Current members are permanent employees that are currently employed by Unilever and contributing to the Unilever SA Pension Fund.

DC CURRENT MEMBERS

How your Pension Fund works

INTRODUCTION

As a Defined Contribution Pension Fund member, your retirement benefits depend on the contributions you and Unilever make to the Fund, any additional contributions and the investment earnings thereon. The monthly pension may be drawn from the Unilever SA Pension Fund or an external insurer.

YOU PAY A CERTAIN PERCENTAGE TO YOUR FUND

You contribute 7.5% of your pensionable pay to the Fund each month. Your annual pensionable pay includes your 13th cheque. Unilever contributes 12% percent of the pensionable pay to the Fund, matching your monthly 7.5% contribution towards your retirement with the remaining of 4.5% allocated to risk benefit cover for death and disability, and administration costs.

YOUR FUND PROVIDES TOOLS TO HELP YOU BUILD AN ADEQUATE RETIREMENT PENSION

It is in your best interests to make use of the tools and guidelines the Unilever SA Pension Fund provides you with in order to ensure you achieve an adequate retirement pension.

Additional Contributions

From 1 March 2016 contributions made by the employer will be included in the income of the member as a fringe benefit and will qualify for deduction up to 27.5% of remuneration or taxable income whichever is the greater and R350,000 whichever is the lesser.

If you have retirement funds to transfer in

Employees wishing to consolidate their pension fund benefits in the Unilever SA Pension Fund may request their previous employer’s pension fund to transfer the benefits into the Unilever SA Pension fund.

Contact Lydia Gibson in this regard:
031 570 2845 / Lydia.gibson@unilever.com

If you leave before you retire?

WITHDRAWAL BENEFIT OPTIONS

Option 1: Remain invested in the Unilever SA Pension Fund / Deferred benefit

  • Your funds continue to accrue portfolio investment returns.
  • All accumulated savings may be preserved until you are ready to retire at any time on or after age 50.
  • The funds may be transferred in from other retirement fund sources should you wish to consolidate funds for retirement.
  • The funds may be transferred out at any time to a new employer’s fund or to a retirement annuity.
  • A minimal and cost-effective fee of R47 a month is charged to administer your funds.

Option 2: Transfer

2.1 Transferring the Benefit to a New Employer’s Fund

  • Transfers to a pension fund are not taxable. The benefit transferred to a provident fund will be subjected to income tax.
  • You will not be able to access your benefit until you leave the new fund.

2.2 Transferring the Benefit to a Preservation Fund

  • On transfer to a preservation fund, no tax is payable.
  • In cases of emergency, you have access to your benefit as you may have one partial or full withdrawal from the preservation fund. This withdrawal benefit will be taxed.
  • If a member withdraws from a Preservation Fund, withdrawal tax is applicable as per the tax table below.

2.3 Transferring the Benefit to a Retirement Annuity

  • On transfer to the Retirement Annuity, no tax is payable.
  • Monthly contributions may be made towards the Retirement Annuity.
  • You do not have access to your benefit until you reach the minimum retirement age of 55.

Option 3: Take the benefit in cash (not a wise choice)

  • The first R25,000 (per life time) is tax-free. The balance is taxed according to the following tax table:
    table-1
  • A tax directive must be obtained for all withdrawal benefits regardless of level of earnings.
  • The tax free portion of R25,000 applies once per life time.
  • The tax free portion on Retirement (R500,000) is reduced by the tax free portion taken on withdrawal.
  • Additional tax relief is provided if the withdrawal is due to retrenchment.

Few people are able to retire financially independent. Spending the money on short-term needs, or paying off debt, will result in financial hardship during retirement as your retirement savings are reduced.

Do not take Cash!
Present Planning = Future Fun

Beneficiary Nomination Form

Your dependents and those persons who are not dependents, but who are nominated by you, are taken into account by the Trustees when they decide to whom lump sum benefits are to be paid on your death.

It is therefore imperative that your Beneficiary Nomination Form is kept up to date.

In case of death in service

graphic-1

Risk Benefit Multiples

 

 

 

 

 

 

 

The multiples may change from time to time, in line with the risk benefit experience of the Fund.

If you are unable to work

FULL DISABILITY 

Full disability is your total inability to perform your own occupation and any other occupation for which you are suited or could become suited subject to the recommendation of the Company and agreement with the Trustees on the advice of a medical advisor appointed by the Company.

WHAT ARE THE FULL DISABILITY BENEFITS

The value of your accumulated fund balance plus a lump sum calculated as a multiple of annual pensionable pay as per the table below:

graphic-1 Risk Benefit Multiples

 

 

 

 

 

 

The multiples may change from time to time, in line with the risk benefit experience of the Fund.

 

PARTIAL DISABILITY

If you do not qualify for this benefit because you are not totally and/or permanently disabled from following your own or a similar occupation, a lower benefit will be payable, at the discretion of the Trustees.

What portfolio should you be invested in?

Please refer to the detailed investment guide to assist you with choosing the correct portfolio for your goals. You will find the Investment Guide under the Guides and Reports section.

When you reach retirement age

RETIREMENT

You may retire at any time from your 50th birthday.

EARLY RETIREMENT 

If you retire before the age of 65 it is deemed early retirement. Early retirements are classified into either Voluntary Retirements or Company Initiated Early retirements.

Voluntary retirement is when you decide to retire on your own accord.

The Company might initiate an early retirement whereby they offer you to choose one of two options:

  • Option 1 Severance Payment by the Company (not to exceed Balance of Pay)
  • Option 2 Pension benefit calculation payable the Company as Severance Pay (not to exceed Balance of Pay)

NORMAL RETIREMENT

The normal retirement age is 65.

CHOICES AT RETIREMENT

There are two choices available to members with regard to pension purchase.

Members can buy a pension In-House at Unilever SA Pension Fund or with an external insurer. The In-House option is very cost effective. It is imperative that the long term effect of the costs is examined before making a decision on the pension provider.

REMAINING INVESTED IN THE UNILEVER SA PENSION FUND

You may encash up to one-third of your accumulated Pension value upon retirement.
Any applicable tax will be deducted in line with SARS tax tables.
The balance of the accumulated Pension value can be used to buy a monthly pension in the With-Profit annuity or a combination of a minimum With-Profit annuity with the remaining funds invested in a Living Annuity. Please read further detail in the Getting Ready for Retirement Guide.

DB CURRENT MEMBERS

How your Pensions Fund works

INTRODUCTION

As a Defined Benefit Pension Fund member, your monthly pension on retirement is calculated using your pensionable salary, service and age at retirement.

YOU PAY A CERTAIN PERCENTAGE TO YOUR FUND

You contribute 7.5% of your pensionable pay to the Fund each month.
Your pensionable pay includes your 13th cheque.
Unilever contributes an amount to pay the benefits that is calculated by the actuary.

YOUR FUND PROVIDES TOOLS TO HELP YOU BUILD AN ADEQUATE RETIREMENT PENSION

It is in your best interests to make use of the tools and guidelines the Unilever SA Pension Fund provides you with for you to have an adequate retirement pension.

Additional Contributions

From 1 March 2016 contributions made by the employer will be included in the income of the member as a fringe benefit and will qualify for deduction up to 27.5% of remuneration or taxable income (whichever is the greater) and R350,000 whichever is the lesser.

The deemed employer contribution for DB members is 16.96% (12% for DC members). Together with your contribution of 7.5% the total contribution is 24.46%.

This limits your additional voluntary contribution to 3.04% of remuneration or taxable income before the 27.5% allowance is reached.

Contributions above 27.5% or over the R350,000 cap will not be allowed as a deduction for tax purposes.

If you have retirement funds to transfer in

Employees wishing to consolidate their pension fund benefits in the Unilever SA Pension Fund may request their previous employer’s pension fund to transfer the benefits into the Unilever SA Pension fund.

Contact Lydia Gibson in this regard:
031 570 2845 / Lydia.gibson@unilever.com

If you leave before you retire

WITHDRAWAL BENEFIT OPTIONS

Option 1: Remain invested in the Unilever SA Pension Fund / Deferred benefit

  • Your pension continue to accrue returns in the form of DB Pensioner increases.
  • Your pension may be preserved until you are ready to retire at any time on or after age 50.
  • The funds may be transferred in from other retirement fund sources should you wish to consolidate funds for retirement.
  • Your funds may be transferred out at any time to a new employer’s fund or to a retirement annuity.

Option 2: Transfer

2.1. Transferring the Benefit to a New Employer’s Fund

  • Transfers to a pension fund are not taxable.
  • You will not be able to access your benefit until you leave the new fund.

2.2. Transferring the Benefit to a Preservation Fund

  • On transfer to a preservation fund, no tax is payable.
  • In cases of emergency, you have access to your benefit as you may have one partial or full withdrawal from the preservation fund. This withdrawal benefit will be taxed.
  • If a member withdraws from a Preservation Fund, withdrawal tax is applicable as per the tax table below.

2.3. Transferring the Benefit to a Retirement Annuity

  • On transfer to the Retirement Annuity, no tax is payable.
  • Monthly contributions may be made towards the Retirement Annuity.
  • You do not have access to your benefit until you reach the minimum retirement age of 55.

Option 3: Take the benefit in cash (not a wise choice)

  • The first R25,000 (per life time) is tax-free. The balance is taxed according to the following tax table:table-1
  • A tax directive must be obtained for all withdrawal benefits regardless of level of earnings.
  • The tax free portion of R25,000 applies once per life time.
  • The tax free portion on Retirement (R500,000) is reduced by the tax free portion taken on withdrawal.
  • Additional tax relief is provided if the withdrawal is due to retrenchment.

Few people are able to retire financially independent. Spending the money on short-term needs, or paying off debt will result in financial hardship during retirement as your retirement savings are reduced.

Do not take cash!
Present planning = future fun

In case of death in service

A lump sum equal to twice the annual pensionable pay at death becomes payable.

Spouse and child pensions are calculated and payable in terms of the Fund rules.

Beneficiary Nomination Form

Your dependents and those persons who are not dependents but who are nominated by you, are taken into account by the Trustees when they decide in what shares lump sum benefits are paid on your death.

It is therefore important that your Beneficiary Nomination Form is kept up to date.

If you are unable to work

FULL DISABILITY 

Full disability is your total inability to perform your own occupation and any other occupation for which you are suited based on the advice of the company medical advisor, agreement by the Company and agreement with the Trustees.

The benefits are calculated in line with the Rules of the Fund.

PARTIAL DISABILITY

If you are only partially, permanently disabled from following your own or a similar occupation, a lower benefit will be payable.

The benefits are calculated in line with the Rules of the Fund.

When you reach retirement age

On reaching retirement age, you shall be paid a retirement pension calculated using your pensionable salary, service and age at retirement.