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ROAD FREIGHT AND LOGISTICS INDUSTRY

PROVIDENT FUND

MEMBER GUIDE

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INDEX PAGE

1. Introduction 3

2. Structure of the Fund 3

3. Membership Criteria 4

4. Contributions 4

5. Register for Tax 5

6. Fund Credit – Your Retirement Savings 5

7. Fund Benefits 6

7.1 Retirement Benefit 6

7.2 Withdrawal Benefit 8

7.3 Disability Benefit 9

7.4 Death Benefit 10

7.5 Repatriation of Mortal Remains 10

7.6 Funeral Benefit 11

8. Investments 13

9. How to claim 15

10. Pension-backed home loans 16

11. Contact details 17

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1. INTRODUCTION

Thank you for taking the time to read this very important document.

The information in this booklet applies to all members of the Road Freight and Logistics

Industry Provident Fund. Every effort has been made to ensure the accuracy of this booklet,

however the Fund Rules will always apply in the event of any dispute arising. You may

obtain an electronic copy of the Rules of the Fund from the registered office of the Fund,

from the Fund administrator or the Fund’s website.

The Fund is approved in terms of the Income Tax Act and registered in terms of the Pension

Fund Act, under the name “Road Freight and Logistics Industry Provident Fund”. This

legislation governs the rules of the fund, the payment of benefits and the activities of the

Board of Trustees. What this means is simply that your money is protected by legislation and

laws to ensure that you have money saved for when you retire.

The Fund was established in 1992 to provide the members of the road freight and logistics

industry with adequate retirement and risk benefits and also to pay any withdrawal claims

when they arise.

We recommend that you obtain professional advice from a licensed financial adviser before

you exercise any options with regard to your retirement benefits.

2. STRUCTURE OF THE FUND Your Fund is a provident fund and provides benefits for when you retire or leave the service

of your employer before retirement. A separate disability policy provides income

replacement if you become disabled and the group life scheme provides benefits in the

event of your death.

Your Fund is managed by a Principal Officer and a Board of eight Trustees. The Board

appoints an administrator, actuary, asset manager, auditor and investment managers to

assist the Fund. The Board consists of the following members:

Joe Letswalo Principal Officer

Zenzo Mahlangu Chairman

Mdumisani Mabaso Vice-Chairman

Dumo Mbongiseni (Lovemore) Masango Board Member

Tebalo Samuel Maloka Board Member

John Tsile Mahuma Board Member

Johnson Gamede Board Member

Solomon Mothibedi Board Member

Zack Mankge Board Member

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Role Players Involved in the Fund

SANLAM Front Office - they are responsible to collect contributions from the

employer, and they assist members with enquiries, and they collect

claims and make sure they are complete before submitting to SALT

EB for processing.

SALT EB Back Office - they receive the contribution schedules from Sanlam and

allocate contributions to members accounts. SALT receives complete

claim forms from Sanlam and process and pay claims. SALT

responsible for the administration of member records and compiling

the financial statements of the Fund as well as producing the member

benefit statements.

BOPHELO

LIFE INSURANCE Responsible for Death, Funeral and Disability Benefits.

3. MEMBERSHIP CRITERIA

All staff members who fall within the eligible categories specified by the Fund are eligible to

join the Fund. Membership is compulsory. Membership of the Fund ceases when you

retire, die, your employer ceases participation in the Fund or you cease to be employed by

your employer due to ill health, retrenchment or resignation.

4. CONTRIBUTIONS

Every month, active Members contribute 10% of wages or salary towards their retirement

savings.

The employer also contributes 10% of member’s wages (on behalf of the member) to the

Fund to cover their risk benefits, other Fund expenses as well as additional retirement

savings.

NOTE: Audited Benefit Statements are distributed annually

From 1 March member and employer contributions are taxed as fringe benefits

Retirement savings are invested by the Fund over the

term of membership. The interest earned through this

investment is added to your retirement savings every

month.

Member Contributes 10% (100% of your

member contribution is invested for you by the

Fund)

Employer Contributes 10% (a portion of the

employer’s contribution goes towards the

various costs including risk benefits and the

remainder is invested for you by the Fund)

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5. REGISTER FOR TAX

It is very important that you ensure that you are a registered tax payer before electing to

withdraw or retire from the Fund. If you are not registered as a tax payer, or if your tax

affairs are not in order SARS will not provide a tax directive and your benefits from the Fund

cannot be paid.

6. FUND CREDIT – YOUR RETIREMENT SAVINGS Your Fund Credit is the value of your accumulated savings in the Fund.

Accumulated Savings is the sum of:

your benefit transferred into the fund from any previous fund (if applicable);

your contributions made to the Fund;

the contributions made by your employer to the Fund on your behalf, less the costs of

the death and disability benefits and of the administration of the fund; and

the net investment growth (after investment fees) earned on the abovementioned

amounts.

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7. FUND BENEFITS

7.1 RETIREMENT BENEFITS

Normal retirement age is 65 years and you may retire early from the age of 55, with your

employer's consent.

Contributions (that are allocated towards retirement savings) are invested by the Fund over

the term of your membership. The interest earned on the contributions invested (bonus

allocations) are also added. Retirement fund benefits are paid in a cash lump sum to you.

Retirement fund benefits taken in cash are taxed if the benefit is greater than R500 000.

Payment of fund benefit

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Retirement benefits taken in cash will be taxed according to the table below:

Lump sum Retirement Tax liability

R0 to R500 000 Tax free

R500 001 to R700 000 18%

R700 001 to R1 050 000 R36 000 + 27% of taxable income above R700 000

R1 050 001 and above R 130 500 + 36% of taxable income above R 1 050 000

NOTE ON RETRENCHMENT

If members are retrenched and they are younger than 55 years - the exit is seen as a

withdrawal from the Fund and is paid as a resignation benefit. Tax free amount is only

R 25 000.

If the member is older than 55 years - the exit is seen as a retirement from the Fund and the

benefit is paid as a retirement benefit. Tax free amount is R 500 000.

DEDUCTIONS ALLOWED FROM FUND BENEFITS

When benefits are paid to members certain deductions are allowed in terms of Section 13 D

of the Pension Funds Act. These deductions are called a Lien. The deductions as specified

below will be deducted from the member's fund value before the balance is paid to

members, if applicable. These deductions are valid for claims relating to retirement,

resignation, retrenchment, dismissal, death or disability benefits.

A lien is a deduction by the Pensions Funds Act to pay for:

Maintenance orders (child support);

Divorce orders;

Home loans attained through the Provident Fund;

Refund of damage caused to the employer by theft, fraud or dishonesty.

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7.2 WITHDRAWAL BENEFITS – (Resignation, Retrenchment, Absconding or

Dismissal)

Withdrawing from the Fund

Your total fund credit/savings will be paid out to you as a lump sum should you exit the Fund

and leave the Road Freight industry. Exiting the Fund can be due to the following

reasons:

• End of contract with employer

• Resignation

• Absconding

• Dismissal

• Other (Section 14 transfer)

When you exit the Fund you can:

• Transfer your benefit to your new employer’s Fund;

• Transfer your benefit to a preservation or retirement annuity fund of your

choice; or

• Your fund savings can be paid as a cash payment into your bank account.

Remember that withdrawal benefits taken in cash is taxed according to the following

table:

Lump sum withdrawal benefit Tax liability

R0 to R25 000 Tax free

R25 001 to R660 000 18% of the amount above R25 000

R660 001 to R990 000 R 114 300 + 27% of the amount above R660 00

R990 001 and above R 203 400 + 36% of the amount above R990 000

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7.3 DISABILITY BENEFIT

All active Members of the Fund are covered for this benefit provided contributions are up to

date. Part of the money the employer contributes every month pays for this benefit.

Should you become permanently disabled whilst you are in service and your claim is

approved by the medical provider you will receive three times your annual wages/salary as a

cash lump sum.

The benefit: 3 x Annual Wages/ Salary.

Example:

If you earn R5000 per month - your annual wages amount to R 60 000.

The Disability benefit payable is therefore:

R60 000 x 3 = R 180 000

Plus:

Your full retirement fund savings (Fund Credit)

If you exit and leave the Fund you will no longer be covered by or be able to claim for the

disability benefit.

There are strict timelines in which the member must notify the Fund of his/her disability as

well as timelines for submitting the claim documents. Please make sure that you understand

these timelines.

6 Month waiting period

The waiting period for disability is 6 months. The waiting period and the process of applying

for the benefit runs concurrently. This means that the member /employer must

simultaneously notify the Fund of the potential disability claim (within the first 3 months from

last day active at work), and submit the relevant claim forms and additional medical report/s

requested within 6 months.

The insurer will assess the claim documentation during the waiting period, provide feedback

on whether the member is able to return to work or not (given the medical evidence and

claim documentation). If the claim is approved for disability (member not fit to return to work)

then the insurer will pay the lump sum benefit after the 6 months waiting period has expired.

During the six month waiting period the employer must continue to pay the disability

premiums and administration costs, if these premiums are not paid the insurer will not pay

the disability claim. It is imperative that contributions, especially risk premiums and

administration fees from the Employer’s side remain intact until such time that the employer

can ascertain what the circumstances of the member is.

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7.4. DEATH BENEFIT

All active members of the Fund are covered for this benefit provided contributions are up to

date. Part of the money your employer contributes every month pays for this benefit.

The Death benefit pays out to your dependants or beneficiaries should you die while an

active member of the Fund.

The following 3 benefits become payable to your dependants:

3 x annual wages as lump sum

Total Fund credit/ retirement savings as a lump sum

Funeral Benefit (paid by Bophelo Life Insurance within 48 hours after all

documentation is received)

If the member exits the Fund they will no longer be covered by or be able to claim for the

death benefit.

Although the Trustees will follow wishes as requested on the beneficiary nomination form as

far as possible, the final decision of who will receive the death benefits rests with the

Trustees who must also consider any other dependants not nominated. The Pension Funds

Act allows trustees up to 12 months to investigate and decide how death benefits will be

distributed. If you do not have dependants, your benefit will go to your beneficiaries.

7.5 REPATRIATION OF MORTAL REMAINS

In the event of the member’s death outside of their home town (at least 150 km away),

assistance will be given and payment made towards the cost of transporting the deceased to

a location in their home town within the territory. The transportation extends to the rest of

Africa.

Remember to complete the Beneficiary Nomination Form

You must regularly (at least once a year) complete or update the

Nomination of Beneficiary form. The purpose of the Beneficiary

Nomination Form is:

1. To make it easier to trace dependants by contacting family

members using the contact details you have provided; and

2. To speed up the process of assessing who your dependants are

and the extent to which they were dependant on you.

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What are the benefits to you?

The benefit is free to members of the Fund - all costs are paid by the Insurer;

Telephonic assistance with the arrangement of funeral or cremation, should the event

occur outside the normal place of residence;

Transferring of ashes to the normal place of residence after cremation.

Assistance with obtaining the death certificate should the death have occurred in

unnatural or unusual circumstances;

Who should my family call?

The family of the deceased should contact Bophelo Life on 010 592 0951. Please provide:

Name of the Fund;

Name of the Employer of the deceased and provide deceased’s personal details

Please note that this benefit is applicable to main members of the Fund only (family

members not included).

7.6 FUNERAL BENEFIT

The funeral benefit pays out if you and/or any of your immediate family members die.

Who is covered?

All active members of the Fund and their immediate family members are covered by this

benefit provided contributions are up to date. Part of the money your employer contributes

every month pays for this benefit.

If you exit the Fund you will no longer be covered by or be able to claim for funeral benefits.

NOTE

Active member: A member who is currently contributing to the Fund

Immediate family member: Your spouse or your child (either biological or adopted)

Registered spouse: A husband or wife recognised by South African Law

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Funeral Benefits Schedule

The funeral benefit for Members and their immediate family members, with effect from 01 March 2017 is as follows:

Benefit

Member R50 000

Spouse R50 000

Children:

Age 14-21

(up to 29 if full time student)

R37 500

Age 6-13 R10 000

Age 1-5 R10 000

Age 0-11 months R4 000

Stillborn R3 000

Monthly premium deducted from the

employer contribution

R26.50

Funeral Claims

To avoid any payment delays, you should submit your claim as soon as possible. Funeral

claim payments are made within 48 hours after all documents have been received.

The claim form includes a list of supporting documents that must be attached when sending

in the claim. These include:

A certified copy of the death certificate;

Certified copies of the ID of the claimant and deceased (in case of a child

provide abridged birth certificate);

BI-1663 form from the hospital or funeral parlour must be attached when

claiming;

An affidavit by the member/ dependant/ beneficiary confirming the relationship

with the deceased, i.e. wife or brother;

Copy of bank statement of the person claiming the benefit showing claimant's

name, stamped by the bank OR letter from the bank confirming bank details,

must have name and ID or passport number on the letter. If no ID and only

passport, letter from the bank is always required.

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8. INVESTMENTS

In a defined contribution fund the member carries the investment risk, which means that they

are exposed to the risk associated with fluctuations in the investment markets, i.e. markets

can go up or down and this will affect the level of growth of the money invested.

Historically investment returns (growth both positive and negative) for the Fund were

provided for as bonuses declared at the end of each financial year and allocated to each

Member’s Individual Account, annually. An Interim Bonus was also declared to be paid to

those members who exit the Fund before the declaration of a final bonus.

From 1 March 2014 the Fund's investments were allocated monthly. This allowed the Fund

to update member benefits with the full monthly investment returns earned by investments

each month as opposed to bonus declaration arrangements whereby investment returns are

declared only annually.

How does monthly unitisation work?

The administrator (SALT EB) uses members’ net monthly contributions (after costs are

deducted) to buy units in the Fund portfolio they are invested in at the latest unit price which

is available. This not only ensures better governance and running of the Fund, but

transparency is also improved.

Example

Mr Jones is a new employee who started working for SkyNet on 1 February 2014. Every

month Mr Jones’ net contributions to the Fund equals R1000.

If the unit price for the Fund Portfolio is R1 on 1 March 2014 (when his first contribution is

received) Mr Jones can buy 1000 units with his R1000 contribution to the Fund.

Date Net monthly contribution ÷ Unit price Number of units purchased

1/03/2014 R1000 ÷ R1 1000

1/04/2014 R1000 ÷ R0.80 1250

1/05/2014 R1000 ÷ R1.60 625

Total units on 1 May 2014 = 2875.00

To work out what Mr Jones’ fund credit is at 1 May 2014, you need to multiply the number of

units with the unit price for that month:

Date Unit price x Units Total fund credit

1/05/2014 R 1.60 x 2875 R 4 600,00

If Mr Jones’ fund credit was calculated on 1 April 2014, his fund credit would have been:

Date Unit price x Units Total fund credit

1 April 2014 R 0.80 2250 (1000 +1250) R 1 800,00

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What do we learn from the above example?

• Unit prices will change every month

• When unit prices go up members can buy fewer units in a portfolio but their fund

credit increases

• When unit prices go down/decrease members can buy more units in a portfolio but

their fund credit decreases

• Units are bought once a month when members’ contributions are received

Differences in the monthly unit prices are dependent on market performance. When the

markets are performing badly, the unit price will tend to decrease and when markets are

growing strongly, the unit price will increase.

Members must remember that your fund investments are long-term investments and monthly

movements in unit prices are part and parcel of the volatility of the investment markets.

Who are the Fund's Asset Mangers?

The Fund is committed to the ongoing transformation of South Africa for an inclusive

economy by supporting service providers in the investment process that contribute

significantly to the economic empowerment of targeted Black South Africans. The Fund

believes in black talent to manage and invest money. For the Fund, BEE is not a tick box

compliance issue but a business imperative for growth and redress of the inequalities in our

society.

The Fund policy is to have not less than 60% of the domestic assets of the Fund managed

by Black owned and controlled investment management companies as defined in the

Financial Services Charter and the Broad Based Black Economic Empowerment Codes of

Good Practice.

Asset managers are appointed by the Trustees to exercise discretion in investing the assets

of the Fund. The asset manager is expected to invest the Fund’s assets with the same care,

skill, prudence and due diligence under the circumstance prevailing, that an experienced,

professional asset manager acting in a similar capacity and fully familiar with such matters,

would use in the investment of like assets with like aims.

The Fund currently has 13 asset managers as of June 2015:

Level One BEE Managers Level Two BEE Managers Level One BEE Managers

Meago Afena Capital Argon Asset Management

Mvunonala Mazi Capital Prowess

JM Busha Futuregrowth Balondolozi

Vunani Momentum

Novare Equity Partners Investec Asset Management

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9. HOW TO CLAIM

STEP 1: Fill in the claim form

Where to get a claim form:

www.rflipfund.co.za

Call 086 173 5473 toll free or visit the Sanlam RFLIPF walk-in-centres in

Braamfontein, Durban and Bellville (Cape Town);

Employer ‘s HR department

The claim form includes a list of supporting documents that must be attached when sending

in the claim.

STEP 2: Get the employer to sign the claim form.

Your employer or HR department will need to sign the claim form so that the claim can be

processed and payment made.

Disability claims require a medical certificate to be verified by the Funds appointed medical

provider.

Death and Funeral Claims require certified copies of the Death certificate for verification and

supporting documents as required on the claim form.

STEP 3: Submit Claim

Submit the signed and stamped claim form with the required supporting documents to the

Sanlam RFLIPF walk-in centres in Braamfontein, Durban or Bellville.

Or submit via fax or e-mail:

Fax: 086 593 0006

Kindly address Road Freight and Logistics Industry Provident Fund related enquiries to: members@rflipf-sanlam.co.za Claim queries can be made via the Call Centre: Tel: 086 173 5473

The claim process:

1. All documents are received and verified by Sanlam

2. Tax directive is applied for via SARS

3. Bank verification is received

4. Payment is made

For more detailed information on claims and supporting documents required please refer to

the relevant claim form as well as the Fund flyers. Please see www.rflipfund.co.za.

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10. PENSION-BACKED HOME LOANS

The Fund offers loans for housing purposes - these are called pension-backed home loans.

The pension-backed Loan enables you to use your benefit in the fund as surety on your loan

(in terms of Section 19(5) of the Pension Funds Act). The loan can be used to purchase a

home, do renovations on your exiting home or build your dream home, as long as you or one

of your dependants live in the house and it is your primary residence.

As with any loan, the loan needs to be repaid. The loan amount actually granted depends on

the monthly repayments the member can afford and the amount the member has

accumulated in the provident fund.

Loan repayments will be done via deduction from your slip by the employer.

If the employer does not sign the agreement - you cannot access a loan from FNB.

The process:

On request an employer payroll agreement is sent and signed by the employer

(without this FNB cannot assist the members)

The application is sent to employer to sign off confirming employment

Application is sent to head office for final approval

Application is sent back to FNB to finalise

Once the payroll agreement is signed you then approach FNB to complete

application form for the home loan.

Important: Home loans need to be re-paid before you reach normal retirement age. When

you resign the total outstanding loan is deducted from your withdrawal benefit. In this way

your loan is settled in full.

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11. CONTACT DETAILS

RFLIPF Details

Phone: 086 173 5473 share call for member enquiries

Email: members@rflipf-sanlam.co.za

Fund No: 12/8/37811

Fund website: www.rflipfund.co.za

SERVICE PROVIDER DETAILS

Front Office Administrators

Toll Free line: 086 173 5473 E-mail: members@rflipf-sanlam.co.za

Back Office Administrators

Tel: (011) 544 8300 E-mail: members@rflipf-sanlam.co.za

Risk Benefits Administrators

Tel: 010 592 0951 Email: roadfreightclaims@bophelo.co.za OR members@rflipf-sanlam.co.za