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You choose a percentage of between 12% and 40% of your CoE. If you do not make a choice when you join the UCTRF, your contribution rate will be defaulted to 18% of CoE. These contributions are Employer contributions, even though they come out of your CoE.

Part of this contribution is used to pay for your death, disability and family funeral cover, administration fee and other expenses (such as audit, actuarial, secretarial, FSCA levies, bank charges, costs of running the UCTRF Office, etc.). The rest is invested in your Accumulated Retirement Savings. These costs change in July each year.

The Risk Cover costs, administration fee and other expenses change annually and are set out below:

As can be seen from the above, the amount of your total contribution that is allocated to your Accumulated Retirement Savings will depend on the Risk Cover you elected. (Note that the Premiums and fees that are deducted from your contribution are a percentage of your CoE.  This means that the lower your contribution percentage, the bigger these fees and costs are when expressed as a percentage of your contribution.) To understand the amount that is allocated from your contributions towards your own Accumulated Retirement Savings please use the Contribution Calculator.

You may also select up to an additional 4x CoE Separate lump sum death cover. The cost of any additional Separate lump sum death cover will be paid by you in addition to the percentage contribution you select and costs 0.268% for each 1 x annual CoE. (The Premium is reviewed annually effective 1 July.)

When can I change my contribution rate?

You can change your contribution rate effective 1 March each year.  You can also change your contribution rate whenever your CoE changes.  Please note that the contribution is deducted from your CoE, so a change to your contribution rate will affect your take-home pay.

If you want to increase your contribution rate contact your HRBP, who will assist you with completing the relevant forms.  Details of HRBPs can be found on the UCT Human Resources website at http://www.hr.uct.ac.za/hr/contacts/.

Can I make lump sum additional voluntary contributions?

Yes. If you receive a performance bonus (i.e. discretionary or exceeds award) you may transfer up to 55% of this bonus to the UCTRF. 

In addition, when you leave the service of your Employer, you can transfer up to 55% of your leave pay to the UCTRF. If you select this option, you must let your Department have your final leave dates at least 2 months prior to your last day of work so that the leave audit reports can be requested.  In addition you must ensure that your HR153 is submitted by the 3rd of the month in which you leave UCT (for example: if you leave UCT on 31 December your form must be submitted by 3 December).

If you have been contributing below the tax-free maximum, all or part of this additional, voluntary contribution will be tax-free. Please click here for information on taxation of contributions.

Can I transfer money from a previous fund into the UCTRF? 

Yes. If you belonged to a Pension or Provident Fund with your previous Employer, or if you have a Preservation Fund you may transfer you money in that fund to the UCTRF.  You can’t transfer from a Retirement Annuity to the UCTRF.

The amount you transfer will be credited in full to your Accumulated Retirement Savings.  The transfer will be tax-free.

• Your Retirement Pot in the previous fund will be allocated to your Retirement Pot in the UCTRF.
• Your Vested Share in your in your Vested Pot in your previous fund will be allocated to your Vested Share in your Vested Pot in the UCTRF and your Non-Vested Share in your Vested Pot in your previous fund will be allocated to your Non-Vested Share in your Vested Pot in the UCTRF. However, you may elect to transfer your Vested Pot in your previous fund to your Retirement Pot in the UCTRF.
• Your Savings Pot in your previous fund will be transferred to your Savings Pot in the UCTRF. However, you may elect to transfer your Savings Pot in your previous fund to your Retirement Pot in the UCTRF.

If you transfer your Vested Pot or Savings Pot from your previous fund to your Retirement Pot in the UCTRF, you will NOT have lump sum access to that money once transferred to the Retirement Pot and you cannot transfer back from the Retirement Pot to the Savings Pot or Vested Pot. This substantially reduces access to your money in an emergency and a lump sum portion at retirement.

Are my contributions taxed?

Please click here for information on taxation of contributions.