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

Accumulated Retirement Savings:  
Your Accumulated Retirement Savings in the UCTRF are made up of any transfer values from previous funds, plus your employer contributions towards retirement savings,  plus additional voluntary contributions (if applicable), plus any investment returns earned in the UCTRF.

Additional Contributions:
Voluntary contributions paid to the UCTRF on the member’s behalf in order to increase retirement savings.

One that receives a benefit.

Consumer Price Index (CPI) – this measures inflation.

Cost of Employment.

Deemed Pensionable Amount (DPA):  
Deemed Pensionable Amount (DPA) is a percentage of guaranteed CoE and is a figure used to calculate the amount allocated to the UCTRF and UCTRF benefits.

Default choice:  
The investment chosen for you should you fail to exercise your own choice.

‘Dependant’ in relation to a member, means:

(a) a person in respect of whom the member is legally liable for maintenance;
(b) a person in respect of whom the member is not legally liable for maintenance, if such person

       (i)   was, in the opinion of the board, upon the death of the member, in fact dependent on the member for maintenance;

      (ii)   is the spouse of the member;

      (iii)  is a child of the member, including a posthumous child, an adopted child and a child born out of wedlock; 

(c) a person in respect of whom the member would have become legally liable for maintenance, had the member not died.

Divorce order:  
Order made by a court that ends a marriage.

Final payment risk:  
This refers to the risk that at the time when you leave the UCTRF and want to use your retirement savings, investment markets are weak, and so the value of your retirement savings is at a low point.
It is crucial that you understand that “final payment risk” mainly applies when you leave the UCTRF and want to use
your retirement savings. For example, if you resign and decide to invest your UCTRF resignation benefit for your retirement, you should be less concerned about your “final payment risk”.
As a general rule, the closer you are to your retirement age, the more you are exposed to “final payment risk”.

Housing Loan (pension backed): 
The Pension Funds Act allows you to borrow funds for housing purposes only, using your withdrawal benefit in the UCTRF as security. The home must be owned by yourself or your spouse.

Inflation is a rise in the price of goods and services in an economy over a period of time.

Inflation risk:  
This refers to the risk that the UCTRF contributions that you set aside monthly as your retirement savings do not earn sufficient
investment returns to provide reasonable retirement benefits.

Investment Switch:  
Transfer of your investment from one portfolio to another.

Life Stage Model:
The Life Stage model is the UCTRF’s approved default investment strategy. The Life Stage model is intended to be a
suitable strategy for members whose aim is to maximise postretirement income subject to acceptable risk. The Trustees 
select the investment portfolios underlying the Life Stage model investment strategy, and also the switching rules in the
period leading up to retirement, and review these from time to time working together with investment experts and the
appointed investment consultants.

Living Annuity:  
A living annuity is a special type of compulsory purchase annuity offered by insurers and retirement funds, under
which the income (or annuity amount) is not guaranteed but is dependent on the performance of the underlying
investments. It allows the annuitant to select an income level that ranges between a pre-defined minimum and 
maximum level.

To propose by name as a beneficiary.

Pension products:

Complete Picture Pension (Index-linked) with 3.5% PRI – a pension where pension increases depend on investment returns – the PRI3.5% is priced to target (but not guarantee) pension increases broadly in line with inflation (CPI).

Full inflation linked – pension where pension increases are guaranteed to increase with CPI.

Full inflation linked +2% – pension where pension increases are guaranteed to increase with 2% above CPI.

Guaranteed level annuity – pension where the pension never increases.

Guaranteed with 5% p.a. escalation – pension where the pension increases by a fixed 5% every year.

Principal Officer:  
The role of the Principal Officer is to ensure the UCTRF is managed and operated effectively and efficiently to ensure quality
service to the stakeholders – which could be the members and pensioners of the UCTRF, and the employer.

Proof Free Limit: 
The limit specified by the insurer up to which members have full cover without having to submit medical information. 
Members whose benefit is more than the proof free limit, will have to submit medical information, before they will be covered for their full benefit.

Regular occupation:  
Means the occupation regularly followed by the insured immediately before the commencement of disability,
disregarding any duties not normally associated with an occupation of that nature.

Risk benefit:  
Refers to death and/or disability benefit.

Risk Profile:  
All investments involve a degree of risk. Your risk profile will depend on your circumstances (other assets, age, dependants etc). Your appetite for risk (e.g. whether you wish to seek the higher returns associated with higher risk or not) will depend upon your risk profile. A good financial advisor will determine your needs and produce a risk profile for you.

Section 37C (S37C) of the Pension Funds Act 24 of 1956: Pension Funds Act:  
Payment of death benefits is regulated by S37C, which grants the Trustees a 12-month period from the death
of the member to search for dependants of the deceased member. This needs to be done despite the existence of a
nominated beneficiary. The Trustees are granted discretionary powers in awarding the death benefits. The Trustees cannot
merely follow the beneficiary nomination form or pay the benefit to the dependants found by them, but must exercise
their discretion provided to them by the S37C directive in doing so. The beneficiary nomination will act as a guideline
to the Trustees as to the wishes of the member, but in no way diminishes their responsibility in determining who should
receive the death benefit.

Shari’ah-compliant funds are investment vehicles which are fully compliant with the principles of Islam. The funds
are prohibited from making investments in industries categorised as morally deficient, such as those related to
gambling or alcohol. Because Islam does not permit any form of exploitation, any kind of investment in conventional
banking is outlawed. With the concept of debt also contrary to the principles of Islam, investment in highly leveraged
companies is also not permitted for Shari’ah-compliant funds. The exclusions extend to potential investments in other
funds which offer guaranteed returns. Any use of futures and options, either by the fund managers or by companies in
which the funds invest, is also likely to attract close scrutiny by the funds’ supervisory Shari’ah boards.

Suitable occupation:  
Means an occupation which the insured, by virtue of his/her training and experience, could reasonably be expected to
follow – with or without in-service training – if it were not for the insured’s functional impairment.

The Pension Funds Act places responsibility for the governance of a Pension or Provident Fund in the hands of a Board of Trustees. The Act requires a minimum of four Trustees, of whom two must be elected by the UCTRF’s members. The UCTRF Rules provide for a Board of 14 Trustees (plus alternatives): of the 14, seven are nominated by the employer and seven are elected by the members.