johan botha nbc holdings (pty) ltd. or provident fund value as at 28/02/2015 provident benefit as at...
TRANSCRIPT
IMPACT OF
RETIREMENT REFORMS
Johan BothaNBC Holdings (Pty) Ltd
OR
ProvidentFund value
as at
28/02/2015
ProvidentBenefit
as at
01/03/2015
Interest on
ProvidentBenefit
Pension Benefit(Contributions from 03/2015 +
interest)
Providentbenefit
as atRetirement date
1/3rd
Lump sum
2/3rd Monthly pension
01/03/2015 RETIREMENT
Administration charges: Creation of additional member record Administration fee structures -
One set fee, orA set fee plus a rider fee
Member communication/education: Impact of reforms Allaying fears Pension/annuity options
Lump sum Disability Benefits (PTD): From lump sum to ‘ill health retirement’
Set-up cost for Employer: Changes to pay roll system Adjustments to salary statements
From payslip to cash flow statement: Personal financial planning.
Transfer after 1 March 2015: Hybrid arrangements…??
Changes in ‘Take Home Pay’(7.5% Member contribution Provident Fund)
SALARY pm
CONTR. Pre 2015 Post 2015
THP (+)
R 5 000.00
R 375.00
R 4 625.00
R 4 625.00
R 0.00
R10 000.00
R 750.00
R 8 511.00
R 8 646.00
R 135.00
R15 000.00
R1 125.00
R12 204.00
R12 438.00
R 234.00
R20 000.00
R1 500.00
R15 579.00
R15 951.00
R 372.00
Tax saving to work for you(R100.00 pm @ 10% interest)
TERM PROCEEDS
PREMIUM RETURN
5 years R 7 717.00
R 6 000.00 R 1 717.00
10 years R20 145.00
R12 000.00 R 8 145.00
15 years R40 162.00
R18 000.00 R22 162.00
Members 55 years and older
Employer : Contribution Holiday
Consolidation of Funds
THANK YOU