RETIREMENT FUND PRESENTED BY: Mr. Z. E. E. Letjane FAIS NO.: 27598 Mr. J. B. Malebane FAIS NO.: 17586
Accommodate all current and future Municipal Managers including Section 56 and 57 employees of South African Local Government into one national fund Accommodate fixed term period of employment / contract (5 years) Accommodate Structured Remuneration Package in terms of SARS guidelines Standardize Retirement Benefits Structures and Costs Nationally for all Municipal Managers including Section 56 and 57 employees Consolidate all Municipal Managers including Section 56 and 57 employees to achieve economies of scale, and ensure proper governance and management control of the Fund.
All Managers including Section 56 and 57 employees in Local Government. Aged older than 16 younger than 64 years.
Resignation / Dismissal Ill-Health / Disability Benefits Retirement Benefits Death Benefits Funeral Benefits Housing Loan (Surety)
MEMBER : 7.5% EMPLOYER : 10% or 15% or 18% We urge all Municipalities to ensure that contributions are paid to the Fund by the last working day of each month. At the latest Contributions must be paid before the 7 th of every month. Interest will be charged on Monthly Contributions received after the 7 th of the month in terms of Section 13A of the Pension Fund Act, 1956 as amended.
GROSS SALARY EMPOLYEE CONTRIBUTION EMPLOYER CONTRIBUTION TOTAL CONTRIBUTION 7.50% 18% 25.50% 30 000.00 2 250.00 5 400.00 7 650.00 35 000.00 2 625.00 6 300.00 8 925.00 40 000.00 3 000.00 7 200.00 10 200.00 45 000.00 3 375.00 8 100.00 11 475.00 50 000.00 3 750.00 9 000.00 12 750.00 55 000.00 4 125.00 9 900.00 14 025.00 60 000.00 4 500.00 10 800.00 15 300.00 65 000.00 4 875.00 11 700.00 16 575.00 70 000.00 5 250.00 12 600.00 17 850.00
GROSS SALARY EMPOLYEE CONTRIBUTION EMPLOYER CONTRIBUTION TOTAL CONTRIBUTION 7.50% 15% 22.50% 30 000.00 2 250.00 4 500.00 6 750.00 35 000.00 2 625.00 5 250.00 7 875.00 40 000.00 3 000.00 6 000.00 9 000.00 45 000.00 3 375.00 6 750.00 10 125.00 50 000.00 3 750.00 7 500.00 11 250.00 55 000.00 4 125.00 8 250.00 12 375.00 60 000.00 4 500.00 9 000.00 13 500.00 65 000.00 4 875.00 9 750.00 14 625.00 70 000.00 5 250.00 10 500.00 15 750.00
GROSS SALARY EMPOLYEE CONTRIBUTION EMPLOYER CONTRIBUTION TOTAL CONTRIBUTION 7.50% 10% 17.50% 30 000.00 2 250.00 3 000.00 5 250.00 35 000.00 2 625.00 3 500.00 6 125.00 40 000.00 3 000.00 4 000.00 7 000.00 45 000.00 3 375.00 4 500.00 7 875.00 50 000.00 3 750.00 5 000.00 8 750.00 55 000.00 4 125.00 5 500.00 9 625.00 60 000.00 4 500.00 6 000.00 10 500.00 65 000.00 4 875.00 6 500.00 11 375.00 70 000.00 5 250.00 7 000.00 12 250.00
1. An existing member or a prospective member may apply; 2. A member may only buy back actual service, in other words, payment to the Fund may only be made for periods actually served as a Municipal Official whilst the Municipal Official was not a member of the Fund. 3. A member may buy back less service than the period actually served. 4. Any buy-back of service will be based on the salary which the member is earning in the position or office which he/she occupies at the date of application.
5. The following contributions apply to the buy-back of service: Member: 7.5% plus Employer portion of 10% or 15% or 18% of salary referred to in (4) above, multiplied with the number of years bought back. 6. The amount referred to in (5) may be paid to the Fund in a lump sum and no interest is levied. 7. The amount may be paid in equal instalments over a 36 month period with interest (presently 15% per annum compounded). Should a member die or withdraw from the Fund for any other reason, before the full amount owed for buy-back of service is repaid, the outstanding balance shall be recovered from the benefits payable to the member or the member s dependants / beneficiaries.
Members Contribution PLUS Employer Contribution LESS Risk and Administration Cost PLUS Interest and Investment Returns
A gratuity Lump Sum Benefit equals to: Fund Credit only
LUMP SUM equals to: The member s Fund Credit PLUS an insured amount of 3 X members Annual Salary
Early Retirement Age: 55 years. Normal Retirement Age: 65 years. **************** A gratuity Lump Sum equals to: 1 / 3 rd of Member s FUND CREDIT Balance of 2 / 3 rds to purchase Annuity from a registered Insurer.
LUMP SUM equals to: Fund Credit PLUS an insured amount of 3 X members Annual Salary
Member / Pensioner R30 000 Spouse R30 000 Children > = 14 years < 21 years R30 000 Children > = 6 but < 14 years R15 000 Children > = 1 but < 6 years R10 000 Children < 1 (excluding Stillborn) R7 500 Stillborn R7 500
1. In terms of Section 19(5) of the PFA of 1956, as amended 2. Loan Provider: IEMAS Financial Services (cooperative) 3. Pension Backed Housing Loan 4. Max 80% of withdrawal Benefit 5. Maximum repayment period 20 years OR 65 years 6. Interest Rate: Prime rate 7. For members who own property only
1. Employment Contracts 2. Contractual Disputes 3. Legal Representation 4. Awards and Settlements 5. Unfair Labour Practice 6. Sexual Harassment 7. Disciplinary Hearings
No. 7 Disa Road Extension 8 Kempton Park 1619 Tel: +27 11 578-5333 Fax: +27 11 578-5399 Suite 301, 25 Richefond Circle, Ridgeside Office Park UMHLANGA, KwaZulu Natal 4319 Tel: +27 31 562-1119/55 Fax: +27 31 562-1764 Private Bag X36 Kempton Park 1620 Website: www.akafin.co.za Email: pension@akafin.co.za