Glossary
A brief explanation of the terms commonly used in your Retirement Fund.
| Approved Fund | A pension fund or provident fund approved as such by the Revenue Authorities or in terms of such other legislation as may apply from time to time, for the purpose of the Rules. |
| Beneficiaries | These are the people who receive your benefits in the event of your death. |
| Defined Contribution | The Fund operates on a defined contribution basis. That means that your contribution towards the Fund is defined in the Rules and your retirement benefit is dependent on the contributions made to the Fund throughout your years of service and the investment return thereon. In a defined contribution fund the risk of investment losses is carried by you, the member. If the investments do not perform well, you will have less money accumulating towards your final benefit. |
| Dependants |
These are the people you are legally and/or financially responsible for looking after, ie: o In the opinion of the Trustees, upon the death of the member is in fact dependent on the member for maintenance; o The spouse of the member, including a party to a customary union according to Black Law and custom, or to a union recognised as a marriage under the tenets of any Asiatic religion; o The child of the member, including a posthumous child, an adopted child and an illegitimate child; o A person, in respect of whom the member would have become legally liable for maintenance, had the member not died. |
| Fund Credit | Your Fund Credit is made up of: • The net contributions which was allocated towards retirement funding (contributions less costs of administration, risk benefits and other administrative costs); plus • Any amounts you transferred into the Fund from a previous employer or fund; plus • Net investment returns earned on the above amounts. |
| Investment Returns | The contributions towards your retirement benefits are invested inan investment portfolio selected by you as a member (except for the NBC members, where the invested portfolio is selected by the trustees). The investment return is the growth (or loss) on the assets in that specific portfolio. The higher the investment growth achieved, the higher the benefits you will eventually receive from the Fund. However, there is always the risk that the investmentswill perform poorly, especially over short term period, in which case the value of your benefit (Fund Credit) may decrease. The investment return passed on by the asset manager is after the deduction of investment management fees (Net investment return). |
| Nominee | A person, not necessarily financially dependent on you, nominated to receive a portion of your death benefit from the Fund. These are thepeople you record in your Nomination of Beneficiary form. |
| Normal Retirement Age | The last day of the month in which you reach your Normal Retirement Age. |
| Pensionable Salary | General Members – 75% of your total cost to company package. NBC Members – 100% of basic salary |