Annual Overview 2020 - Unisa Retirement Fund
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Annual Overview
2020
Contact Us Content
Dedicated Help Desk - Pensioners Introduction by the Principal Officer 3
and Members
Message from the Chair 4
Email: info@unisarf.co.za
What’s new in the retirement world? 5
Principal Officer
Member matters 7
Mr Jeffrey Mokadi
Email: mokadmj@unisa.ac.za Fund management 9
General Queries – Pensioners Tips and things to do before December 10
Email: unisa.pension@aforbes.co.za
Administrators
Alexander Forbes
Private Bag X21
Brooklyn Square
Pretoria
0075
Telephone: 0860 100 333
Email: afonlinehelp@aforbes.co.za
Website: www.alexanderforbes.co.za
Complaints
If you are not comfortable with the Administrator’s or the Principal Officer’s handling of your query, you may lodge
a formal written complaint with the Board of Trustees. If the Board of Trustees is not able to resolve the issue to your
satisfaction within thirty days upon receipt of your written complaint, you may direct your complaint to the Pension
Funds Adjudicator.
However, please bear in mind that the Board of Trustees must act in line with the Rules of the Fund, and the Pension
Funds Adjudicator cannot grant benefits that are not allowed in terms of the Rules of the Fund. Furthermore, the
Adjudicator has the power to make you pay costs if you submit frivolous complaints against the Fund.
Contact details of the Adjudicator
Tel: 012 748 4000 or 012 3461738
Email: enquiries@pfa.org.za
Disclaimer
Whilst care has been taken in the compilation of this publication, the editors and publishers do not accept responsibility for any loss or
damage that may be sustained as a result of reliance by any person on the information contained herein. No information contained
herein constitutes an offer for sale, or recommendation, of any service or product and is also not financial or investment advice. No
warranty is provided that the information is appropriate or suitable for any particular purpose, or that it is complete or accurate. In the
case of any discrepancies the Rules of your Fund shall prevail.
2
Introduction
by the Principal
Officer
Dear Member/Pensioner
I think we can all agree that nothing about the year that is almost behind us has been either predictable or normal. After
the market crash of April, August saw some of the best monthly equity returns in more than two decades as corporate
earnings performed better than expected, and news of a COVID-19 vaccine sounded promising at the time. Emerging
markets also outperformed as investors began taking more risk in their portfolios.
However, we are by no means out of the woods just yet. South African consumer confidence is at its lowest point since
1993, and unemployment was at 35% by the end of June. Many companies were forced to shut their doors permanently
as a result of the nationwide lockdown. The construction industry slumped by over 76%. Household spending fell by
almost 50% and spending on restaurants and hotels dropped by a massive 99.9%. All of this was followed by ongoing
power cuts as Eskom has been unable to meet demand.
The International
South Africa’s GDP is Monetary Fund agreed
predicted to contract by The FTSE/JSE Top 40 to lend South Africa $4.3
7.8% by the end of the was down -3.30% in billion, the largest loan
year, and tax revenue September. any African country has
has declined by R312.8 received since the start of
billion. the coronavirus crisis.
All we can hope for now is a fast recovery and no further lockdown measures to restrict operations. As always, two
things remain true in all situations – no one can successfully predict what the future holds, and investing is a long-
term endeavour. You can be assured that your Fund is managed by competent and experienced professionals, who will
act in your best interests at all times.
Managing the Fund is a significant responsibility, as resolving Fund issues can often be complicated and involve a great
deal of time and effort, and these affect the livelihood of all the Fund’s members and their loved ones. The Board of
Trustees is invaluable in this regard, and I would like to convey my appreciation to these individuals for their hard work
and commitment.
Regards
Jeffrey Mokadi
Principal Officer
3
Chair’s Message
Simple stress-busting basics
for unprecedented times
Dear Member/Pensioner
During Covid-19, it’s not just the economy that is worrying us. We are all experiencing the psychosocial effects of a global
pandemic, for which no one could have been prepared. During times like this, it can be hard to keep calm and carry on.
Practising mindfulness can help you cope.
Maintain a daily routine. That means getting up and getting dressed at a regular time each day.
Restrict media and social media coverage to prevent it from becoming too overwhelming.
Only obtain info from credible news sources.
Acknowledge your feelings and focus on things you can control.
Find things to keep you busy (whether it’s constructive or creative) to help lift your mood.
Reading, getting sunshine, and exercise will cheer you more than watching TV.
Stay connected with your loved ones via technology.
Practice mindfulness and gratitude.
Find things to look forward to or to plan for.
Be honest with others about how you are feeling. It’s normal to have very volatile emotional responses during
stressful times.
Whether you are helping a friend, or need help yourself, you can always call the Cipla SADAG 24-hour mental health
helpline on 0800 456 789 or via WhatsApp on 076 882 2775 between 9am and 5pm.
As we approach the end of the year, as Chairperson of the Unisarf Board of Trustees, on behalf of the Board I would like to
wish you a blessed and joyous festive season with your loved ones. We further hope that the new year brings you happy
experiences, pleasant surprises and most of all, good health. Let’s look forward to 2021 and hope that we have turned
the corner and the worst is behind us. Let’s all stay safe so that we can reunite in January.
Best wishes
Reshma Mathura
Chairperson
4
Industry Updates
What’s new in the retirement world?
Withdrawing retirement fund savings upon emigration
Currently, it is possible to withdraw from a preservation fund or retirement annuity fund due to a member
emigrating. A new test is now inserted, which will make provision for the payment of lump sum benefits when
a member ceases to be a South African tax resident and such member has remained non-tax resident for at least
three consecutive years or longer. The proposed amendments will come into operation on 1 March 2021.
Reviewing the tax treatment of pensions
Changes were introduced in the 2019 tax law amendments to ensure that in a case where a pensioner receives
two or more sources of employment income, provided that one of those sources is a retirement fund or an insurer
paying a pension, the tax rebates are not taken into account more than once when employees’ tax in respect a
specific year of assessment is determined. It is proposed that the effective date of 1 March 2021 be extended until
1 March 2022.
Prescribed asset requirements
The Pension Funds Act (Act No. 24 of 1956) deals with retirement funds in South Africa and Section 19 and
Regulation 28 of the Act deals specifically with retirement fund investments.
The preamble to Regulation 28 states that:
“[A] fund has a fiduciary duty to act in the best interest of its members whose benefits depend on the responsible
management of fund assets... This duty supports the adoption of a responsible investment approach to deploying
capital into markets that will earn adequate risk adjusted returns suitable for the fund’s specific member profile,
liquidity needs and liabilities.”
5
It is therefore the duty of the Board of Trustees to ensure that members’ assets are invested and managed in the best
interest of the members, so that they can retire comfortably.
Retirement funds do already invest in state-owned enterprises, as long as
the investments are in line with their portfolios’ return expectations and
their members’ risk profiles. In other words, they can choose to invest in
these state institutions only if they are sustainable, suitable, and in the
members’ best interests.
Provident funds
During the 2020 Budget Speech, the Minister of Finance indicated that the annuitisation of provident funds, which
had been repeatedly postponed, would be implemented effective 1 March 2021. When this comes into effect, it
will mean that members of provident funds younger than 55 will be restricted to taking a maximum of one third
of their retirement benefit in cash, using the balance to purchase a pension. Member’s vested benefits in the Fund
will be protected and exempted from the annuitisation requirements at retirement. This means that the value of
the benefit as at 1 March 2021 may still be taken as a cash lump sum, no matter what your age. If you are over the
age of 55 as at 1 March 2021, you may still take your full benefit as a cash lump sum when you retire.
Protection of Personal Information Act, 4 of 2013 (POPIA)
The Protection of Personal Information Act 4 of 2013 (POPIA) came into force on 1 July 2020. Employers need to
be fully compliant with POPIA by 30 June 2021. It places several obligations on employers in terms of managing
employees’ personal information. It also gives certain rights to privacy to employees. The Protection of Personal
Information Act aims to promote the right to privacy in the Constitution, while at the same time protecting the flow
of information and advancing the right of access to and protection of information. With the advent of the internet,
personal information has become increasingly accessible. POPIA introduces measures whereby processing of your
personal information (as a member/employee) by the Fund/Employer and its agents is done fairly, responsibly and
conducted in a secure manner.
6
Member Matters
Divorce Orders and your Fund benefits
Members’ retirement benefits form part of their overall assets and a portion is often paid to the ex-spouse in the case of
divorce. The portion paid to your ex-spouse will depend on the percentage specified in your Divorce Order.
The Fund can only pay the portion of the member’s pension interest allocated to the ex-spouse in a divorce if the
Divorce Order complies with the following requirements:
• The Fund must be clearly named.
• The Divorce Order must clearly state the percentage or rand value of the pension interest (i.e. the resignation
benefit as at the date of the divorce) to be paid to the ex-spouse.
• The Fund must be ordered to pay over the awarded portion of pension interest to the ex-spouse and endorse its
records accordingly.
EXAMPLE OF WORDING THAT MEETS THE REQUIREMENTS OF SECTION 7(8) OF THE DIVORCE ACT
Defendant (Note: Change all references to Defendant to ‘Plaintiff’ if applicable and vice versa) is a member of the
Post Office Retirement Fund (Note: Indicate name of each Fund against which the order must apply).
1. The parties agreed that the said Fund be ordered to pay xx percent of the pension interest of the
Defendant in the Fund to the Plaintiff or to a retirement fund elected by the Plaintiff.
2. A certified copy of the divorce order must be submitted to the said Fund or its administrator so that the
Fund’s records can be endorsed accordingly.
The wording of the Divorce Order must be legally correct and in line with the
Divorce Act in order for a Fund to make a payment.
Please Note: It is your responsibility to notify the Fund of a Divorce Order that includes the allocation of
! part of your Member’s Share to your ex-spouse. The payment will be processed once you have provided
the Fund with your Divorce Order. This should happen as soon as possible after your date of divorce.
Fund Membership
Number of members as at 1 January 2019: 5 324
Additions: 313
Less Withdrawals: (66)
Less Deaths: (15)
Less Retirements
(including 11 deferred retirements): (114)
Number of members as at 31 December 2019: 5 442
7
AN UPDATE TO
THE FUND’S RULES
The Unisarf rules were updated and registered on 18 November 2020, to ensure their completeness and
correctness, as follows:
To ensure that the rules are correctly numbered
To improve and clarify various phrases and definitions, i.e. Actuary, Ancillary Benefits,
Beneficiary, Pensioner, Qualifying Child, Living Annuitant
To ensure that active members cannot have separate member credits if they were
previously categorised as deferred pensioners
To clarify that only active members are entitled to insured ancillary benefits
To clarify that the employer’s balance of cost obligation includes the dependants of a
deceased in-service member
To clarify that in-service members who do not make a choice when they retire will
automatically become deferred pensioners
To clarify that qualifying spouses cannot receive annuities in the place of members
To clarify that the balance of a guaranteed period pension is payable to beneficiaries,
rather than dependants, if there is no qualifying spouse or child
To clarify which part of a death benefit must be reinsured
To allow for a death benefit to be paid to a beneficiary fund
To allow for investment returns to be added to late payment of benefits
To clarify deductions that are made when employment is terminated
To amend the provisions for alternate board members
To clarify the provisions for the election of board members
To allow deferred pensioners and living annuitants to participate in board elections
To add further governance provisions
To allow for transfers from the living annuity account to the pensioner account
To amend certain liquidation provisions
Visit www.unisarf.co.za for the full rules and amendments as well as much more:
Latest Financial Statements, Rules and Amendments
http://www.unisarf.co.za/unisarf/policies-and-rules
Visit website
Latest Monthly Investment Returns Visit website
http://www.unisarf.co.za/unisarf/fund-investments
8
Management
of the Fund
The Fund is managed by a Board. Half of the Board’s members have been elected by the Fund's members and pensioners,
and half have been appointed by the principal employer, Unisa. (The Pension Funds Act 24 of 1956 as amended stipulates
that at least 50% of the Board members must be member elected.)
In addition, there are also an equal number of alternate Trustees, who will take on the roles of a Trustee should the need
arise, e.g. when a full Trustee is absent from a board meeting and the chair acknowledges the alternate as standing in
for such a Trustee. Alternate Trustees attend all meetings and participate actively in discussions, but their voting right
depends on whether the principal Trustee attends the Board meeting or not. The Fund operates on this basis to ensure
continuity within the Board.
The Fund's Board of Trustees, assisted by professional advisors, meets regularly to discuss investments, benefits and
administration matters. The Fund's investments are managed by a variety of investment managers, selected by the
Trustees based on the recommendation of the Fund's investment advisor.
The Board of Trustees and the service providers to the Fund are currently as follows:
Name Position Name Position
Jeffrey Mokadi Principal Officer Vacancy Deputy Principal Officer
Chairperson and Employer Vice-Chairperson and Employee
Reshma Mathura Louis Crafford
Trustee Trustee
Olaotse Kole Employer Trustee George Mogaladi Employee Trustee
Annastacia Mthembu Employer Trustee Crystal Adams Employee Trustee
Vishvanathan
Nosisa Mokoka Employer Trustee Employee Trustee
Padayachee
Marshal Hwehwe Employer Trustee
PJN Van Staden Alternate Employer Trustee Virgil Fick Alternate Employee Trustee
Lindiwe Ngcobo Alternate Employer Trustee Teboho Majara Alternate Employee Trustee
Muthundine Sigwadi Alternate Employer Trustee Refilwe Makgae Alternate Employee Trustee
Mxolisi Mkhize Alternate Employee Trustee
Johan Muller Pensioner Principal Trustee Jannie Rossouw Alternate Pensioner Trustee
Service Providers:
Name of Company Service Representative
Alexander Forbes Benefit Administrator Adela Walsh
Old Mutual Risk Insurer
MortLaw Legal Advisor Jonathan Mort
Nedbank Limited Custodian
PriceWaterhouseCoopers Inc. Auditors Johannes Grove
Sanlam Life Insurance Ltd Risk Insurer
Willis Towers Watson Valuator Greg Hatzkilson
9
Work with what’s in
your wallet this December
We don’t need to ask – we know that if there’s anything you need right now, it’s a good break. To say the past year has
been turbulent is to look for silver linings on a cloudy day. To live in search of good news during a pandemic can be like
looking for an open airport during the peak of COVID. This round of Surviving Planet Earth has been extremely bumpy,
especially financially.
As the country moved down to Level 2 of Lockdown, various areas of the tourism sector opened up, allowing South
Africans to enjoy game drives, bush breaks and¬¬ an increased sense of freedom. Before you book your Airbnb, though,
remember that the pandemic is not over. It’s of utmost importance to continue to protect your and your family’s health
by practicing social distancing, wearing a mask, and preparing for cashless transactions.
Here’s how to plan your December holidays without accidentally digging into 2021’s budget
For those old enough to remember, a common childhood response to “Where are you
spending the holidays?” was “I’m going to Romania (remain here).” While you may considering
staying in your home the worst possible way to spend December, do remember that the
best way to both save money and remain safe from Covid-19 is to stay home and make a
party of it. Hang some celebratory ornaments, redecorate your home to emulate your dream
destination, and invite your favourite people over.
Use your rewards cards as much as you can. Most banks and many service providers have
rewards programmes which include travel-related benefits. Also note that the small discounts
you have accumulated on various rewards cards can come in very handy. These can be
e-Bucks, UCount Rewards, Discovery Vitality Rewards, Clicks points – use them to save some
money where you can.
Ensure your medical cover is sorted, and travel with your medical aid card. It can be a
phenomenal financial cost to need hospitalisation should you fall ill while on holiday. It’s
also a good idea to travel with one person who has even an elementary level of what to do if
anybody develops symptoms or needs to be quarantined.
Spend some time looking for the best possible deals and packages. Some tourism
establishments are lowering their prices in order to recover losses made during the lockdown
period, but many are also charging exorbitant rates to recover from the same business losses.
So, clear an hour out of your schedule to do some thorough research.
Allow us to put the same record back on: if possible, defer your travel plans for 2021. Large
booking sites like Go2Africa are reporting vacation deferment rates to 2021 at a rate of 90%.
Many people across the globe have made the decision to stay home this December, and
enjoy the added benefit of spending less than usual. Remember that the holiday season is
the period during which most South Africans are likely to overspend, take out credit and dig
into their savings.
We wish you a wonderful Festive Season. Remember to stay safe – the pandemic is not over, but
we’ll get to the end of this flight, turbulence and all.
10BEFORE YOU LEAVE FOR
YOUR DECEMBER BREAK…
When last did your review your beneficiaries?
Thinking about the unpredictability of life doesn’t sound like the best way to prepare for vacation, but it must be done.
The reality of holiday season is that many of us are travelling and feeling more festive than usual… which sometimes
can lead to tragedy. Give yourself absolute peace of mind to enjoy your vacation knowing that your family is covered.
In terms of the Pension Fund Act, a member’s dependants must be taken into account by the Trustees when
they decide in what share to distribute a death benefit.
Your Nomination of Beneficiary Form is used to guide the Board when allocating the death benefit. They have the
right to distribute your death benefit to dependants and/or nominees in a manner that they believe to be fair and
just to all parties.
Unless your nominations are up to date, this payment could be significantly delayed, resulting in financial and
emotional suffering for those you hold most dear.
Did you know?
! Every year, pension boards and legislative bodies sit with millions of rands in unclaimed benefits.
Some of these cases could have been prevented if Fund members had updated their beneficiary
nomination forms. That’s why it’s a good idea to make a habit of regularly revisiting your plans and
deciding whether they are still in line with what you want.
Want to know more about
revising your Beneficiary Nomination Form?
You can find out more, send an email query to the
Principal Officer, and/ or update your form by visiting the
Fund’s website: http://www.unisarf.co.za/unisarf/forms
Submit your completed
form to the Employer
11www.unisarf.co.za
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