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Contributions 

Employee contributions to a Provident Fund are not tax deductible. UCT makes the full contribution to the Fund.
 
This contribution rate is currently 22,5% of your deemed pensionable amount (DPA - as determined by you) for permanent employees. 
16% is directed towards retirement funding and 6.5% towards administration costs, Fund costs as well as death and disability benefit insurance costs. 

The employer contribution in respect of contract employees who are eligible to join the Fund is 20,912% of deemed pensionable amount.  This includes 4.912% directed towards costs and risk benefits.


This contribution structure applies with effect from   
1/03/2017
  PERMANENT    
STAFF
% DPA
   CONTRACT   
STAFF
%DPA
Retirement saving

16

16

  • UCTRF GLA (6x cover)
0.7920*N/A
  • Disability Income
0.5000

N/A

  • Separate GLA (Perm 1x; Contract 3x disability cover and 3x GLA)
0.2088**0.6264
  • Administration Fee
0.16210.1621
  • Other expenses (UCT, Audit, Actuarial, Secretarial, FSB levies, Bank charges)
0.35710.3635
Sub-total

Balance for temporary additional retirement saving
2.0200

4.4800
1.1520

3.7600


Total % of DPA


22.520.912

Notes for Permanent Staff

*Provides cover of six times deemed pensionable amount in the event of death in service. This amount is taxable and subject to S37C of the Pension Funds Act.
**

Provides compulsory cover of one times deemed pensionable amount (and voluntary cover at the member's expense of up to four times dpa) in the event of death or permanent disability in service. This portion of the contribution is taxable as a fringe benefit monthly and so any benefit paid is after tax and is paid directly to the member's nominated beneficiaries. (i.e. not   subject to S37C of the PFA).


Can I increase my DPA?

Staff may negotiate an increase or decrease in their DPA which will result in a greater or lesser UCTRF contribution amount. There will be an associated increase or decrease in the Group Life Assurance cover, disability cover and the fringe benefit on the Separate Group Life Assurance cover. Please note, however, that any increase in the UCTRF contribution will not result in an increase in your guaranteed CoE, but will form part of your guaranteed CoE.

Can I make additional contributions to the Fund?

Your value in the Old Fund was transferred into this Fund. Any lump sums from a previous employer’s fund can also be transferred into the University of Cape Town Retirement Fund.  The employer may also make additional voluntary contributions to the Fund on your behalf.

The rules of the UCTRF allow the employer to make additional contributions to the Fund on the member’s behalf. The additional contributions are based on DPA (Deemed Pensionable Amount) and are for the purpose of increasing pensionable service and/
or retirement savings. Complete the form if you wish UCT to allocate part of your Cost of Employment (CoE) for this purpose. It is recommended that you consult with your HR Practitioner before completing and submitting this form. The completed form must be submitted with your COE schedule as part of the annual increase exercise or when your COE changes.

Contact your HR Practitioner should you be interested in having additional contributions made on your behalf or if you want to increase your DPA.

Can I transfer money from a previous Fund into the UCT Retirement Fund?

You can transfer money you have from a previous Fund into the UCT Retirement Fund. This amount will be credited in full to your Retirement Savings Account.

If your previous Fund was a Pension Fund (other than the AIPF), you would need to pay tax on that part of the transfer value that relates to your own contributions, as the UCT Retirement Fund is registered as a Provident Fund.