Frequently Asked Questions

Membership of the UCTRF

1. Do I have to join the UCTRF? - Click here for more

Contributions

 

2. Can I contribute more/less towards my retirement funding? - Click here for more

3. How much do I contribute towards the UCTRF? - Click here for more

Investments 

4. FAQs regarding the closure of the Smoothed Bonus Portfolio on 1 May 2023 - Click here for more 

5. Where is my benefit invested? - Click here for more 


The UCTRF allows member investment choice, which means that you choose where to invest your Accumulated Retirement Savings

If you do not make any choice when you join the UCTRF, then your Accumulated Retirement Savings will be invested in accordance with the Life Stage Model.

You may elect a different option at any time. Your investment portfolio is indicated on your benefit statement which you can view on the Retirement Fund Web.

Retirement Fund Web - Click Here to Visit

6. Where should I invest my benefit? - Click here for more

7. How often can I change my investment choice?

You can switch your investment portfolio/s at any time, but you should be aware that switching frequently may work against you. It is better to select the option that is right for you and your long-term needs, and only switch if and when your needs change. In addition, if you switch more than once in the period between 1 July and 30 June each year, you will pay an administration fee for each additional switch. Click here for more information on how to make an investment choice.  The most common investment mistakes (one of which is trying to time the market - switching your investments when markets drop) can be viewed here.

8. Which Portfolio do you think I should invest in? - Click here for more

9. What is the Life Stage Model and why do we have such a model? - Click here for more

Withdrawal Benefits

10. How much money will I receive when I resign? - Click here for more

11. On how much will I be taxed at resignation? - Click here for more

12. How soon after resignation will I receive my benefit?

You will receive your monies from the UCTRF within 15 business days of receipt of all necessary information, provided that all contributions have been received and are up to date and receipted and that UCTRF's Administrator receives a tax directive from SARS within 2 business days of making such an application. 
This service level shall be extended for the same period that these requirements are not met.

13. Will I receive interest on my benefit while my payment is being processed?

Yes. Your money is invested in a money market account until the tax directive is applied for and from this date bank interest is added until date of payment to you.

Retirement Benefits

14. How much money will I receive when I retire? 

You will receive your Accumulated Retirement Savings in the UCTRF. If you want an indication of how much your benefit will be worth when you retire, please make use of the Retirement Calculator.

Retirement Calculator - Click here to Try out

15. Monthly pension options

What is a Life Annuity?

It is a monthly pension, which is guaranteed for your life.  The Insurer calculates the pension you will receive every month, and this depends on the amount of your Accumulated Retirement Savings and the type of pension you choose.  The following factors play a role:

  • Whether you have elected to take a lump sum, or not;
  • Whether you have elected to include a guaranteed period, or not;
    • This means the pension will continue to pay out (to whomever you elect i.e. your spouse and/or your dependants) until the terms ends, even if you die during this period.  For e.g. if you choose a 5 year guaranteed period, your pension is guaranteed to pay out from your retirement date until the end of the 5 years, even if you die in the first year.
  • Whether you have elected that a spouse’s or dependant’s pension must be paid after your death;
    • This means the pension will continue to pay out (for life) to your spouse or dependant after your death, even after the guaranteed period has expired.  However, should your spouse also die after the guaranteed period has expired and you did not choose to include a dependant pension, the monthly pension will no longer pay out.
  • The Insurer guarantees the pension, so it provides you with security – the only risk is if the Insurer becomes insolvent.

For more information regarding life annuities and the options available please refer to the UCTRF Retirement Options Booklet.

Retirement Options Booklet - Click here to Read

What is a Living Annuity?

When you leave your Accumulated Retirement Savings with the UCTRF (or an Insurer providing a similar product), it is then treated as a savings account and will grow with investment returns. 

SARS stipulates that you must take between 2.5% and 17.5% of the total value of your account annually as a pension, but that the annuity must at all times produce a life annuity.  This may mean that the maximum you may take is likely to be lower than the normal range of 17.5%.  You can adjust your pension annually within these constraints.

The pension can be paid to you monthly, quarterly, biannually or annually (if you take a monthly pension, the monthly amount is fixed for the coming year based on the amount invested at the beginning of the year and your chosen percentage).

For more information regarding living annuities and the options available please refer to the UCTRF Retirement Options Booklet.

Retirement Options Booklet - Click here to Read

16. On retirement, how much can I take in cash?

Your Accumulated Retirement Savings are divided between a Vested Share and a Non-Vested Share

If you were 55 years or older on 1 March 2021 you may take up to 100%  of your Accumulated Retirement Savings in cash when you retire.

If you were younger than 55 years on 1 March 2021, you may take 100%  of your Vested Share in cash when you retire.  If your Non-Vested Share is R247 500 or less you may also take 100% of the Non-Vested Share in cash.  However, if your Non-Vested Share is R247 500 or more  you may only take one third of this in cash and you must use the other two thirds to buy a pension.


17. How much will I be taxed at retirement? - Click here for more

No tax is payable on your Retirement Benefit if you choose to use your full benefit to purchase your pension. There will be tax payable on the pension payment that you receive, based on individual income tax rates, this can be calculated by your Financial Advisor at the time of your retirement. For further information regarding appointing a financial advisor and preferential rates offered to UCTRF members click here.

18. How soon after retirement will I receive my benefit?

You will receive the cash portion of your monies from the UCTRF within 15 business days of receipt of all necessary information, provided that all contributions have been received and are up to date and receipted and that UCTRF's Administrator receives a tax directive from SARS within 2 business days of making such an application. However, any information that is required and/or requested and not submitted, or is outstanding, will delay the process. 

19. Will I receive interest on my benefit while my payment is being processed?

Your money is invested in a money market account until the tax directive is applied for and from this date bank interest is added until date of payment to you. 

20. Can I decide where to purchase my Living Annuity?

Yes, please refer to the UCTRF Retirement Options Booklet for more information on the options available to you.

Retirement Options Booklet - Click here to Read 

21. Can I change Insurers at a later date if I took the Living Annuity with the UCTRF in the first instance?

Yes, the UCTRF's rules allow that a person in receipt of a Living Annuity may instruct the UCTRF to apply the Living Annuity balance to purchase a Life Annuity or Living Annuity from an Insurer. 

Death Benefits

22. What are my death benefits? - Click here for more

23. Where can I find the Nomination of Beneficiaries Form? - Click here for the forms page

24. When/how often should I update my Nomination of Beneficiaries Form? 

You should review your Nomination of Beneficiaries Form at least annually or in the event of a life such as birth, death or separation/divorce.

25. Where can I send my forms once completed?

Please return your forms to the person specified on the form you have completed.


Our Contact Details


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Enquiries

021 650 2934

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Fund website: www.uctrf.co.za

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