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UCTRF Contact Details

Street Address: Room 134, Bremner Building, University Crescent, Rondebosch

Postal Address: University of Cape Town, Private Bag X3, Rondebosch 7701

Email: uctrf-enquiries@uct.ac.za

Telephone: 021 650 2934

Scan to visit UCTRF website on your mobile

NewsletterFourth Quarter 2019

Dear Member

Each year seems shorter than the previous one and while we move into the full swing of exams and the year-end, we cannot help but look back. While time may seem to be racing along, the UCTRF Trustees urge members to make sure that their savings goals are on track.

As we approach the end of the year it may be a good time to make sure that your financial matters are in order. This may include ensuring that you are on track for a financially secure retirement and also ensuring that your Nomination of Beneficiary form is up to date. By updating your Nomination of Beneficiary form, you will ensure that your dependants will be looked after should anything happen to you.

In July we provided all our active members with projection statements, which provide you with an estimate of the pension you can expect to retire on expressed as a percentage of the estimated salary you would be earning at retirement. For many of you this percentage was worryingly low. In addition, member benefits statements were provided to all members in September. Armed with this information, this is an excellent time to make a resolution to improve your retirement outcome. As most of us expect to receive salary increases in January, this is a good time to consider increasing your retirement savings. Remember also that you get tax relief on your contributions. We explain this in more detail below.

We hope you will stay safe over this period and enjoy well-deserved time with family and friends!

2019 AGM

This year we will be hosting our AGM at the NEVILLE ALEXANDER LECTURE THEATRE 1A on Wednesday 11 December 2019 at 10h00 to 12h00. For those of you who cannot make it please visit our website to view the AGM report and presentations, which will be published after the event.

Important notice:

If you have recently updated your cell number, please notify HR. This will enable us to send you an SMS notifying you of the availability of the newsletter and other UCTRF communication. If you also supply an email address this will allow you to “opt in” to receive electronic versions of the member communication rather than the hard-copy versions.

Penny FabrePrincipal Officer

Page 2 UCTRF Newsletter | November 2019

COE increases and the opportunity to change your DPA or make additional contributions to the UCTRF

Most staff will be getting increases at the beginning of 2020. When you receive your new COE letter for 2020 we suggest you consider your contribution rate to the UCTRF with care and with your long-term future in mind (increased deductions for retirement savings reduces your short-term cash flow).

Ways to save in the UCTRF

When your salary increases you have the opportunity to:

Revise your Deemed Pensionable Amount (DPA): this can be any percentage between 50% and 100% of your COE; and/or Make additional contributions to the UCTRF of between 1% and 10% of your DPA.

What is the difference between increasing your DPA and making additional contributions?

Increasing your DPA

You should opt to increase your DPA if you wish to:

i. save more for retirement; and ii. maximise your death and disability cover.

Remember that your contributions are a percentage of your DPA and your death and disability benefits are also based on your DPA. Increasing your DPA will therefore increase both your contributions to the UCTRF and your death and disability cover. However, when your cover increases so do your premiums. In addition, the UCTRF administration fee is based on a percentage of your DPA, so increasing your DPA will also increase your administration fee (in rand terms).

Making additional contributions to the UCTRF

If you want to increase your contributions to the UCTRF but do not need additional death or disability cover, then you may want to consider making additional contributions to the UCTRF. You can choose to make additional contributions of between 1% and 10% of DPA. These contributions are pure retirement savings and no additional deductions are made.

SANLAM RETIREMENT FUND WEB PORTAL

AND MY RETIREMENT APP

www.retirementfundweb.co.za

Update your beneficiary details online

Membership certificates

Benefit statements

Detailed breakdown of contributions & costs

Online investment switching

Single sign-in for web / app once you are registered

Page 3UCTRF Newsletter | November 2019

Retirement Benefits

Human Resources Retirement Process

Annually in January, HR (Retirement Office) runs a report to identify all staff who will be 65 years of age by end December.

In May a communication (memo) is sent to all Deans/EDs informing them of who will be retiring in their Faculties /Departments by the end of the year.

The Departments will prepare the HR145 forms and send to the Retirement Office to confirm the retirement.

In June the Retirement Office will send out the necessary letter confirming the retirement and the necessary communication & documentation to be completed by the retiree and returned to the Retirement Office for processing.

In September the UCTRF Office arranges a workshop to take retirees through the documents and the options available to them.

The Retirement Office will complete a UI-19 form and issue this to the staff member to register for unemployment benefits with the Department of Labour in the new year.

Retirees are issued with a retiree’s card to use for access to the UCT Libraries.

Professors and Associate Professors who retire will be identified for Emeritus status. This is communicated to the Registrar’s Secretariat for approval by Council. Once approved, communication is prepared by the Retirement Office for the VC’s signature and sent to the staff identified. The Retirement Office will update the HR system to reflect this status.

UCTRF Retirement Process

When you exit the UCTRF, you will receive your UCTRF benefit within 4 to 8 weeks from the last day of the month of your employment. Any portion of your benefit that you elect to take in cash will be paid within 15 business days from the last day of the month of your employment, provided that all the necessary documentation has been received and your tax affairs are in order. Similarly, any portion of your benefit that you elect to use to purchase a life annuity or a living annuity outside of the UCTRF will be transferred to the relevant insurer. In both cases your fund credit will be transferred to the Near Cash Portfolio until payment is made to you or the insurer, as the case may be. If you elect a UCTRF living annuity your fund credit will be transferred to the Near Cash Portfolio. The balance will then be transferred to the selected portfolio/s, unless your full fund credit (100%) is taken as a living annuity with the UCTRF (with no deductions) and you are not changing investment portfolios. In this case your fund credit will remain invested in the portfolio/s in which it was invested immediately prior to your retirement.

Page 4 UCTRF Newsletter | November 2019

The other side of the retirement coin

The most public retirements are usually those of the rich and famous, with sports stars receiving much attention. When AJ Venter announced his retirement from international rugby in 2007, South Africans watched in wonder about his plan – how would he survive? Michael Jordan retired in 1993 and returned to sport, giving the world perspective into the reality of suddenly not feeling of use in the area where you once excelled.

Last year, the BBC reported that half of retired sportspeople have concerns over mental and emotional well-being. Even the best-prepared athletes report that the loss of a career can be quite similar to the loss of a loved one: shock or denial, despair, anger, depression, pre-occupation, re-organisation, and finally acceptance.

Similar to these athletes, you likely enjoyed some grand and memorable victories that helped define your identity during your career. In the absence of their career and craft, many people feel useless, bored, or old before their time. This can create a sense of unfamiliarity and confusion – but there are some tried and trusted ways to beat the retirement blues.

After a long and successful career, you may feel absolutely equipped to deal with the last transition: to retirement. But even a professional baseballer has to do physio after their very last swing. It’s never too late to ask for help, even when your current community can’t assist. The South African Depression and Anxiety Group (SADAG) does phenomenal work in support of pensioners. You can definitely beat the Retirement Blues, maybe even knock them out the park!

STAY ACTIVE

You’re likely to find yourself much less active during retirement,

so it’s good to make use of that unspent energy. A part-time job, charity work or hobby will keep your brain active and prevent

negative thoughts. If you work a few days a week, you’ll have

some extra money and likely be more grateful for your free time.

STAY CONNECTEDConnection and community

are some of the best treatments for depression and anxiety.

Retirement affords you extra time to bond with friends and family, who reinforce your importance

in the world. Bonding with them gives you the chance to get out of the house, and attend events you enjoy. Now’s the

time to really get to know your grandchildren.

STAY SOLVENT

Financial distress is one of the biggest contributors to

psychological strain. Getting rid of all your debt (and not getting into any more!) is a simple way to give yourself added peace of

mind. Review your insurance and medical aid and ensure that it is sufficient, but not over the top.

Consult a financial advisor if you feel you’re drowning – dodging common money mistakes saves

you in the long run.