Introduction 1
Membership 2
Members’ Funds 3
Contributions 4
New Pension Formula 5
Pensions Paid 6
Investment Portfolio 7
Investment Income 8
Rate of Return 9
Population Growth 10
Life Expectancy 11
Dependency Ratio 12
Actuarial Valuation 13
Administrative Expenses 14
TABLE OF CONTENTS
IntroductionSeychelles Pension Fund (SPF) is pleased to present its fifth edition of ‘Pensions in Figures’. This pocket-sized edition for 2015 comes with a new, more attractive design and compares figures such as contributions, benefits paid, investments, etc. with those of the previous year.
2015 was an important year for SPF and its members as it saw the introduction of a new pension formula which links benefits to contributions and provides a more transparent methodology in benefits calculation which brought better pensions especially to those retiring after a long service.
2015 also saw tremendous progress and growth for SPF with significant increase in contributions,members’ funds, investment returns, etc.
SPF continues to work for its members and to make prudent invesments of members’ funds to allow them to have the best possible retirement benefits.
Happy reading!
2015 PENSIONS IN FIGURES
SEYCHELLES PENSION FUND| 1
MEMBERSHIP58,901
0.7%membership increase
from 2014 to 2015
(from 58,482 to 58,901)
Active members41,787
Since 2006 total registered members increased by
18% (49,882 to 58,901)
Membership2015 PENSIONS IN FIGURES
SEYCHELLES PENSION FUND| 2
Members’Funds
2015SCR1.2b
14% increase inmembers’ funds
from 2014 to 2015
(from SCR1.04b to SCR1.2b)
From 2006 to 2015 the total member’s funds increased by
SPF MEMBERS
FUND
SCR719m
Members’ funds isthe total contributions collected and interest
earned on members’ accountsafter deduction of pensions
and benefits payments
*
Interest of 4% onall members accounts .
(3% in 2014)
2015 PENSIONS IN FIGURES
SEYCHELLES PENSION FUND| 3
Contributions
Total Mandatory contributions made in 2015
Voluntary contributions
worth
increase in mandatory contributions from 2014 to 2015 (from SCR171.96m to SCR195.43m)
1%
Voluntary contributions have increased by 22%
SCR7.6m in 2015.
In 2015 contributions represented 56% of pensions paid (53% in 2014)
14%
SCR195.4mSCR9.8m
collected from 2,214 members
Contribution RatesEmployer 2%Employee 2%
2015 PENSIONS IN FIGURES
SEYCHELLES PENSION FUND| 4
New Pension FormulaEffective from 01 January 2015
Links pensions paid to contributions made.
Average Wage for the last five years
xAverage Wage Growth
xAccrual Rate
xYears of Contribution
Formula
2015 PENSIONS IN FIGURES
SEYCHELLES PENSION FUND| 5
Pensions Paid SCR 101.9min pension benefits paid to
3,670 benefiaries
From 2014 to 2015 pensions paid have increased by SCR22.8m (from SCR79.1m in 2014 to SCR101.9m in 2015)
Number of beneficiaries increased by 3% from 2014 to 2015
(from 3,565 in 2014 to 3,670 in 2015)
The SPF had only 362 beneficiaries in 2006 compared to 3,670 in 2015 (x10 increase)
Benefits paid to members in 2015:•Normal Retirement Pension
•Permanent Incapacity Pension
•Surviving Spouse’s Pension
•Children’s Pension
•Post-Retirement Surviving Spouse’s Pension
•Post-Retirement Children’s Pension
•Lump sum payment
SCR 69.3.mSCR 18.8m
SCR 5.3mSCR 2m
SCR 4.1mSCR 0.4m
SCR 7.5m
Retirement ages:60 years optional
and 63 years
compulsoryretirement
29% from 2014 to 2015
Replacement rate :33%(Percentage of a worker’s
pre-retirement income that is paid out as a
pension upon retirement)(OCED countries average: 69%)
2015 PENSIONS IN FIGURES
SEYCHELLES PENSION FUND| 6
Investment Portfolio 2015 PENSIONS IN FIGURES
SEYCHELLES PENSION FUND| 7
Investment Income SCR139m
representing 37% of the total income which includes pensions contributions(SCR89m in 2014)
SCR1.5bin investment funds in 2015
9.6%average rate of return on investment
(7.4% in 2014)
Investment income has increased by 56% since 2014
(SCR1.2b in 2014)
2015 PENSIONS IN FIGURES
SEYCHELLES PENSION FUND| 8
2011 2012 2013 2014 201520100%
2%
4%
6%
8%9% 9.20% 9.60%9.30% 10%
7.40%
Rate of Return
10%
9.6%2015 average rate of return on investments
2015 rates of returns on investments in:Government Securities 6.1%
Commercial banks 8.7%Equity Securities 20%
Overseas Investments 4.2%Real Estate 9.3%
2015 PENSIONS IN FIGURES
SEYCHELLES PENSION FUND| 9
2015 total resident population
93,419
Population Growth
Growth of 2% (91,400)
from 2014
Fertility rate 1% in 2015
2015 PENSIONS IN FIGURES
SEYCHELLES PENSION FUND| 10
Life Expectancy 2015 Life expectancy for both sexes 74.8
69.879.8MaleFemale
Life Expectancy is expected to increase to 75.05 in 2017 and
to 75.4 in 2020
2012 2014 2016 2018 20202010
72
73
74
75
76
73.3
74.2
73.2
74.9 75.15 75.4
Average life expentancy at birth
2015 PENSIONS IN FIGURES
SEYCHELLES PENSION FUND| 11
Dependency Ratio
Defined as the numberof persons aged 0-14 & 65+ who are dependent upon the working age 15-64 years expressed per thousand population
persons in 2015depending on
1,000 persons of working age
(424 persons in 2014)
427
2015 PENSIONS IN FIGURES
SEYCHELLES PENSION FUND| 12
PENSIONS IN FIGURES
SEYCHELLES PENSION FUND| 13
Actuarial ValuationThe �nancial sustainability of the Seychelles Pension Fund is an
important concern. In accordance with Section 55 of the Seychelles Pension Fund Act, the SPF is required to carry out an
actuarial review every three years. The last actuarial review of the SPF for the period ending December 2013 was completed by
PricewaterhouseCoopers (PWC) of Sydney, Australia.
The Actuarial Review of 2013 showed that SPF is sound and �nancially sustainable. However, to sustain the SPF in the
long term up to 2050 and beyond there is a need for additional contribution of 4.5% to 5% to be spread out over the years
as set out below to minimise the impact it may have on members’ take home pay.
The recommendation is to start the collection of additional contribution for the future as follows:
1% of earnings
2023
1% of earnings
2028
1% of earnings
2033
1% of earnings
2038
0.5% of earnings
2018
1% of earnings
2015 PENSIONS IN FIGURES
SEYCHELLES PENSION FUND| 14
2015 SCR31.2m
1.4% of total SPF assets (SCR2.3b)28% of SPF total expenditure(SCR110m)
For further details contact:Seychelles Pension Fund
P.o Box 576Caravelle House
Victoria,Mahe, Repbublic of SeychellesTelephone :4294699
website: www.pensionfund.sc