Note that the information below is applicable only to academic staff and support staff on grades 6 and above.
Alexander Forbes administers the Rhodes University Pension and Provident Funds. All permanent staff of the university and those on contracts longer than 12 months are required to join the fund. At the time of joining the University, staff are required to select the fund they wish to join. In terms of the rules governing such funds, it is not possible to transfer from one option to the other once the initial selection has been made. Careful thought needs to go into the decision as to which fund to choose. It is advisable for prospective staff to speak to an accredited financial consultant about the options that best suit their circumstances. Alternatively, an Alexander Forbes consultant may also be contacted on 041- 3928342.
Rhodes University Pension Fund. The fund is based on a defined benefit calculation at time of withdrawal. This defined benefit is based on your salary for the last 12 months and your years of contribution. This means that you will always get a guaranteed pension.
Rhodes University Provident Fund. This fund is based on a defined contribution i.e. what have you put into the fund during the time of your employment and the investment earnings on this contribution. This means that you can get more or less than those in the pension fund depending on the investment earnings. There are two options:
- Non-contributory provident fund: In this case, the basic salary of the staff member is lower as the University contributes the full 22.5% to the fund;
- Contributory provident fund: In this case, the staff member contributes 7.5% and the University contribute 15% of pensionable salary.
At the time of joining the fund, members need to choose between the contributory option and non-contributory options, which have a bearing on the treatment of tax on the fund, the basic salary and the take-home pay. In addition, staff may choose the investment profile that suits their needs, or may opt to invest in the Life-stage model, that allows Alexander Forbes to use their expertise to manage the investment in accordance with the life-stage of the member. If you have chosen to invest your fund other than according to the Life-stage model, you may switch between different investment funds at no cost.
Pension & Provident Funds
Rhodes University Provident Fund
You are able to keep an eye on the value of your fund, by registering online with Alexander Forbes. You can do so by clicking on the link that appears below the document that will advise you as to how to register:
(Please click link above for Online registration)
For queries or with assistance in completing any documentation, please contact the HR Generalist for your Faculty.
Please do not send forms directly to Alexander Forbes. These should be sent to the HR Division.
Last Modified: Wed, 14 Jan 2015 08:53:11 SAST