| RETIREMENT FUND MEMBERSHIP MANUAL
OPTIONS FOR DEFERRED PENSIONERS Legal disclaimer: •
he information contained in this guide does not constitute advice by the Board of Trustees, its advisors or T staff; and
•
M embers may need to seek expert financial advice before making a decision
Dear Deferred Pensioner A while ago you had retired from the service of CPUT and decided to leave your benefits in the Fund. This letter just serves to remind you what options are available to you as a deferred pensioner. Your options are as follows: • Continue to defer your benefits in the Fund – i.e. stay in the Fund until you decide to retire from the Fund or transfer your benefits out of the Fund into a retirement annuity fund or a provident preservation fund • Transfer your benefits to a retirement annuity fund or a provident preservation fund of your choice • Retire from the Fund ( start taking a pension) These options are explained further below.
CONTINUE DEFERRING YOUR BENEFITS IN THE FUND – staying a “deferred pensioner” – RETIRE LATER This means that your full benefit stays invested in the Fund UNTIL you decide to retire from the Fund or transfer your benefits to a retirement annuity fund or a provident preservation fund. Your benefit in the Fund is called a DEFERRED PENSIONER ACCOUNT and is equal to your Member Share Account at the point of deferment, plus investment returns, less any benefits paid out (e.g. divorce orders etc.) less fees. The fees are R54,61pmpm plus VAT. Note: Your MEMBER SHARE ACCOUNT is made up of 3 different pots. These are: • Your Vested Pot – may include your Vested and non-Vested portion. • Your Savings Pot • Your Retirement Pot
For more information regarding the Two pots system and an explanation of the different pots, please go to the CPUT Retirement Fund web-site and click on “Two Pots”
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