Retirement

Normal Retirement

Normal retirement means the age as selected by your school. The School determines the normal retirement age (as stated in the school’s special rules).

What benefit will I receive?

Your annual pension is equal to 2% of final average salary (FAS) for every year of pensionable service.

Example: If you have 20 years service the calculation will be 2% x 20 x FAS

FAS = either your salary over the last 1 or 2 years depending on what the School elected.

Payment Options

You may elect to take up to 1/3rd of the total value of your pension as a cash lump sum.

If you take a cash lump sum your monthly pension will reduce.

A pension can either be purchased from the Scheme or through a Registered Insurer of your choice.

From 1 March 2019, in terms of the law, the Fund also offers an annuity strategy. Members will be given retirement benefits counselling at least 3 months prior to their normal retirement age.

Deferred membership

The Scheme allows you to defer your retirement, i.e. leave the total value of your pension and continue membership of the Scheme after reaching normal retirement age and leaving your employer. You will not be allowed to make further contributions to the Scheme upon reaching your retirement age. The death, disability and funeral benefits (if applicable) will cease. Your money will continue to be invested in the portfolio you have elected previously, but you may elect to change your portfolio.

Please remember

Important to note that in terms of new legislation Deferred Retirees at normal retirement age have the option to also transfer to a Retirement Annuity or Preservation Fund of their choice.

Obtain financial advice

It is advisable that you obtain financial advice from an accredited financial advisor. To find a financial advisor you can go to the Financial Planning Institute at www.fpi.co.za

Or call Old Mutual’s toll free number 0860 388 873

Early Retirement

With the agreement of the employer you may retire early from 10 years prior to your normal retirement age.

What benefit will I receive?

You will receive your pension as above, but it will be reduced by 0.25% per completed month in respect of the period between early and normal retirement.

Should your employer make additional retirement contributions as determined by the Actuary then a lower or no reduction in pension will apply.

Late Retirement

With consent from the employer you may retire after normal retirement age.

What benefit will I receive?

You will receive your pension as above, but increased by 0.4% per completed month in respect of the period between normal and late retirement.