RAND WATER PROVIDENT FUND ANNUAL REPORT 2022-2023

Member Communication

Communication to members

The objective of a retirement fund is to provide members with an adequate retirement benefit i.e. replacement ratio or retirement outcome, and to provide benefits to dependents on the death of a member. The Several factors that impact members’ replacement ratios (RR’s) are communicated to members at appropriate stages in their lifecycle, so that they can plan appropriately for their retirement.

Contribution years ......................... Normal retirement age

Salary progression ......................... Pensionable salary

Non preservation

Cost ......................... Risk premium ......................... Fund expenses

Annuity factors

Factors Impacting RR Factors Impacting RR

=

R

Investment returns

Contributions

Current RR

Target RR

Benefit Statements

• Trustees have resolved to give members updated, personalized information relating to their own accumulated fund value. • To advise members to update the nomination of beneficiary form when sending out the benefit statement. • To assist members to complete nomination of beneficiary forms by workshops / workplace meetings / annual campaign for members to update forms. • The benefit statements are accompanied by information that focuses on the RR as prescribed in PF 86. Benefit statements contain an annual summary of members pension savings. It tells members about the savings and assists with making decisions about their retirement. KEY INFORMATION ON MEMBER BENEFITS STATEMENT: Benefit Statement

CONTRIBUTIONS

INVESTMENT GROWTH

RISK PREMIUMS

FUND CREDIT

ADMIN FEE

RISK BENEFITS

Rand Water Provident Fund Annual Report | 2022-2023 25