WHEN DID THE FUND COMMENCE?
The University of the Witwatersrand Retirement Fund commenced on 1 January 1995.
WHO MAY BELONG TO THE FUND?
All eligible employees of the University may choose to join the Fund.
An eligible employee is someone whose contract of employment is valid for a period exceeding one year, or someone whose employment is subject to the ongoing receipt of a grant sufficient to cover the contributions to the Fund.
HOW MUCH IS PAID INTO THE FUND ON MY BEHALF?
Members are not required to contribute to the Fund.
The University contributes 23.5% of your Retirement Funding Income (RFI) into the Fund each month in respect of retirement benefits, insured benefits and expenses.
You can structure your RFI within your gross remuneration package, subject to approved guidelines. However, it must be understood that the lower your structure your RFI, the lower your current and future benefits will be
WHAT HAPPENS TO THESE CONTRIBUTIONS?
Each Member has a personal account in the Fund known as a Share of the Fund.
The University’s contributions of 23.5% of your RFI, minus the costs of insurance and expenses, are paid into your Share of the Fund on a monthly basis.
Your Share of the Fund is then invested with the rest of the Fund’s assets, and grows with Fund Interest as determined by your Investment Choice.
Fund Interest will vary from time to time, depending on the performance of the Fund’s investments. It is possible that this may be negative over a period, although this is unlikely over the medium to long term.
ADDITIONAL VOLUNTARY CONTRIBUTIONS
Your employer’s contributions are added to your salary as a taxable fringe benefit. You can claim a tax deduction on contributions to all the pension, provident and retirement annuity funds that you belong to, up to 27.5% of the higher of your remuneration or taxable income, and up to R 350 000 every year. Member and employer contributions form part of this tax-deductible limit.
If you contribute more than R 350 000 in a year, the contribution that is more than this is added to your contributions in future years and will be deductible in future years if it’s within the limits of that year. At retirement, if there are any contributions that you didn’t get a deduction on, this will be set off against your retirement benefit and added to the tax-free amount you are entitled to on retirement or the amount you take as a pension.
As such, the Trustees have amended the rules of the Fund to allow you to contribute an additional 4% of your Retirement Funding Income to the Fund, so that you can take advantage of the tax deduction of up to 27.5% of your remuneration or taxable income.