the impact of the new retirement funds ... - sentinel…€¦ · sentinel on 1 march 2019 and...
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THE IMPACT OF THE NEW THE IMPACT OF THE NEW
RETIREMENT FUNDS DEFAULT RETIREMENT FUNDS DEFAULT
REGULATIONS ON CONTRIBUTORY REGULATIONS ON CONTRIBUTORY
& NON-CONTRIBUTORY MEMBERS & NON-CONTRIBUTORY MEMBERS
THE IMPACT OF THE NEW
RETIREMENT FUNDS DEFAULT
REGULATIONS ON CONTRIBUTORY
& NON-CONTRIBUTORY MEMBERS
NEWSLETTER FOR MEMBERS
BULLETINBULLETINBULLETINMARCH 2019
Your Retirement - Our Passion
Ethics Hotline 0800 000 594
Sentinel's “cradle to grave” approach, which creates seamless and costless transitioning between life stages, already provides for suitably structured default investment and annuity options. The default preservation option (currently known as interim and deferred membership), however, requires significant changes.
Ÿ a default investment strategy (Regulation 37)Ÿ default preservation and portability regulations (Regulation 38), and
These regulations are meant to improve the outcomes for members by ensuring they get good value for their savings to enable them to retire comfortably. To achieve this, member default options need to be relatively simple, cost effective and transparent and members should be assisted during the accumulation and retirement phases of their membership of a retirement fund.
Members are reminded that, although these regulations are aimed at improving retirement outcomes and flexibility is extended by options to opt out of default provisions, the responsibility to save sufficiently and act responsibly specifically during decision making events, remains yours! Sentinel will continue to inform, assist, council and advise its members, but the decisions and choices made by individual members will ultimately determine their retirement outcome.
Ÿ an annuity strategy (Regulation 39).
Sentinel Retirement Fund (Sentinel) submitted amendments to its Rules to ensure compliance with new Default Regulations to the Pension Fund Act.
The regulations require retirement funds to implement the following with effect from 1 March 2019:
o Annual Integrated Annual Reports, and
Regulatory requirements
Sentinel's Life Stage Model essentially complies with the new regulation in that it already meets the following criteria:Ÿ It is appropriate for members.
o Quarterly investment portfolio fact sheets,
Ÿ Members are adequately informed of the composition of assets and performance of investment portfolios through published:
o Monthly investment returns, o A member investment choice brochure,
o Annual member benefit statements and explanatory brochures. Ÿ Sentinel's self-administered business model ensures that costs are reasonable and
competitive.
INTRODUCTIONINTRODUCTIONINTRODUCTION
DEFAULT INVESTMENT PORTFOLIO DEFAULT INVESTMENT PORTFOLIO
(REGULATION 37)(REGULATION 37)
DEFAULT INVESTMENT PORTFOLIO
(REGULATION 37)
Sentinel currently reports “Total Direct Costs” that includes all direct investment costs (for which invoices are issued by asset managers), fund entity costs and administration costs. Indirect investment costs are implicitly included in the gross returns published as these costs are recovered by the relevant investment managers before the return (net of these costs) are declared to the Fund.
Member Investment Choice is available for members who prefer not to follow the Life Stage Model. Members are able to exercise individual choice and switch between investment portfolios daily. The three Life Stage portfolios as well a Money Market, Capital Protection and Shari'ah portfolio are available and splitting of capital is also allowed. Two switches between portfolios per calendar year is allowed at no cost and thereafter a switching fee of 0.1% of capital switched, limited to a maximum fee of R5, 000, is charged. Members who have opted out of the Life Stage have the option to return to it when they so choose.
Sentinel's Cost Recovery Methodology
Ÿ Passive and active investment options are considered and applied where appropriate in the composition of portfolios.
Ÿ Members are informed of all fees and charges that are recovered through the publication of budgeted annual costs and monthly gross and net returns earned per investment portfolio. A new industry standard has been set that has enhanced the reporting standards of investment managers and will be applied by Sentinel to further improve transparency of its total cost recovery methodology. (Please refer to the explanation below).
Ÿ No loyalty bonuses or complex fee structures apply.Ÿ Members can opt out of the default Life Stage Model and return to it thereafter. Ÿ The investment strategy is reviewed on an ongoing basis to ensure appropriateness and
compliance.
Sentinel's Member Investment Model in a Nutshell
The Life Stage Model consists of three portfolios, with different risk profiles. Accumulated retirement savings are automatically moved from one investment portfolio to the next based on the number of years remaining until Normal Retirement Age (NRA). A member who opts to follow the Life Stage Model is therefore not required to make any investment decisions. Life Stage portfolios consist of the Wealth Builder (Aggressive, up to 12 years before NRA), the Inflation Protector (Moderate, from 12 to 5 years before NRA) and the Pension Protector (Conservative, for the last 5 years before NRA) portfolios.
Sentinel's investment strategy provides members with two investment avenues:
AUTO SWITCH. 5 years from NRA
AUTO SWITCH. 12 years from NRA
Wealth Builder
InflationProtector
PensionProtector
Money Market
Capital Protector
Shari'ah
1 2
Sentinel's “cradle to grave” approach, which creates seamless and costless transitioning between life stages, already provides for suitably structured default investment and annuity options. The default preservation option (currently known as interim and deferred membership), however, requires significant changes.
Ÿ a default investment strategy (Regulation 37)Ÿ default preservation and portability regulations (Regulation 38), and
These regulations are meant to improve the outcomes for members by ensuring they get good value for their savings to enable them to retire comfortably. To achieve this, member default options need to be relatively simple, cost effective and transparent and members should be assisted during the accumulation and retirement phases of their membership of a retirement fund.
Members are reminded that, although these regulations are aimed at improving retirement outcomes and flexibility is extended by options to opt out of default provisions, the responsibility to save sufficiently and act responsibly specifically during decision making events, remains yours! Sentinel will continue to inform, assist, council and advise its members, but the decisions and choices made by individual members will ultimately determine their retirement outcome.
Ÿ an annuity strategy (Regulation 39).
Sentinel Retirement Fund (Sentinel) submitted amendments to its Rules to ensure compliance with new Default Regulations to the Pension Fund Act.
The regulations require retirement funds to implement the following with effect from 1 March 2019:
o Annual Integrated Annual Reports, and
Regulatory requirements
Sentinel's Life Stage Model essentially complies with the new regulation in that it already meets the following criteria:Ÿ It is appropriate for members.
o Quarterly investment portfolio fact sheets,
Ÿ Members are adequately informed of the composition of assets and performance of investment portfolios through published:
o Monthly investment returns, o A member investment choice brochure,
o Annual member benefit statements and explanatory brochures. Ÿ Sentinel's self-administered business model ensures that costs are reasonable and
competitive.
INTRODUCTIONINTRODUCTIONINTRODUCTION
DEFAULT INVESTMENT PORTFOLIO DEFAULT INVESTMENT PORTFOLIO
(REGULATION 37)(REGULATION 37)
DEFAULT INVESTMENT PORTFOLIO
(REGULATION 37)
Sentinel currently reports “Total Direct Costs” that includes all direct investment costs (for which invoices are issued by asset managers), fund entity costs and administration costs. Indirect investment costs are implicitly included in the gross returns published as these costs are recovered by the relevant investment managers before the return (net of these costs) are declared to the Fund.
Member Investment Choice is available for members who prefer not to follow the Life Stage Model. Members are able to exercise individual choice and switch between investment portfolios daily. The three Life Stage portfolios as well a Money Market, Capital Protection and Shari'ah portfolio are available and splitting of capital is also allowed. Two switches between portfolios per calendar year is allowed at no cost and thereafter a switching fee of 0.1% of capital switched, limited to a maximum fee of R5, 000, is charged. Members who have opted out of the Life Stage have the option to return to it when they so choose.
Sentinel's Cost Recovery Methodology
Ÿ Passive and active investment options are considered and applied where appropriate in the composition of portfolios.
Ÿ Members are informed of all fees and charges that are recovered through the publication of budgeted annual costs and monthly gross and net returns earned per investment portfolio. A new industry standard has been set that has enhanced the reporting standards of investment managers and will be applied by Sentinel to further improve transparency of its total cost recovery methodology. (Please refer to the explanation below).
Ÿ No loyalty bonuses or complex fee structures apply.Ÿ Members can opt out of the default Life Stage Model and return to it thereafter. Ÿ The investment strategy is reviewed on an ongoing basis to ensure appropriateness and
compliance.
Sentinel's Member Investment Model in a Nutshell
The Life Stage Model consists of three portfolios, with different risk profiles. Accumulated retirement savings are automatically moved from one investment portfolio to the next based on the number of years remaining until Normal Retirement Age (NRA). A member who opts to follow the Life Stage Model is therefore not required to make any investment decisions. Life Stage portfolios consist of the Wealth Builder (Aggressive, up to 12 years before NRA), the Inflation Protector (Moderate, from 12 to 5 years before NRA) and the Pension Protector (Conservative, for the last 5 years before NRA) portfolios.
Sentinel's investment strategy provides members with two investment avenues:
AUTO SWITCH. 5 years from NRA
AUTO SWITCH. 12 years from NRA
Wealth Builder
InflationProtector
PensionProtector
Money Market
Capital Protector
Shari'ah
1 2
The following illustration explains the enhanced methodology that will be implemented by Sentinel on 1 March 2019 and highlights the changes:
Ÿ Other costs and fees, including legal & consulting fees, audit fees, Board fees, FSCA levies, insurances, valuation charges and annual report costs.
In future, cost disclosure will comprise of four components (none of these items are additional costs to Fund members or pensioners):
The new industry standard enforced enhanced reporting standards for asset managers and will enhance Sentinel's ability to publish fully transparent costs. Fortunately, it will also enable members to accurately compare costs in the industry as all retirement funds will be obliged to comply with this new standard. Please note that some costs are reported with a quarter lag. In these instances reliable estimates may be used to allow for monthly reporting.
Ÿ Investment management fees, including all charges of underlying investment funds and transaction costs.
Ÿ Investment advice fees, including consulting charges not included in management charges.
NB: Portfolio applied in this example: Wealth Builder returns and costs for the year ended on 30 June 2018
Ÿ Administration costs, which in Sentinel's self-administered model will include personnel, information technology and operational costs. These costs include member and pensioner communication, counselling and advice.
Members are reminded that the enhanced methodology will improve transparency and that it will have no impact on the Net Returns earned by and as previously communicated to members.
Detail
Gross Return
Direct costs
Net Return
Detail
Gross Return
Total Charges
Net Return
%
10.98%
0.52%
10.46%
%
11.85%
1.39%
10.46%
Notes
Net of indirect investment cost
Includes:
0.34% direct cost
0.18% admin cost
Earned by member
Notes
Before all costs
Investment charges
Advice charges
Admin charges
Other charges
1.21%
0.00%
0.16%
0.02%
All direct & indirect charges
Earned by member, reflects zero impact compared to the old methodology
Current Disclosure Method New Disclosure Method
DEFAULT PRESERVATION & PORTABILITY DEFAULT PRESERVATION & PORTABILITY
(REGULATION 38)(REGULATION 38)
DEFAULT PRESERVATION & PORTABILITY
(REGULATION 38)
Regulatory requirements
Preservation means a member's ability to protect accumulated retirement savings when his/her active and contributory membership ceases as a result of him/her leaving the service of an employer before he/she qualifies and wants to retire.
Although Sentinel has provided its members with preservation options in all the previous structures (MEPF, MOPF and Sentinel Mining Industry Retirement Fund) which eventually evolved into the formation of Sentinel Retirement Fund, its current offering will require significant changes.
The current preservation option comprises a 24-month Interim Membership period following the date on which active & contributory membership ceases. Interim members have the option to extend preservation in the Fund by exercising an option to become non-contributory (deferred) members within the 24-month period, failing which their benefits will become unclaimed after the 24-month period has expired.
Sentinel's Membership Categories & Options in a Nutshell
The following table explains the new paid-up membership provisions that will apply from 1 March 2019. Comparisons with the current dispensation have specifically been excluded to eliminate confusion.
Although this dispensation complied with all current legislation and regulations, it has been experienced as confusing by most members.
Fortunately, the new regulations promote flexibility beyond the conditions of the current offering and will improve decision-making.
3
Topic
Active & Contributing Membership
Membership change trigger
Membership category
Description
Commences when a participating employer employs an employee who is eligible for membership of the Fund in terms of his/her Conditions of Employment. Transfer-in of accumulated savings in previous fund is allowed.
A member statement and a reminder that accumulated savings held in other funds (excluding retirement annuity funds) can be transferred-in will be issued to new members shortly after joining Sentinel. Member Benefit Statements will follow annually thereafter.
Change in membership occurs when the Fund is notified that:
Ÿ a member has left the service of the employer who facilitated membership of the Fund, either due to resignation, dismissal, retirement, death or disability, or
Ÿ a member's Conditions of Employment has changed, resulting in compulsory membership of another approved retirement fund.
Member status will automatically change to Paid-up membership until a decision is made and an option exercised by the member.
4
The following illustration explains the enhanced methodology that will be implemented by Sentinel on 1 March 2019 and highlights the changes:
Ÿ Other costs and fees, including legal & consulting fees, audit fees, Board fees, FSCA levies, insurances, valuation charges and annual report costs.
In future, cost disclosure will comprise of four components (none of these items are additional costs to Fund members or pensioners):
The new industry standard enforced enhanced reporting standards for asset managers and will enhance Sentinel's ability to publish fully transparent costs. Fortunately, it will also enable members to accurately compare costs in the industry as all retirement funds will be obliged to comply with this new standard. Please note that some costs are reported with a quarter lag. In these instances reliable estimates may be used to allow for monthly reporting.
Ÿ Investment management fees, including all charges of underlying investment funds and transaction costs.
Ÿ Investment advice fees, including consulting charges not included in management charges.
NB: Portfolio applied in this example: Wealth Builder returns and costs for the year ended on 30 June 2018
Ÿ Administration costs, which in Sentinel's self-administered model will include personnel, information technology and operational costs. These costs include member and pensioner communication, counselling and advice.
Members are reminded that the enhanced methodology will improve transparency and that it will have no impact on the Net Returns earned by and as previously communicated to members.
Detail
Gross Return
Direct costs
Net Return
Detail
Gross Return
Total Charges
Net Return
%
10.98%
0.52%
10.46%
%
11.85%
1.39%
10.46%
Notes
Net of indirect investment cost
Includes:
0.34% direct cost
0.18% admin cost
Earned by member
Notes
Before all costs
Investment charges
Advice charges
Admin charges
Other charges
1.21%
0.00%
0.16%
0.02%
All direct & indirect charges
Earned by member, reflects zero impact compared to the old methodology
Current Disclosure Method New Disclosure Method
DEFAULT PRESERVATION & PORTABILITY DEFAULT PRESERVATION & PORTABILITY
(REGULATION 38)(REGULATION 38)
DEFAULT PRESERVATION & PORTABILITY
(REGULATION 38)
Regulatory requirements
Preservation means a member's ability to protect accumulated retirement savings when his/her active and contributory membership ceases as a result of him/her leaving the service of an employer before he/she qualifies and wants to retire.
Although Sentinel has provided its members with preservation options in all the previous structures (MEPF, MOPF and Sentinel Mining Industry Retirement Fund) which eventually evolved into the formation of Sentinel Retirement Fund, its current offering will require significant changes.
The current preservation option comprises a 24-month Interim Membership period following the date on which active & contributory membership ceases. Interim members have the option to extend preservation in the Fund by exercising an option to become non-contributory (deferred) members within the 24-month period, failing which their benefits will become unclaimed after the 24-month period has expired.
Sentinel's Membership Categories & Options in a Nutshell
The following table explains the new paid-up membership provisions that will apply from 1 March 2019. Comparisons with the current dispensation have specifically been excluded to eliminate confusion.
Although this dispensation complied with all current legislation and regulations, it has been experienced as confusing by most members.
Fortunately, the new regulations promote flexibility beyond the conditions of the current offering and will improve decision-making.
3
Topic
Active & Contributing Membership
Membership change trigger
Membership category
Description
Commences when a participating employer employs an employee who is eligible for membership of the Fund in terms of his/her Conditions of Employment. Transfer-in of accumulated savings in previous fund is allowed.
A member statement and a reminder that accumulated savings held in other funds (excluding retirement annuity funds) can be transferred-in will be issued to new members shortly after joining Sentinel. Member Benefit Statements will follow annually thereafter.
Change in membership occurs when the Fund is notified that:
Ÿ a member has left the service of the employer who facilitated membership of the Fund, either due to resignation, dismissal, retirement, death or disability, or
Ÿ a member's Conditions of Employment has changed, resulting in compulsory membership of another approved retirement fund.
Member status will automatically change to Paid-up membership until a decision is made and an option exercised by the member.
4
o Annual pensioner information sessions.
Regulatory requirements
Sentinel's Pension Income Choice model essentially complies with the new regulation in that it already meets the following criteria:Ÿ It is appropriate for members who retire and beneficiaries of deceased members.Ÿ All pensioners, including flexible annuitants, are adequately informed of the composition of
assets and performance of investment portfolios through published:o Quarterly portfolio fact sheets, o Monthly investment returns, o Annual Integrated Annual Reports and
DEFAULT ANNUITY STRATEGY DEFAULT ANNUITY STRATEGY
(REGULATION 39)(REGULATION 39)
DEFAULT ANNUITY STRATEGY
(REGULATION 39)
PENSION INCOME CHOICE OPTIONS
TIER 1 Also, the Default Option
TIER 3 OPTIONTIER 2 OPTION
MULTIPLE PENSION OPTIONS
AVAILABLE ONLY ONCE A TIER 1 PENSION OF R12,500 pm HAS BEEN PROVIDED FOR
COMPULSORY COMPONENT,WITH BUY-UP OPTIONS
GUARANTEED PENSION IncludesŸ Lifelong guarantee for
pensioner and spouse(s)Ÿ 75% or 100% Spouse
pension optionŸ 5-, 10-, 15-, 20- or 25-year
term certain optionsŸ With-profit increases
Ÿ Lifelong guarantee for pensioner and spouse(s)
2nd GUARANTEED PENSION Includes:
Ÿ 5-, 10-, 15-, 20- or 25-year term certain options
Ÿ With-profit increases
Ÿ 0%, 25%, 50%, 75% or 100% Spouse pension option
Includes:FLEXIBLE PENSION
Ÿ Self-ManagedŸ Monthly income drawdown Ÿ Investment choiceŸ Option to convert to
guaranteed pension
5 6
Topic
Actions taken when a change in membership occurs
Available options
Members services
Existing Interim & Deferred members
Description
No investment disturbance will occur in the change-over as the member's Fund Credit (retirement savings) will remain in the portfolio in which it was invested before the change in membership occurred. Paid-up members can exercise individual investment choice.
No contributions can be made and risk contributions may not be collected, all benefits are defined in the Rules and the cost recovery methodology remains the same as it applies to active members.
A Paid-up member certificate will be issued shortly after of leaving the service of the employer. In the event of re-employment by another employer that participate in Sentinel, separate member records will be maintained until an option is exercised by the member.
Ÿ Withdrawal benefit before NRA is reached,
Ÿ Transfer benefits to another approved fund before age 70,
Ÿ Retire in Sentinel on a date determined by the member, between 10 years before NRA (earliest) and age 70 (latest), or
Ÿ Decide to remain a Paid-up member, in which case the option to withdraw before NRA or transfer-out before age 70 will be retained, and the following conditions will apply:
- Additional voluntary contributions may NOT be made, and
- Retirement (annuitisation) will become compulsory at NRA or a chosen date thereafter, either in Sentinel or any other approved fund that the member transfers to.
Benefits will become unclaimed if a valid option is not exercised before the member reaches age 70.
Sentinel's comprehensive Advisory Service communicates, informs, councils and advises members. Please find contact details elsewhere in this brochure or on the website at www.sentinel.za.com
To eliminate confusion and to extend improved flexibility to existing Interim and Deferred Members, their records will be converted to Paid-up membership status on 1 March 2019.
Retirees may, within prescribed parameters, provide for multiple pensions in Sentinel's Pension Income Choice product. Options include “with profit” guaranteed pensions with capital protection and spouse continuation options as well as Flexible Pensions (living annuities). Investment portfolios and options offered to members are extended to Flexible Pensioners and create a seamless and costless transition into retirement.
Sentinel has a remarkable increase history on its guaranteed pensions in that the purchasing power of pensions in payment have been properly maintained in relation to Sentinel's stated objective of at least 80% of CPI, over the long term.
The following illustration briefly explains this product offering, after lump sum commutation options have been exercised:
Ÿ Members and pensioners have access to counselling and advice on any Fund related matter, throughout their relationship with the Fund.
Ÿ Sentinel's self-administered business model ensures that costs are reasonable and competitive.
Sentinel's Pension Income Choice Model in a Nutshell
Ÿ Pensioners are informed of all fees and charges through the publication of budgeted annual costs and monthly gross and net returns. The new industry standard that has been set enhanced the reporting standards of asset managers and will be applied by Sentinel to further improve transparency of its total cost recovery policy. (Please refer to the explanation above).
Members who have left the service of their employer may elect to retire at any time between the date on which they are within 10 years from NRA (being the earliest retirement date) and any chosen later date, even if this date extends beyond NRA and is prior to them reaching age 70. In addition, spouses of deceased members and approved disability retirees are compelled to annuitise (convert capital in favour of a regular monthly pension) within Sentinel.
Ÿ The appropriateness of this benefit offering is evaluated on an ongoing basis.
o Annual pensioner information sessions.
Regulatory requirements
Sentinel's Pension Income Choice model essentially complies with the new regulation in that it already meets the following criteria:Ÿ It is appropriate for members who retire and beneficiaries of deceased members.Ÿ All pensioners, including flexible annuitants, are adequately informed of the composition of
assets and performance of investment portfolios through published:o Quarterly portfolio fact sheets, o Monthly investment returns, o Annual Integrated Annual Reports and
DEFAULT ANNUITY STRATEGY DEFAULT ANNUITY STRATEGY
(REGULATION 39)(REGULATION 39)
DEFAULT ANNUITY STRATEGY
(REGULATION 39)
PENSION INCOME CHOICE OPTIONS
TIER 1 Also, the Default Option
TIER 3 OPTIONTIER 2 OPTION
MULTIPLE PENSION OPTIONS
AVAILABLE ONLY ONCE A TIER 1 PENSION OF R12,500 pm HAS BEEN PROVIDED FOR
COMPULSORY COMPONENT,WITH BUY-UP OPTIONS
GUARANTEED PENSION IncludesŸ Lifelong guarantee for
pensioner and spouse(s)Ÿ 75% or 100% Spouse
pension optionŸ 5-, 10-, 15-, 20- or 25-year
term certain optionsŸ With-profit increases
Ÿ Lifelong guarantee for pensioner and spouse(s)
2nd GUARANTEED PENSION Includes:
Ÿ 5-, 10-, 15-, 20- or 25-year term certain options
Ÿ With-profit increases
Ÿ 0%, 25%, 50%, 75% or 100% Spouse pension option
Includes:FLEXIBLE PENSION
Ÿ Self-ManagedŸ Monthly income drawdown Ÿ Investment choiceŸ Option to convert to
guaranteed pension
5 6
Topic
Actions taken when a change in membership occurs
Available options
Members services
Existing Interim & Deferred members
Description
No investment disturbance will occur in the change-over as the member's Fund Credit (retirement savings) will remain in the portfolio in which it was invested before the change in membership occurred. Paid-up members can exercise individual investment choice.
No contributions can be made and risk contributions may not be collected, all benefits are defined in the Rules and the cost recovery methodology remains the same as it applies to active members.
A Paid-up member certificate will be issued shortly after of leaving the service of the employer. In the event of re-employment by another employer that participate in Sentinel, separate member records will be maintained until an option is exercised by the member.
Ÿ Withdrawal benefit before NRA is reached,
Ÿ Transfer benefits to another approved fund before age 70,
Ÿ Retire in Sentinel on a date determined by the member, between 10 years before NRA (earliest) and age 70 (latest), or
Ÿ Decide to remain a Paid-up member, in which case the option to withdraw before NRA or transfer-out before age 70 will be retained, and the following conditions will apply:
- Additional voluntary contributions may NOT be made, and
- Retirement (annuitisation) will become compulsory at NRA or a chosen date thereafter, either in Sentinel or any other approved fund that the member transfers to.
Benefits will become unclaimed if a valid option is not exercised before the member reaches age 70.
Sentinel's comprehensive Advisory Service communicates, informs, councils and advises members. Please find contact details elsewhere in this brochure or on the website at www.sentinel.za.com
To eliminate confusion and to extend improved flexibility to existing Interim and Deferred Members, their records will be converted to Paid-up membership status on 1 March 2019.
Retirees may, within prescribed parameters, provide for multiple pensions in Sentinel's Pension Income Choice product. Options include “with profit” guaranteed pensions with capital protection and spouse continuation options as well as Flexible Pensions (living annuities). Investment portfolios and options offered to members are extended to Flexible Pensioners and create a seamless and costless transition into retirement.
Sentinel has a remarkable increase history on its guaranteed pensions in that the purchasing power of pensions in payment have been properly maintained in relation to Sentinel's stated objective of at least 80% of CPI, over the long term.
The following illustration briefly explains this product offering, after lump sum commutation options have been exercised:
Ÿ Members and pensioners have access to counselling and advice on any Fund related matter, throughout their relationship with the Fund.
Ÿ Sentinel's self-administered business model ensures that costs are reasonable and competitive.
Sentinel's Pension Income Choice Model in a Nutshell
Ÿ Pensioners are informed of all fees and charges through the publication of budgeted annual costs and monthly gross and net returns. The new industry standard that has been set enhanced the reporting standards of asset managers and will be applied by Sentinel to further improve transparency of its total cost recovery policy. (Please refer to the explanation above).
Members who have left the service of their employer may elect to retire at any time between the date on which they are within 10 years from NRA (being the earliest retirement date) and any chosen later date, even if this date extends beyond NRA and is prior to them reaching age 70. In addition, spouses of deceased members and approved disability retirees are compelled to annuitise (convert capital in favour of a regular monthly pension) within Sentinel.
Ÿ The appropriateness of this benefit offering is evaluated on an ongoing basis.
7
Members are urged to read and understand this information and to contact Sentinel if any further information or clarity is required. Participants are also encouraged to contact the Fund should they require any information, guidance, counselling or advice regarding their Fund affairs.
Reminder to all members: If you have not already registered for direct access to your personal account through Sentinel's secure web portal, please do so without further delay as this will also enable us to communicate with you through electronic channels that eliminates the risk of not receiving communication timeously.
CONCLUSIONCONCLUSIONCONCLUSION
Sentinel’s Contact DetailsSentinel’s Contact DetailsSentinel’s Contact Details
Client Service Centres: Client Service Centres: Client Service Centres:
Sentinel Retirement Fund • Reg No 12/8/1215
Sentinel House • 1 Sunnyside Drive • Sunnyside Park • PARKTOWN 2193
P O Box 61172 • MARSHALLTOWN 2107 • Johannesburg • South Africa
Tel (27)(11) 481-8000 • Fax (27)(11) 481-8111
[email protected] • www.sentinel.za.com
WitbankWCMAS Building Corner OR Tambo
and Susanna streetsEmalahleni (Witbank)
Tel (013)656-4214 Fax (013)656-1693
WelkomShop 24The Strip
314 Stateway
Tel (057)352-2905/6 Fax (057)352-2952
Klerksdorp54 Buffeldoring Street
Wilkoppies
Tel (018)468-7309 Fax (011)481-8111
CarletonvilleS Buys Office Park
Shop no. 10Corner Kaolin & Radium streets
Tel (018)786-1118/9 Fax (018)786-1114
Ethics Hotline 0800 000 594