PROTEKTOR PRESERVATION FUND

Transcription

1 PROTEKTOR PRESERVATION FUND

2 ANNA SISHULI EMPLOYEE I have changed jobs three times in my career. Each time I changed employment, I invested my accumulated retirement fund savings in Protektor and paid no tax. My retirement savings remain on track because I did not have to start saving over again each time I changed jobs. SAFE HAVEN FOR YOUR RETIREMENT SAVINGS WHY IT WORKS FOR ME: Protektor offers various investment options I had the option to select from two smoothed bonus portfolios, as well as a select number of Old Mutual Unit Trust Portfolios. No administration fee was levied on transfer because my savings were transferred from a retirement fund administered by Old Mutual. THE PERFECT PARTNER TO ANY OF THE SUPERFUND SOLUTIONS There are retirement funds available under Protektor a registered pension fund and a registered provident fund. Various investment portfolios is offered to meet specific investors needs. MORE ABOUT PROTEKTOR Protektor is a cost-effective, easy to use preservation fund designed to help employees, when changing employment to preserve their retirement savings and to ensure that their retirement planning remains on track. Pension fund for employees transferring from an approved pension fund. Provident fund for employees transferring from an approved provident fund. Employees can select from two investment options: Protektor Guaranteed Option or Protektor Investment Choice Option. 2

3 HOW IT WORKS When an employee changes jobs, the employee chooses to preserve their accumulated retirement fund savings in Protektor. The Fund in which the employee participated prior to leaving employment, transfers the employee accumulated retirement savings to Protektor. ACCUMULATED CREDIT The accumulated credit is used to provide the member with benefits on: Retirement (ill-health, early, normal and late retirement). Withdrawal subject to tax regulations, the member has the option to make a single withdrawal, prior to retirement, from their accumulated credit. Death. Disability. Once invested in Protektor your accumulated credit is equal to: The amounts transferred from other retirement funds on behalf of the employee, plus Investment returns, less Expenses. INVESTMENT OPTIONS AND PORTFOLIOS An employee who elects to transfer their accumulated retirement fund savings may choose either the Guaranteed Option or the Investment Choice Option. PROTEKTOR INVESTMENT CHOICE OPTIONS This option offers the member access to a range of Old Mutual investment options including market-linked and smoothed bonus portfolios. The member may invest in up to four portfolios at any one time. SMOOTHED BONUS PORTFOLIOS ABSOLUTE STABLE GROWTH PORTFOLIO This portfolio explicitly targets returns in excess of inflation over rolling 3-year periods, while significantly reducing the ups and downs associated with market-linked investments. The current underlying portfolio, as selected by the Old Mutual SuperFund Trustees, is the Old Mutual Absolute Stable Growth Portfolio that provides investors with an 80% capital guarantee. 3

4 The returns are passed on to the member s accumulated credit via monthly bonuses which are declared in advance. These bonuses are net of capital charges of 0.70% per annum and investment management fees of 0.65% per annum (i.e. all fees have been deducted). OLD MUTUAL COREGROWTH 100 This Portfolio explicitly targets returns in excess of inflation over the medium to long term, while significantly reducing the ups and downs associated with market-linked investments. It also provides investors with a 100% capital guarantee. The returns are passed on to member s accumulated credits via monthly bonuses which are declared in advance. These bonuses are net of capital charges of 1.80% per annum and investment management fees of 0.35% per annum (i.e. all fees have been deducted). MARKET-LINKED PORTFOLIOS OLD MUTUAL UNIT TRUST BALANCED FUND This fund aims to achieve long term inflation-beating growth. The fund has a growth asset base and will invest more heavily in shares. The portfolio manager actively allocates to other asset classes to take advantage of changing market conditions and to manage the fund s volatility. Investment management fee is 1.48% per annum. OLD MUTUAL UNIT TRUST BOND FUND The fund aims to offer a combination of capital growth and high income yields. Capital growth is primarily achieved by actively taking advantage of interest rate cycles. Investment management fee is 0.86% per annum. There is no performance-based investment management fee. 4

5 OLD MUTUAL UNIT TRUST MONEY MARKET FUND The fund aims to deliver a regular income and to outperform bank deposits over time, while preserving capital. Investment management fee is 0.57% per annum. There is no performance-based investment management fee. Switching between funds is allowed in order to ensure that the member s preservation portfolio matches their specific investment needs and risk profile. Switches out of CoreGrowth and Absolute Stable Growth portfolios are limited to twice a year, on 30 September and 31 March. A minimum of 3 months notice for these switches is required, i.e. a completed switch form must reach Old Mutual by 30 June and 31 December. IMPORTANT CONSIDERATIONS You may transfer from Protektor to another preservation or approved retirement fund but transfers to a retirement annuity are not permitted. You cannot add or make personal ad hoc contributions to your existing Protektor Preservation Pension or Provident Fund. Should you wish to transfer the proceeds from another retirement fund at a later stage you will need to make a fresh application. Prior to transerring into Protektor you may take a portion of your funds in cash. BENEFIT PAYABLE ON RETIREMENT On retirement, the member will be paid a benefit equal to their accumulated credit. A member can retire at any time after age 55 years. The retirement benefit can be paid as follows: Pension fund members of the pension fund must purchase a pension annuity (that makes regular monthly payments to the member) with a minimum of two-thirds of the member s accumulated credit. The remaining portion of the accumulated credit will be paid as a cash lump sum. Provident fund members of the provident fund may take their accumulated credit in cash or purchase a pension annuity with any portion thereof. The balance will be paid as a cash lump sum. The retirement benefits are subject to taxation. To help retiring employees with a hassle free transition into retirement, they have the option of electing the Old Mutual Fund Select Annuity, when deciding on their full or partial monthly pension purchase. Old Mutual Fund Select Annuity is a generic best fit annuity for retiring members, and is endorsed by the Trustees of the Old Mutual SuperFund. The annuity option available has standard features and is based on a favourable annuity rate basis negotiated by the Trustees. 5

6 BENEFIT PAYABLE ON WITHDRAWAL Only once, a member can elect, to withdraw all or a portion of the benefit. Full withdrawal The member is entitled to a withdrawal benefit equal to their accumulated credit at that time, subject to taxation. This can be paid as a cash lump sum, subject to taxation. The member can instead choose to transfer their benefit tax-free to another approved preservation fund. Partial withdrawal The member can elect to receive a portion (specific percentage or flat Rand amount) of their accumulated credit at that time. This will be paid as a cash lump sum, subject to taxation. This partial withdrawal option is only available once. The remaining portion of the accumulated credit cannot be taken as a withdrawal benefit at a later date. It can only be applied in terms of the retirement, death or disability benefits. BENEFIT PAYABLE ON DISABILITY OR ILL-HEALTH Retirement before the age of 55 years is only permitted in the case of ill-health or disablement. The member will need to provide satisfactory medical evidence of their inability to work. If the Trustees approve the payment of an ill-health retirement benefit, the member is entitled to their accumulated credit at that time. The benefit will be paid in accordance with the provisions of the retirement benefit set out earlier in this document. BENEFIT PAYABLE ON DEATH If a member passes away while still invested in Protektor, the Fund will pay their dependants, in proportions that the Trustees decide, a benefit equal to the member s accumulated credit at that time. 6

7 Protektor provides a tax-efficient, safe haven for your retirement fund savings with seamless transfer from other approved retirement funds. 7

8 omms L8360 GET PROTEKTOR WHEN YOU CHANGE EMPLOYMENT. Contact your Old Mutual Personal Financial Adviser, your Intermediary, or an Old Mutual Corporate Consultant in your area for more information or advice. OLD MUTUAL CORPORATE INTERMEDIARY CONSULTANTS Johannesburg / /1990 OLD MUTUAL CORPORATE DIRECT CLIENT CONSULTANTS / /1990 Pretoria / /0001 Western Cape / / KwaZulu-Natal / /0705 Eastern Cape / /6304 Bloemfontein Visit our website at Regulatory information: Old Mutual Corporate is a division of Old Mutual Life Assurance Company (South Africa) Limited, Jan Smuts Drive, Pinelands, 7405, South Africa. Registration no: 1999/004643/06. A licensed financial services provider authorized in terms of the Financial Advisery and Intermediary Services Act, 2002, to furnish advice and render intermediary services with regard to long-term insurance and pension fund benefits, as well as providing intermediary services as a discretionary investment manager. Please note that this license does not cover the marketing of this product by persons other than Old Mutual and its staff. Every effort has been made to ensure that this document and the products referred to, meet the statutory and regulatory requirements, pertaining to the manner and format in which information regarding financial products is presented. However, should you become aware of any breach of such statutory and regulatory requirements, please address the matter in writing to: The Compliance Officer, Old Mutual Corporate, PO Box 728, Cape Town, 8000, South Africa.