FAQ

Rules of the Fund

1. What are the Rules of the Funds?
The Funds are managed according to a set of Rules. The rules have to comply with the requirements of the Pension Funds Act. This is similar to the legislation governing a country. The Rules specify the contributions made towards the Funds, the benefits to be paid to members, the management structure of the Funds, etc. The Rules of the Funds are drafted by technical experts in accordance with the Pension Funds Act and are then registered by the Financial Sector Conduct Authority (FSCA). The FSCA ensures that the Rules comply with all the requirements of the Pension Funds Act.

2. Do the rules ever change?
Certain sections in the Rules have to be changed from time to time; often because of legislative changes. These amendments will be communicated to members as and when they occur.

Membership of the Funds

1. Who can become a member of the Funds?
All full time employees of Columbus Stainless, who have not yet reached the normal retirement age of 60 years, but are over 18, will qualify for membership.

Fund Management

1. Who manages the Funds?
The Funds are managed by a Board of Trustees. The Trustees appoint a Principal Officer who is responsible for the day to day running of the Funds. For more information on the board of trustees, please see Fund Info in the menu above.

2. Who is the Funds’ Principal Officer?
Johan Hartzenberg

3. Who is the Funds’ Administrator?
AdminPeople. See their contact details under Contact Info.

4. Where is the registered office of the Fund?
First Floor
Building 2
Highgrove Office Park
50 Tegel Avenue
Highveld Techno Park
Centurion
Gauteng
0157

Operation of the Funds

1. How is my total value in the Funds calculated?
Both the Columbus Retirement Fund : Pension Section and Columbus Retirement Fund : Provident Section are Defined Contribution Funds. This means: whatever you put in, less costs, plus interest, is what you get out. But remember, depending on the portfolio you are invested in, returns can also be negative. For more information on the operation of the Funds, please see the relevant section in the virtual Member Booklet.

2. What is my Fund Credit?
Your Fund Credit in the Funds is your own contributions, plus your employer’s contributions, less expenses, plus any returns earned on your portfolios in both the Funds.

Contributions

1. What are the total contributions towards the Funds?
Employees have a choice of different contribution rates. For more information, see below or the Contribution Option section under Forms / Options.

2. What is my pensionable earnings and what are my choices?
Your pensionable earnings is the portion of your earnings used to calculate your contributions towards the Columbus Retirement Funds on. Columbus uses annual pensionable earnings as the basis for calculating contributions to the retirement funds. 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 or all regular income 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 (12/13) employees: annual package multiplied by a factor of 0.923
  Grades 9-13 employees: annual package multiplied by a factor of 0.923

3. Can I make additional contributions?
Any lump sums transferred from a previous employer’s fund will be transferred into the Columbus Retirement Funds. You may also make additional voluntary contributions to either of the Funds. There is no limit to this amount, however only R1 800 will be tax deductible. Contact your HR representative should you be interested in making additional contributions.

Costs

1. What costs are deducted off contributions?
Costs for administration fees and death benefit premiums, are covered by the additional contributions made by the employer.

Investments

1. Which portfolios are available to choose from?
For more information on the portfolios to choose from, please see the Portfolio Options page in the menu above. More information can also be obtained in the virtual member booklet as well as on the AdminPeople Secure Member Site.

2. How do I choose an investment portfolio?
Members have different needs and requirements when it comes to investments and the risk they can accommodate. Each portfolio has its own unique risk profile and you choose the portfolio whose risk profile closely matches yours.

3. How do I determine my investment risk profile?
The amount of risk members can readily accept depends on a range of variables. To read more on your risk profile, please study the Investment section of the virtual member booklet. To get a broad sense of your investment risk, please also try out the Investment Risk Profile Assessor under DIY in the menu above.

4. How important are historic returns when choosing an investment portfolio?
Portfolios invested in shares will usually have good returns in some years and poor returns in other years. But over an extended period, their potential for achieving good returns is high. It is therefore not a good idea to look at short term historic returns when deciding which portfolio to choose. What often happens, is that members switch out of poor performing portfolios when markets fall, and they do not switch back in time to share in the good returns when these portfolios eventually recover. It is therefore important to choose portfolios based on your investment risk profile.

6. What are the portfolio returns?
The portfolio returns can be viewed under My Investment Profile in the menu above as well as on the Secure Member Site.

7. How do I switch?
Members can switch between these portfolios any time, except if they are invested in the Full Vest portfolio. If you want to switch money into or out of the Full Vest portfolio, the switch will only be implemented on 1 January and 1 July of every year. It is important to note that you have to give five months notice for Full Vest Portfolio transactions. For the other portfolios, your switch will be actioned within 10 days after the administrator has received your option form.

8. Where can I switch?
Members can switch their retirement fund money between the different portfolios by completing an Investment Option form. Pls see Forms / Options for the form. Please also note the switching costs under Forms / Options

Withdrawal Benefits

1. What is my withdrawal benefit?
When you leave the Columbus Retirement Funds, your Fund Credit in the Funds becomes payable. This is calculated as follows:

• Your employee contributions towards the Pension Section
• Your employer contributions towards the Pension and Provident Sections
• Less: any administration fees and other expenses
• Less: any risk benefit costs
• PLUS: any investment returns earned on both Funds
• Less: any permissable deductions (see permissable deductions in the virtual member booklet)

2. By when do I have to notify the Funds that I will be leaving Columbus Stainless?
It is important to notify the Funds 30 days before your final day of service.

3. Withdrawal Options (what can I do with my money?)
When you leave Columbus Stainless, you cannot leave your money in the Columbus Retirement Funds. You have the following options:

• Take your money in cash (but beware of the tax payable - see Taxation section in virtual member booklet)
• Transfer your money to your new employer’s Pension and / or Provident Funds
• Transfer your money to a Retirement Annuity Fund
• Transfer your money to a Preservation Fund
• For more information on each of these options, please study the Withdrawal Benefit section of the virtual member booklet.

Retirement Benefits

1. What is the normal retirement age?
The normal retirement age of the Funds is 60 years.

2. What are my benefits at retirement?
At retirement you will get your entire Fund Credit in both funds. This includes:

• Your employee contributions towards the Pension Section
• Your employer contributions towards the Pension and Provident Sections
• Less: any administration fees and other expenses
• Less: any risk benefit costs
• PLUS: any investment returns earned on both Funds
• Less: any permissable deductions (see permissable deductions in the virtual member booklet)

3. What are my options at retirement?
At retirement, you have the following options:

One option on both Funds is to take your tax free portion in cash and use the balance to purchase a pension. It is recommended that you speak to a financial advisor to assist you with this important step. For contact details of a financial advisor, please see Contact Info.

Death Benefits

1. What are my death benefits?
At death, all members of the Columbus Retirement Funds will receive a benefit equal to their Fund Credit in the Columbus Retirement Funds plus a group life death cover benefit of four times their annual pensionable salary.

2. How will my benefit be distributed?
Section 37C of the Pension Funds Act and the rules of the Columbus Retirement Funds state that in the event of your death, your benefit in the Funds should be distributed as follows:

• To dependants; or
• Dependants and nominees; or
• If there are no dependants, to nominees; (but any deficit in your estate first has to be settled); or
• If there are no dependants or nominees, to your estate.

The Trustees of the Funds have to ensure, by law that all your financial dependants are cared for, before any money is paid to nominees. Financial dependants include illegitimate, adopted children, and spouses. When you have children or a spouse or have people who are financially dependent on you, their details should be written in the beneficiaries section on your nomination form.

For more information on the distribution of your benefit as well as for your Expression of Wish Form, please see Expression of Wish Form Forms / Options.

3. Where do I get my Expression of Wish Form?
Under Forms / Options on the menu above.

4. Will I be covered for death after retirement?
No, there are no benefits for death after retirement.

Disability Benefits

Ill-health (disability) benefits are not provided by the Columbus Retirement Funds. It is covered under a separate insurance fund held by the employer.

1. How much of my benefit will be paid to my ex-spouse should I be divorced?
Your retirement benefits form part of your overall assets and a portion is often paid to the ex-spouse in the case of divorce. The portion paid to your ex-spouse will depend on the percentage specified in your Decree of Divorce. It is your responsibility to notify the Funds of a Decree of Divorce and to provide the Funds with a copy thereof.

2. What information must be contained in my Decree of Divorce?
To ensure that the benefit can be paid from the Fund to your ex-spouse, you should ensure that the Decree of Divorce contain the following:

• The Full name of the Fund
• That the Fund is ordered to pay the benefit to the non-member spouse; and
• The value of the benefit either as a % or Rand Value.

Please see below a suggested clause to be used in the Decree of Divorce to ensure that the Decree is legally binding on the Fund.

The non-member spouse is entitled to 50% of the member’s pension interest in the Columbus Retirement Fund (Pension and Provident Sections). The Columbus Retirement Fund (Pension and Provident Sections) are ordered to pay this amount to the non-member spouse.

3. When will the benefit be paid to my ex-spouse?
Please note that due to the recent Changes to the Divorce Act, the non-Member spouse can receive the benefit from the Fund immediately, subject to the Decree of Divorce complying with the requirements of the Act. Previously the non-member spouse would have to wait for the Member spouse to withdraw or retirement from the Fund before receiving the benefit entitlement.

The payment will be processed once you’ve provided the Funds with your Divorce Order. This should happen as soon as possible after your date of divorce.

4. Who will pay the tax on the benefit paid to my ex-spouse?
Previously, the member paid the tax on the ex-spouse’s benefit, except if the Divorce Order stated otherwise. With effect from 1 March 2009, the ex-spouse pays the tax on his or her benefit.

Taxation

1. What tax is payable at withdrawal or retirement?
It is important that you understand the different tax implications when benefits are paid. For more information on this, please read the Taxation section.

Housing Loans

1. Do the Funds provide housing loan benefits?
The Trustees regularly debate important matters such as home loans and have decided that retirement savings should not be used for this purpose.

Complaints

1. To whom do I complain about the Fund and / or its management?
Should you have a complaint relating to the management of the Funds, their administration, member communication, benefit payments or any other matter, please do not hesitate to contact the Principal Officer. The Principal Officer has to respond formally within 30 days. If you are unhappy with the Funds' response, there is also a more formal route, where complaints can be lodged with the Pension Funds Adjudicator.

2. How can I lodge a complaint with the Pension Funds Adjudicator?
You can only lodge a complaint with the Pension Funds Adjudicator once you’ve first lodged the complaint with the Board of Trustees of the Funds. They then have 30 days in which to respond. If you receive no response, or the response is not satisfactory, you will be able to lodge your complaint the Pension Funds Adjudicator.

3. Where can I contact the Adjudicator?
Website : www.pfa.org.za

4. What can I do if I am not satisfied with the Pension Funds Adjudicator’s ruling?
Should the Pension Funds Adjudicator’s ruling not be to your satisfaction, you may apply to the division of the High Court, within 6 weeks of the ruling.

Financial Planning

1. Where can I see whether I have enough money to retire comfortably?
To see whether your benefits in the Columbus Retirement Funds are enough, please use the Retirement Provision Calculator. Your benefit in the Columbus Retirement Funds might, after consultation with your personal financial advisor, not be enough and you will most probably have to either increase your contributions to the Funds or use other vehicles to increase your savings for retirement.

2. Who can I contact for financial planning advice?
For assistance with planning for your retirement, please contact your own financial planner, or see details under Contact Us.