Contribution Option Form
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What are my total contributions towards the Fund?
Employees have a choice of different contribution rates.
What is my pensionable earnings?
Your pensionable earnings is the portion of your earnings used to calculate your contributions towards the Columbus Retirement Fund. Columbus uses annual pensionable earnings as the basis for calculating contributions to the Fund. This percentage differs for different levels of employees. The pensionable earnings are calculated as follows:
- Employees who are paid an hourly wage:
- Employer contributions – 200 hours x normal hourly rate x 12 months
- Employee contributions – 200 hours x normal hourly rate x 12 months
- Employees who are paid an annual package:
- Grades 00-3 employees: annual package multiplied by a factor of 1.000
- Grades 4-8 (12) employees: annual package multiplied by a factor of 0.923
- Grades 9-13 employees: annual package multiplied by a factor of 0.923
What are my contributions?
An amount equal to 5%, 6%, 7%, 8%, 9%, 10%, 11%, 12%, 13%, 14%, 15%, 16%, 17% or 17.5% of your pensionable earnings is deducted from your salary on a monthly basis according to your preference. This amount is tax deductible.
| Example 1 | |
|---|---|
| Monthly Pensionable Salary | R10 000 |
| Employee Contribution 7% | R700 |
Can I make additional contributions?
Any lump sums transferred from a previous employer’s fund will be transferred into the Columbus Retirement Fund. You may also make additional voluntary contributions to the Fund.
There is no limit to this amount, and contributions up to 27,5%, subject to an annual limit of R350 000, are tax deductible. Contact your HR representative should you be interested in making additional contributions.
What are my employer contributions?
The employer contributes 7.5% to your Fund Credit. A further 2.5% to pay for Fund and insurance costs is also made to the Fund.
The employer funds the disability benefit separately.
When can I change my contribution option?
You can change your contribution option at any time by submitting the contribution option form to your Payroll Administrator (Please note that Columbus will probably impose limitations with regard to how frequently you can exercise this option).
How can I change my contribution option?
By completing the contribution option form and submitting it to your Payroll Administrator.