IMPACT OF

RETIREMENT REFORMS

Johan BothaNBC Holdings (Pty) Ltd

OR

ProvidentFund value

as at

28/02/2015

ProvidentBenefit

as at

01/03/2015

Interest on

ProvidentBenefit

Pension Benefit(Contributions from 03/2015 +

interest)

Providentbenefit

as atRetirement date

1/3rd

Lump sum

2/3rd Monthly pension

01/03/2015 RETIREMENT

Administration charges: Creation of additional member record Administration fee structures -

One set fee, orA set fee plus a rider fee

Member communication/education: Impact of reforms Allaying fears Pension/annuity options

Lump sum Disability Benefits (PTD): From lump sum to ‘ill health retirement’

Set-up cost for Employer: Changes to pay roll system Adjustments to salary statements

From payslip to cash flow statement: Personal financial planning.

Transfer after 1 March 2015: Hybrid arrangements…??

Changes in ‘Take Home Pay’(7.5% Member contribution Provident Fund)

SALARY pm

CONTR. Pre 2015 Post 2015

THP (+)

R 5 000.00

R 375.00

R 4 625.00

R 4 625.00

R 0.00

R10 000.00

R 750.00

R 8 511.00

R 8 646.00

R 135.00

R15 000.00

R1 125.00

R12 204.00

R12 438.00

R 234.00

R20 000.00

R1 500.00

R15 579.00

R15 951.00

R 372.00

Tax saving to work for you(R100.00 pm @ 10% interest)

TERM PROCEEDS

PREMIUM RETURN

5 years R 7 717.00

R 6 000.00 R 1 717.00

10 years R20 145.00

R12 000.00 R 8 145.00

15 years R40 162.00

R18 000.00 R22 162.00

Members 55 years and older

Employer : Contribution Holiday

Consolidation of Funds

THANK YOU