The most important feature of the Defined contribution section is that the benefit you receive on retirement (or resignation) depends critically on:

• The pension saving contributions you and the Council make; and
• The investment return you earn on this money.

The total of your pension savings and the investment return you earn thereon is called your Member Credit. In the Defined Benefit Section of the Fund, the benefit you receive is a predetermined formula based on your years of contributory service and your average annual earnings.

Members that joined the Fund on or after 1 March 2002 contribute at a rate of 7.5% of pensionable salary.

Members that joined the Fund before 1 March 2002 contribute at a rate of 8.5% of pensionable salary unless they exercise an option to contribute at a rate of 7.5% of pensionable salary.

The entire member contribution is allocated for pension saving and is credited to the Member Credit

The Council contributes 18.0% of pensionable salary for each member.

At least 12.0% of the Council's contribution is allocated for pension saving (and is credited to the Member Credit) - the balance is applied for death and disability benefits and expenses of the Fund. Currently, in excess of 15% is allocated for pension saving.

When members reach age 60, the portion of the Council’s contribution that was previously paid toward risk benefits is now also allocated for pension savings!

Your normal retirement age is 65. If your conditions of employment provide for retirement beyond the age of 65, you may retire at the age stated in your employment contract.

The earliest age at which you can retire is 55 (unless the Trustees consider you to be in ill-health, in which case you may retire at any age). Your employment conditions will set out the notice period you need to give Council if you wish to retire before your normal retirement age.

Your retirement benefit is your Member Share (i.e. pension savings plus the investment return earned thereon.

You may receive up to a maximum of 1/3rd of your retirement benefit as a cash lump sum. The balance of your retirement benefit must be applied to secure a pension, either from the Fund or from an Insurer.

On resignation or dismissal you will receive your full Member Credit. This comprises your Employer contributions, your member contributions and interest.

The benefit your dependants will receive

If you die in service on or before you reach age 60, your dependants will receive a benefit equal to:

• Your Member Credit; plus
• A capital amount according to the following table

Your age at death	Additional benefit (multiple of your annual pensionable salary)
32 or less	9,00
33-35	8,00
36-38	7,00
39-41	6,25
42-44	5,75
45-47	5,25
48-50	5,00
51-53	4,00
54-56	3,00
57-60	2,50

The disability income benefit (if you become disabled before the age of 60) is only paid once you have been disabled for a period of 6 continuous months. (You will need to rely on your sick leave to "bridge" this 6-month period to the greatest extent possible.)

If, after the expiry of this 6-month period, the Insurer considers that you are unable to perform your work with Council in your current occupation, you will be entitled to a monthly income of 75% of your pensionable salary.

After a further 12 months (i.e. 18-months after you became disabled), the Insurer will re-assess your disability, but this time against a criterion of whether you are able to perform your job, or any similar job that you could do by virtue of your experience, training, education and age, with any Employer.

Only if the Insurer considers you to be disabled (according to the definition) would the benefit be paid.

The only circumstances in which you may apply for a loan against your pension is for housing purposes. The property for which your application is made must belong to either you or your spouse.

You may not utilise your pension for a personal loan.

Yes, you may contribute up to a maximum of 27.5% of the greater of your taxable income or gross remuneration, up to a limit of R350 000. This is based on both member and employer contributions combined. This is to the benefit of most members and allows members to save more towards retirement in a tax efficient manner. Currently, the combined contribution for Defined Contribution members is around 25.5% of pensionable salary (7.5% Member plus 18% Employer). If affordability allows you contribute an additional 2%, we strongly recommend that you do so. You must make arrangement with your HR department to give effect to an increased contribution.

If you retire and all documents are submitted to the Fund by the month in which you retire and provided that you have no outstanding tax returns or unresolved issues with SARS, your retirement benefit should be paid within 4 to 6 weeks following the end of the month in which you retire.

If you resign and all documents are submitted to the Fund by the month in which you resign and provided that you have no outstanding tax returns or unresolved issues with SARS, your resignation benefit should be paid within 4 to 6 weeks following the end of the month in which you retire.