Retirement Reform

Snap Survey

Johan Schreuder

Investec Asset Management

Social Security Fund

1. How would your fund be affected if all the members earning less than

R75,000 per year left to join a Social Security Fund offered by the State?

A.Insignificant – very few of our members earn that little

B.We'd have fewer members, but the fund would still serve a purpose

C.We'd have fewer members, so we'd have to question our existence

D.We'd have significantly fewer members, so we'd consider closing

Social Security Fund

2. What would you consider doing with the accumulated member benefits of

those members who left to join a Social Security Fund offered by the State?

A.Preserve in the existing fund

B.Transfer to the Social Security Fund (SSF)

C.Transfer to the SSF, but allow opt-out to an individual preservation fund

D.Offer various individual preservation funds, allowing members to choose

Economies of scale

3. “Most existing retirement funds do not have the necessary size to achieve

sufficient economies of scale, which leads to higher costs.”

A.Strongly agree

B.Agree

C.Disagree

D.Strongly disagree

Economies of scale

4. If your fund were to close due to insufficient economies of scale, what

alternatives would you consider for your members?

A.We'd encourage members to join the Social Security Fund

B.We'd encourage members to join an umbrella fund

C.We'd encourage members to join a retirement annuity fund

D.We'd make no recommendations, allowing members to choose

Economies of scale

5. If your fund were to close due to insufficient economies of scale, what

would you consider doing with accumulated member benefits?

A.Preserve in the existing fund

B.Transfer to an umbrella preservation fund

C.Transfer to an individual preservation fund

D.We'd make no recommendations, allowing members to choose

Increased contributions

6. How will your fund be affected once tax breaks are capped, for example if

contributions above R350,000 per year were "after tax"?

A.Insignificant – very few of our members earn that much

B.Some members affected, but their contributions will continue unchanged

C.Some members affected, and they’re likely to reduce their contributions

D.Most members affected, and some are likely to reduce their contributions

Increased contributions

7. How will your fund be affected once tax breaks are equalised at 27.5% of

the greater of “remuneration” and “taxable income”?

A.Insignificant – our contributions are already close to that level

B.We’ll consider increasing contribution rates, if members can afford it

C.We’ll consider using “remuneration” instead of “pensionable income”

D.We’ll give our members more choice regarding rates and incomes

Compulsory preservation

8. Do you think compulsory preservation is a good thing?

A.Yes, members should be prohibited from cashing in benefits

B.Yes, but a limited cash sum should be allowed on retrenchment

C.Yes, but a limited cash sum should always be allowed

D.No, members should always have the option of cashing in 100%

Compulsory preservation

9. What preservation options do you currently offer to members?

A.We encourage preservation in the new employer's fund

B.We encourage preservation in a specific individual preservation fund

C.We encourage preservation in a short list of individual preservation funds

D.We make no recommendations, allowing members to choose

Compulsory annuitisation

10. Do you think compulsory annuitisation is a good thing?

A.Yes, lump sum benefits should be prohibited

B.Yes, but lump sums should be allowed on death and disability

C.Yes, but lump sums should be allowed on death, disability and retirement

D.No, 100% lump sum benefits should continue to be allowed

Compulsory annuitisation

11. What annuity options do you currently offer to members?

A.Our fund pays all its own pensions

B.We've outsourced pensions to a single provider of annuities

C.We offer members a short list of conventional and living annuities

D.We make no recommendations, allowing members to choose

Retirement Reform Snap Survey

12. When considering an umbrella fund, retirement annuity fund,

preservation fund or living annuity, what is your main consideration?

A.Fees should be as low as possible

B.Members must be offered only quality-approved investment funds

C.Members must have the widest choice of investment funds

D.Members must have access to independent financial advice

Retirement Reform

Snap Survey

Johan Schreuder

Investec Asset Management