplasing na die Vastebydrae-afdeling uiteengesit het. Ek het met n paar lede gesels, en ek het die indruk gekry dat hulle positief is oor die herstrukturering en opgewonde is oor hulle intrede by die Vastebydrae-afdeling. Die nuwe lewensfase-strategie is n opwindende ontwikkeling vir die Vastebydraeafdeling en is daarop gemik om beleggingsbehoeftes aan te vul. Hierdie model is maklik om te verstaan en verg baie min betrokkenheid van die lid. Die nuwe strategie is effektief vanaf 1 Mei Die Fonds se administrasiespan verrig deur die jaar n verskeidenheid funksies om alles in die Kaapse Gemeenskaplike Pensioenfonds glad te laat verloop. Die span is verantwoordelik vir finansiële verslae, die voorlegging van maandelikse en halfjaarlikse belastingopgawes aan die SAID, die verwerking van eise, maandeindes, huisleningaansoeke, risiko-opsieveranderings en die maandelikse pensioenarisbetalings, die bywerk van nuwe lede, verandering van persoonlike gegewens en begunstigde-gegewens en navrae van werkgewers, lede, pensioenarisse en tussengangers. Die Fonds het op 30 Junie 2013 uit 1 95 lede en 4 66 pensioenarisse bestaan. Die volgende eise is verwerk vir die tydperk 1/0/ /06/2013: Onttrekkingseise 53 Egskeidingseise Aftree-eise Begrafniseise 33 Sterfte-eise 13

8 Actuarial Valuation as at 30 June 2013 Sean Neethling, Fund Actuary (MOMENTUM ACTUARIES) Defined Contribution (DC) Section Excellent fund returns of 24.4% p.a. were allocated to DC members shares for the year ending 30 June Since 1 December 2011, the actual investment returns earned on the assets underlying the DC Section are allocated to DC members shares. The monthly returns may be positive or negative, which means that members shares may increase or decrease from month to month. The funding level of the DC Section was 99.8% as at 30 June 2013 (assets of R483.6 million divided by members shares of R484.4 million). The slight shortfall was due to normal timing and cash flow mismatches between actual Fund returns and the return allocated each month. The shortfall was eliminated by a negative Fund return allocation of 0.2% of members shares. DC Section Investment Reserve The Investment Reserve was distributed to active DC members by means of a special bonus of 5% of members shares. Monthly investment returns allocated to DC members shares are no longer smoothed and may be positive or negative. The Investment Reserve now operates as a processing or mismatching reserve and may be renamed to reflect this. 8 Defined Benefit Section employer contribution rate The recommended employer contribution rate increased from 26.62% of salaries at the statutory actuarial valuation as at 30 June 2012 to 26.% of salaries at 30 June It should be noted that this employer contribution rate will only apply for active members remaining in the DB Section. Past service deficit The actuarial valuation revealed a past service deficit of R10 million. However, since 1 July 2013, favourable investment returns are estimated to have cleared the deficit by 31 December 2013, barring other sources of surplus or strain. Additional employer contributions received in terms of the conversion agreements would also have ensured that the deficit has been eliminated. Pensioner account The Trustees resolved to establish a pensioner account. The pensioner assets and liabilities will be represented by the pensioner account. The pensioner account was 100% funded as at the valuation date. The affordability of future pension increases will be driven by the funding level of the pensioner account. Pension increase and bonus The level of pension increases depends on the following: pension increase policy, which targets increases of 60% of price inflation investment returns (averaged over a 3 year period) affordability. Defined Benefit Section The financial condition of the Defined Benefit Section of the Fund was as follows: Financial condition 30 June 2013 DB Section (Rand) Pensioner account Value of assets Pensioner liabilities Surplus Funding level (Pensioner account) DB active members Value of assets Active member liabilities Paid-up members Surplus / (deficit) Funding level (DB active members) Overall funding level (DB Section) ( ) % ( ) (326) (130) 99.2% 99.% The investment performance of the Fund s assets over the last 3 years indicates that a pension increase in line with the current policy of 60% of inflation could be afforded. The Trustees granted a pension increase of 3%, effective 1 January A once-off bonus of 30% of monthly pension was paid in December DC Conversion The Fund has come a long way in reaching an agreement with the majority of the employers regarding the Defined Contribution conversion. The conversion offers converting members significant value in the Defined Contribution Section. Conclusion Although the DB Section funding level was slightly below 100% at 30 June 2013, I am confident that the Fund has since returned to a sound financial condition. Once the Financial Services Board approves the conversion, the Fund will have achieved an important milestone in ensuring its sound financial management. The results of the 2013 actuarial valuation revealed an overall funding level of 99.% (and a deficit of R10.03 million) in the Defined Benefit Section. This was an improvement compared to the 2012 actuarial valuation where the funding level was 99.4%. 9

9 Aktuariële Waardasie soos op 30 Junie 2013 Sean Neethling, Fondsaktuaris (MOMENTUM AKTUARISSE) Vastebydrae-afdeling (vb) n Uitstekende fondsopbrengste van 24.4% p.j. is vir die jaar geëindig 30 Junie 2013 aan die VB-lede se lidbelang toegewys. Vanaf 1 Desember 2011 word die werklike beleggingsopbrengste wat op die bates onderliggend aan die VB-afdeling verdien is, aan die VB-lede se lidbelang toegewys. Hierdie opbrengste kan van maand tot maand positief of negatief wees. Derhalwe kan lede se lidbelang van maand tot maand verhoog of verlaag. Die befondsingsvlak van die VB-afdeling was 99.8% op 30 Junie 2013 (bates van R483.6 miljoen gedeel deur lede se lidbelang van R484.4 miljoen). Die klein tekort was die gevolg van normale tydsberekening- en kontantvloei-ongelykhede tussen werklike Fondsopbrengste en die opbrengste wat maandeliks toegewys word. Die tekort is deur n negatiewe beleggingstoewysing van 0.2% van lede se lidbelang uitgewis. Vb-afdeling Se Beleggingsreserwe Die Beleggingsreserwe is aan aktiewe VB-lede toegeken deur middel van n spesiale bonus van 5% van lidbelang. Maandelikse beleggingsopbrengste wat aan VB-lede se lidbelang toegewys word, word nie meer gestabiliseer nie en kan dus die befondsingsvlak 99.4% was. Vastevoordele-afdeling werkgewerbydraekoers Die aanbevole werkgewerbydraekoers tydens die verpligte aktuariële waardasie (30 June 2012) het van 26.62% van salarisse tot 26.% van salarisse (op 30 Junie 2013) gestyg. Dit is belangrik om te noem dat hierdie werkgewerbydraekoers slegs vir aktiewe lede in die VV-afdeling sal geld. Vorige dienstetekort Die aktuariële waardasie het n vorige dienstetekort van R10 miljoen getoon. Sedert 1 Julie 2013 het gunstige beleggingsopbrengste egter teen 31 Desember 2013 die tekort uitgewis (ander bronne van oorskot of spanning uitgesluit). Addisionele werkgewer-bydraes ontvang vir die oorplasingsooreenkomste sou ook verseker het dat die tekort uitgewis word. Pensioenaris-rekening Die Trustees was vasbeslote om n pensioenarisrekening te bewerkstellig. Die pensioenarisse se bates en laste sal deur die pensioenarisrekening voorgestel word. Die pensioenarisrekening se befondsingsvlak was 100% op die waardasiedatum. Die bekostigbaarheid van toekomstige pensioenverhogings sal van die befondsingsvlak in die pensioenarisrekening afhang. Pensioenverhoging en bonus Die vlak van pensioenverhogings hang van die volgende af: beleggingsopbrengste (gemiddelde oor n driejaarperiode) pensioenverhogingsbeleid (wat 60% van prysinflasie ten doel stel) bekostigbaarheid. 8 positief of negatief wees. Die Beleggingsreserwe dien nou as n prosesserings- of ongelykheidsreserwe en kan dalk hernoem word om dit aan te dui. Vastevoordele-afdeling Die Fonds se Vastevoordele-afdeling se finansiële posisie is as volg: Finansiële status 30 Junie 2013 VV-afdeling (Rand) Pensioenarisrekening Waarde van bates Pensioenaris: laste Oorskot Befondsingsvlak (Pensioenarisrekening) VB aktiewe lede Waarde van bates Aktiewe lede: laste Volopbetaalde lede Oorskot / (tekort) Befondsingsvlak (VB aktiewe lede) Algehele befondsingsvlak (VB-afdeling) ( ) % ( ) (326) (130) 99.2% 99.% Die beleggingsprestasie van die Fonds se bates oor die laaste 3 jaar dui daarop dat n pensioenverhoging van 60% van inflasie wel toegestaan kon word. Die Trustees het n pensioenverhoging van 3% toegestaan, met ingang 1 Januarie n Eenmalige bonus van 30% van maandelikse pensioen is in Desember 2013 betaal. VB-oorskakeling Die Fonds het reeds n ooreenkoms met die meerderheid van die werkgewers bereik met betrekking tot die Vastebydrae-oorskakeling. Die oorskakeling bied vir lede beduidende waarde in die Vastebydrae-afdeling. Gevolgtrekking Alhoewel die VV-afdeling se befondsingsvlak op 30 Junie 2013 effens onder 100% was, is ek oortuig daarvan dat die Fonds sedertdien weer na n gesonde finansiële posisie teruggekeer het. Wanneer die Finansiële Diensteraad die oorskakeling goedkeur, sal dit vir die Fonds n belangrike mylpaal vir gesonde finansiële bestuur wees. Die resultate van die 2013 aktuariële waardasie het getoon dat die algehele befondsingsvlak in die VV-afdeling 99.% is (met n tekort van R10.03 miljoen). Dit is n verbetering wanneer dit met die 2012 aktuariële waardasie vergelyk word, waar 9

10 10 Communication Update Cathy Vorster (SASH CONSULTING) The restructuring of the Fund, specifically the process of transferring DB members to the DC Section, started in 2011, when the Board decided to start investigating permanent solutions to the DB problem. It was important that the various stakeholders were kept informed throughout this process and this was done through the Fund s communication channels, which included newsletters, special newsflashes, SMS notifications and open forums (such as information sessions) and the Annual General Meetings. The DB to DC conversion is now starting to realise, with the first transfers taking place in May It is the Fund s responsibility to provide you with adequate information to assist you in making informed decisions about the options available to you. PF 86 also requires that, whenever restructuring takes place in the Fund, sufficient time is provided in which you can ask any questions and/or raise any concerns you may have. We managed to address these requirements by creating a complete, individual communication process for each employer, with packs containing detailed information, engagement sessions (conducted in a understandable manner by Fund consultants and financial advisors) as well as helpdesks to assist with queries. This is also the first time that the Fund is offering flexibility surrounding member investment choice, through the introduction of the new Life Stage model. This will require more regular communication drives to ensure that you review your current investment options to best fit your personal needs. With all of these developments within the Fund, it is very important that you take control and actively plan for your retirement. Always read your communication and be on the lookout for member session in your area. Important dates to diarise! 23 May 2014: Annual General Meeting taking place at Sanlam Head Office, 9:00 31 August 2014: Deadline for submitting Certificate of Existence (Pensioners) 10 Kommunikasienuus Cathy Vorster (SASH CONSULTING) Die herstrukturering van die Fonds, en spesifiek die oorplasing van VV-lede na die VB-afdeling, het in 2011 begin, toe die Raad besluit het om permanente oplossings vir die VV-probleem te ondersoek. Dit was belangrik dat die verskillende belanghebbendes gedurende hierdie proses ingelig moes bly. Dit is deur die Fonds se kommunikasiekanale gedoen, insluitend nuusbriewe, spesiale e-pos nuusflitse, SMS-berigte en oop forums (soos inligtingsessies) en die Algemene Jaarvergadering. Die VV-tot-VB-oorskakeling is nou besig om n realiteit te word, met die eerste oorplasings wat in Mei 2014 plaasvind. Dit is die Fonds se verantwoordelikheid om u van genoegsame inligting te voorsien sodat u ingeligte besluite oor die opsies wat beskikbaar is, kan neem. PF 86 vereis ook dat, wanneer herstrukturering in die Fonds plaasvind, die lede voldoende tyd gegun word om enige vrae te vra of kwessies te opper. Ons het hierdie vereistes aangespreek deur n volledige, individuele kommunikasieproses vir elke werkgewer te skep, met inligtingspakke wat volledige inligting, datums vir inligtingsessies (op n verstaanbare manier aangebied deur Fondskonsultante en finansiële adviseurs), asook hulpkantore om vrae te beantwoord. Dit is ook die eerste keer dat die Fonds buigsaamheid met lede se beleggingskeuses bied, met die bekendstelling van die nuwe lewensfase-model. Dit sal meer gereelde kommunikasie verg om te verseker dat u u huidige beleggingskeuses hersien om by u persoonlike behoeftes te pas. Al hierdie verwikkelinge in die Fonds vereis dat u in beheer is en aktief vir u aftrede beplan. Lees altyd al die kommunikasie en moenie n inligtingsessie in u area misloop nie. Belangrike datums! 23 Mei 2014 Algemene Jaarvergadering by Sanlam Hoofkantoor, 9:00 31 Augustus 2014 Sperdatum vir die indien van u Bestaansertifikaat (Pensioenarisse)