Lesson 4 – Pension Fund

EVANDER GOLD MINES RETIREMENT POLICY:

  • Normal retirement age for all employees – 63 years.
  • The last day at work will be at the end of the calendar month in which the member attains the normal retirement age.
  • The companies official retirement age is 63 years for all it’s employees.
  • All employees will be permitted to work until 63 years of age provided there is no significant risk for the employee within his/her role.
  • Age has direct consequences in terms of competence and ability. Some job categories may well be having significant risk exposure.

 

ENGAGEMENT OR RE-ENGAGEMENT OF PENSIONERS OR PERSONS ABOVE RETIREMENT AGEVANDER MINES RETIREMENT POLICY:

  • It is not group policy to engage or re-engage persons above the normal retirement age
  • Only in exceptional circumstances with prior approval of the General Manager may persons above the normal retirement age be engaged or re-engaged
  • The risk profile of a particular job will guide the General Manager in decision making.

 

PENSION FUND:

  • Currently one of the largest self administered funds in South Africa
  • Registered in terms of the Pension Funds Act No 24 of 1956, Income Tax Act No 58 of 1962
  • Normal retirement age – 62 years and 6 months
  • The last day at work will be at the end of the calendar month in which the member attains the normal retirement age
  • Membership is compulsory
  • On retirement, member gets one third of the total benefit in a cash lump sum
  • Other two thirds is paid in the form of a pension over the rest of the members life
  • Pension is paid into members bank account monthly.

Offers better tax benefits to the member:

  • Monthly contributions are tax deductible
  • First R 300 000 of lump sum is not taxable
  • Receipt of private pension disqualifies you from obtaining state old age pension grants

Benefits:

  • Withdrawal
  • Retrenchment
  • Retirement
  • Insured (disability or death)

PROVIDENT FUND:

Normal retirement age:

  • 60 years for underground workers
  • 63 years for surface workers

“The last day at work will be at the end of the calendar month in which the member attains the normal retirement age”

  • Membership is compulsory
  • Member gets full benefit paid in cash lump sum
  • Option offers more flexibility through options
  • Investment option. Buy a private pension for life through private pension company
  • Less than R 30 000 of any total lump sum is not taxable
  • You qualify for state old age pension to the value of R 1420 per month

Benefits

  • Withdrawal (dismissal and/or resignation)
  • Retrenchment (member and company contributions with interest)
  • Retirement (as per age rules)
  • Insured (disability to member, death to designated relative)
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