UNIVERSITY OF THE WITWATERSRAND RETIREMENT FUND (UWRF) (PROVIDENT FUND)

Transcription

1 HUMA RESOURCES DIRECTORATE PESIOS OFFICE UIVERSIT OF THE WITWATERSRAD RETIREMET FUD (UWRF) (PROVIDET FUD) WITHDRAWAL OR TRASFER OF BEEFIT DUE TO RETIREMET IFORMATIO SHEET PLEASE ESURE THAT THE ATTACHED DOCUMETS ARE COMPLETED AD RETURED TO THE PESIOS OFFICE PRIOR TO LEAVIG THE EMPLO OF THE UIVERSIT. WE STROGL RECOMMED THAT OU COSULT WITH A LICESED FIACIAL ADVISOR TO ADVISE OU WHE MAKIG THIS IMPORTAT DECISIO. 1. Factually, there are three options available on retirement from the UWRF, namely: 1.1 Take 100% of the benefit in Cash. 1.2 Purchase an Annuity of your choice with any registered South African insurer with 100% of the benefit. 1.3 Take a mixture of Cash and Annuity. There are tax implications for all of the above which your financial advisor can explain. 2. Please attach the following documents to your retirement application: 2.1 A certified copy of your identity document or passport. 2.2 An original bank statement or cancelled cheque should you be taking any of the benefit in cash. 2.3 The Application to the Trustees for a Lump Sum Payment signed by your spouse, if any, and yourself should you be taking any portion of your retirement benefit in cash. 2.4 Should you be taking any of your retirement benefit in the form of an annuity, a copy of the signed annuity proposal. 2.5 A copy of your letter from HR if your retirement is early i.e. prior to age Payment of your provident fund benefit will take an estimated 4 to 6 weeks from the end of the month in which you have retired, providing your tax affairs are in order and your documentation is submitted timeously. Please make financial provision for this. 4. Please complete, sign and return all original documents to: The Pensions Office Mailbox Room th Floor Senate House 5. Should you have any queries please contact the Pensions Office: Mary Elsmore Sakhile konyane Room 9000 Room (011) (011) mary.elsmore@wits.ac.za sakhile.nkonyane@wits.ac.za

2 UIVERSIT OF THE WITWATERSRAD RETIREMET FUD RETIREMET OTIFICATIO FORM Fund umber: Membership umber: Information to be completed by the member 1. RETIREMET PARTICULARS Member s surname Forenames Staff number ID no. (Attach certified copy) _ Date of retirement (dd/mm/yyyy) / / Last contribution (mm/yyyy) / Portion of retirement benefit required in cash (rand amount or 100% cash) Portion of retirement benefit required in the form of an annuity (balance or 100% annuity) ame of annuity Contract number Registered SA Insurer Contact person/ Financial Advisor (Attach a copy of the signed annuity proposal form). 2. MEMBER PARTICULARS Member s contact details (Contact number/s) (Personal address) Tax no. Residential address Code Amount of tax-free benefit transferred into this fund from a public sector fund R Date joined public sector fund (dd/mm/yyyy) 3. PRIOR LIE DETAILS 3.1 Where the scheme or employer has concluded a formal home loan agreement with a lending institution, do you have an outstanding loan in terms of this agreement? If yes, please provide details 3.2 Are there any divorce orders against the fund in respect of your membership? If yes, please attach a certified copy of your complete divorce decree. 3.3 Are there any maintenance orders against the fund in respect of your membership? If yes, please attach a certified copy of the final maintenance order. 3.4 Are there any other prior liens against the fund in respect of your membership? If yes, please attach copies for validation. 4. PAMET PARTICULARS FOR A CASH BEEFIT REQUEST I request Liberty Corporate to pay any cash amount due to me by direct deposit into my bank account: ame of bank Branch Account no. Branch no. Type of account (An original bank statement or cancelled cheque must be attached for verification purposes otherwise processing could be delayed. If the name of the account holder differs due to marriage then a certified copy of the marriage certificate must be attached.) MEMBER S SIGATURE DATE Page 1 of 2

3 5. FIACIAL ADVISOR S DETAILS ame Financial Advisor s code Contact number address Financial Advisor s declaration I declare that I am registered to market Retail Pension benefits under the Financial Advisory and Intermediary Services Act and accept the consequences thereof. Signature of Financial Advisor Date Information to be completed by the employer 6. EMPLOER S DECLARATIO Employer details 6.1 Employer PAE reference no Employer contact person ame: Ms Mary Elsmore Work telephone number: +27(011) address: mary.elsmore@wits.ac.za 6.3 Employer postal address University of the Witwatersrand Private Bag 3 Wits Employer physical address University of the Witwatersrand 1 Jan Smuts Avenue Braamfontein The member is to retire in terms of the following provisions of the rules (tick appropriate box): Attainment of normal retirement age Late retirement Early retirement with the employer s consent (attach letter from HR) Early retirement due to ill-health (medical evidence will be required) AUTHORISED SIGATOR (PRIT AME AD SIG) DATE Employer Stamp Page 2 of 2

4 Page 1 of 3 UIVERSIT OF THE WITWATERSRAD RETIREMET FUD (UWRF) APPLICATIO TO THE TRUSTEES FOR A LUMP SUM, OR PARTIAL LUMP SUM, PAMET O RETIREMET The Rules of the UWRF allow for the purchase of an annuity, payment of a cash lump sum or any combination of the two on retirement from age 55. The payment of a cash lump sum is subject to retirement lump sum tax and income from an annuity is subject to income tax. The intention of the UWRF is to pay benefits in the event of retirement in order to assist members and their dependants after retirement. Should a member wish to opt for a lump sum, or partial lump sum, payment the trustees of the UWRF have to ensure that they have fulfilled their legal obligations to the member and specifically also to the spouse of the member. The member and his or her spouse must be made aware of the potential loss of income should any portion of the benefit be commuted for cash. Members are therefore required to complete this form in order for any cash payment to be approved by the trustees. A member will generally have the following considerations when choosing the form of their retirement benefit: Future cash flow Protection against future inflation Provision for any spouse or dependants Investment risk Longevity risk Immediate cash needs Costs Members may purchase an annuity of their choice with any registered South African pension provider at retirement. When you purchase an annuity the transfer of benefits will generally be tax free Annuities generally available in the market have the following characteristics: Income is either guaranteed or not Income may be guaranteed for a certain period There may be explicit provision for a spouse s pension There may be fixed, inflation or investment linked or variable increases in income There may be no longevity risk for yourself or your spouse or, with an investment linked life annuity, you may take all the longevity risk Either you or the pension provider may take the investment risk or you may take the investment risk with future increases only Costs can either be once-off and/or on-going If you take any portion of your benefit in cash, the cash portion will be subject to retirement fund lump sum tax as per SARS legislation which is reviewed annually and subject to change. The following table is as per current tax legislation: Cash Rand Amount Rate of Tax R0 R % R R % R R % R and above 36% Any portion of your cash lump sum that has been taxed before, such as a transfer from the AIPF, will not be taxed. Any cash lump sum taken from other retirement funds, such as previous withdrawal benefits and/or commutation from retirement annuities, are included in the calculation of tax payable on an accumulated basis therefore the above brackets would reduce accordingly. The structure of the table therefore encourages annuitisation or converting your benefits into an income. Any portion of your benefit utilized to purchase an annuity will generally be transferred tax free into that annuity.

5 Page 2 of 3 QUESTIOAIRE The trustees encourage you to obtain financial advice from a licensed financial advisor: 1. Have you taken advice from a financial advisor? ES O 2. Is the financial advisor FAIS accredited? ES O 3. What is their FAIS registration number?. 4. Has the advisor given you a record of his/her advice? ES O 5. Have you seen a copy of the adviser s FAIS accreditation? ES O 6. What advice have your been given and what product will you purchase or what investment will you make? 7. Do you have other sources of retirement income?? ES O 8. If yes, please describe the sources of retirement income. 9. What protection will your investment give you against inflation? 10. What tax charges will your investment incur in future? (ote that there are no tax charges on investments in annuities) Do your investment plans make provision for your spouse and other dependants in the event of your early death? Will your investment plans provide you and your spouse with sufficient income as long as you live? 13. Is your spouse fully informed and in agreement with your plans? (our spouse must acknowledge agreement by signing at the end of this document). ES O 14. If you do not intend to use the cash lump sum to purchase an annuity, please explain the advantages of your intended investment The trustees wish to ensure that you get the best value by insisting that you are given the following information by your financial advisor for each investment that you will be making: 1. What is the tax that you will be paying on your lump sum benefit and what is the marginal tax rate as per the table on page 4? 2. What will the surrender value of your investment be in each of the next 5 years? What initial and annual charges will be paid to all the service providers?.. 4. What guarantees are given and what charges are made for these guarantees? 5. What provision is made for inflation?

6 Page 3 of 3 DECLARATIO B MEMBER AD SPOUSE To the Board of Trustees, University of the Witwatersrand Retirement Fund (UWRF the Fund ) Declaration by the Spouse I,, the undersigned, declare that I am the spouse of the member whose details appear below and that I am familiar with the content of the retirement notification form signed by my spouse. I further acknowledge that by signing this declaration I am in agreement that the UWRF retirement benefit due to my spouse be taken as a cash lump sum, or partial cash lump sum payment. Signature (print and sign name).. Identity/Passport umber.. Witness (print and sign name) Declaration by the Member of the UWRF I,., the undersigned, declare that I am leaving the service of the University of the Witwatersrand through early/normal or late retirement and hereby request that the trustees of the UWRF permit me to take my retirement benefit, or a portion thereof, from the Fund in the form of a cash lump sum. I hereby indemnify the University of the Witwatersrand, the trustees of the UWRF, officers and administrators of the Fund and all other involved parties, from any further liability in respect of my proceeds from the Fund, and hereby relinquish the right to any further claim against the Fund and any of its officers. Signature.. Identity/Passport umber.. Witness (print and sign name)