Contribution rates are set as a percentage of pensionable salary and are currently as follows:
- Member contribution: 6%
- Employer contribution: 9%
The following deductions are made from the above contributions to ensure that you have risk benefits under the fund:
- Group Life premiums – 1.61%
- Disability premiums – 0.71%
- Funeral premiums – R20 per month
- Operational fund expenses – 2.58%
The balance of contributions after deductions are added to the member’s pension funding interest in the Fund. Members are encouraged to make additional voluntary contributions towards the Pension Fund to utilize the tax benefits and at the same time as you are saving towards your retirement.