Deferred members are former Unilever employees who have opted to leave their funds invested in the Unilever SA Pension Fund.

DC DEFERRED MEMBERS

How your Pension Fund works

INTRODUCTION

As a Defined Contribution Pension Fund member, your retirement benefits depend on the contributions you and Unilever have made 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.

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.

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

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.

If you withdraw before you retire

TRANSFER

Transferring the Benefit to a New Employer’s Fund

  • Transfers to a pension fund or 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.

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.

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.

TAKING THE BENEFIT IN CASH (NOT A WISE CHOICE)

table-1

  • 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.

When you reach retirement age

RETIREMENT

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

CHOICES AT RETIREMENT

There are two options that can be chosen upon retirement.

The choice is whether to buy a pension at Unilever SA Pension Fund or to buy a pension 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 DEFERRED MEMBERS

How your Pensions Fund works

INTRODUCTION

As a Defined Benefit Pension Fund member, your deferred pension is calculated at date of termination of service using your pensionable salary, service and age.

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 withdraw 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 as per tax table overleaf.

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

When you reach retirement age

On reaching retirement age, you shall be paid the deferred benefit as a retirement pension with the option of commuting up to one-third of the pension as a lump sum.