As negotiated with NEHAWU, permanent support staff on grades 1-5 are required to join the NBC Provident Fund. At the time of leaving the University, the fund pays out the current value of the fund. In the event of the death of an active member of staff, the fund would pay out 3 times the current annual salary of the deceased to the nominated beneficiaries.
Contributions total 22.5% of pensionable salary with the staff member contributing 7.5% of their pensionable salary, while the University contributes the remaining 15%.
Staff promoted from this category of staff to a grade 6 or higher post cannot switch to a pension fund as the benefits do not transfer without prejudice to the staff member concerned. However, the Provident Fund will be transferred to the Rhodes University Provident Fund. The member can then elect to become a non-contributory member.
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.
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.
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:
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.
You are able to keep an eye on the value of your Rhodes University Provident 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 area.
Please do not send forms directly to Alexander Forbes. These should be sent to the HR Division.
Last Modified: Wed, 14 Jan 2015 08:41:31 SAST