Secure your future – it’s never too early to start      

The contribution rate is 22,5% of your deemed pensionable amount (DPA - as determined by you) for permanent employees and employees employed on a contract of more than 2 years whose current contract started on or after 1 July 2017.

The contribution in respect of employees employed on a contract of more than 2 years whose current contract started before 1 July 2017 is 20,912% of deemed pensionable amount.

A portion of this contribution goes towards administration costs, UCTRF costs as well as death and disability benefit insurance costs.  

The breakdown is set out below:

This contribution structure applies with effect from   
1 July 2018

Total % of DPA

  • UCTRF GLA (6x cover)
  • (3x GLA cover for contract staff).
  • Disability Income


  • Separate lump sum death and disability cover
  • (3x DPA iro contract staff whose contract started before 1 July 2017; 1x DPA iro other staff)
  • Administration Fee
  • Other expenses (UCT, Audit, Actuarial, Secretarial, FSB levies, Bank charges)



Total % of DPA towards retirement


Notes for Permanent Staff

Can I increase my DPA?

Staff may negotiate an increase or decrease in their DPA, which will result in a bigger or smaller contribution to the UCTRF. There will be an associated increase or decrease in the Group Life Assurance cover, disability cover, and the fringe benefit tax on the premiums for the lump sum death and disability cover and disability income benefit. 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 UCTRF? 

Your value in the Old Fund was transferred into the UCTRF. 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 UCTRF on your behalf.

The rules of the UCTRF allow the employer to make additional contributions to the UCTRF on the member’s behalf. The additional contributions are based on DPA (Deemed Pensionable Amount) and are for the purpose of increasing retirement savings. Complete the form if you wish UCT to allocate part of your Cost of Employment (CoE) for this purpose. 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 UCTRF? 

You can transfer money you have from a previous fund into the UCTRF. 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 UCTRF is registered as a provident fund.

How are my contributions taxed? 

Your total contributions to pension, provident or retirement annuity funds up to the lesser of R350 000 a year or 27.5% of gross remuneration or taxable income (whichever is greater) will be tax deductible. The balance will be taxed.

This means that the calculation is based on your actual taxable income or gross remuneration and not your DPA.  It also means that any contributions that you make to any other fund (such as a personal retirement annuity) will be taken into account when calculating the tax-free amount.