01-Aug-19

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Arrive, enjoy refreshments, chat to old friends

Presentation commences @ 10:00

Sentinel Retirement Fund’s Standing

Interesting Pensioner Statistics

Sentinel Investments

Up-To-Date Pension Increase Indicators

Pensioner Benefits in a Nutshell

Bits & Tips

Revert back to A above .……

A

B

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3

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Asset

Ranking

Member

Ranking

Fund Name Assets

(R‘m)

Membership

1 31 ESKOM PENSION AND PROVIDENT FUND 133 343 88 017

2 2 SOUTH AFRICAN RETIREMENT ANNUITY FUND 112 151 1 407 129

3 3 CENTRAL RETIREMENT ANNUITY FUND 104 584 842 166

4 33 SENTINEL RETIREMENT FUND 82 490 81 243

5 5 LIFESTYLE RETIREMENT ANNUITY FUND 76 207 631 950

6 1 ENGINEERING INDUSTRIES PENSION FUND 72 443 1 573 006

7 6 MOMENTUM RETIREMENT ANNUITY FUND 53 795 409 542

8 8 OLD MUTUAL SUPERFUND PROVIDENT FUND 50 219 277 750

9 73 SASOL PENSION FUND 48 876 27 540

10 19 OLD MUTUAL SUPERFUND PENSION FUND 48 490 140 456

11 4 METAL INDUSTRIES PROVIDENT FUND 42 569 832 723

12 16 ALEXANDER FORBES RETIREMENT FUND (PROVIDENT SECTION) 39 285 185 505

13 27 PROFESSIONAL PROVIDENT SOCIETY RETIREMENT ANNUITY FUND 39 235 99 457

14 75 TELKOM RETIREMENT FUND 38 981 26 385

15 54 STANDARD BANK GROUP RETIREMENT FUND 36 701 38 720

16 53 ABSA PENSION FUND 31 619 40 980

17 18 MINEWORKERS PROVIDENT FUND 30 587 175 620

18 28 ALLAN GRAY RETIREMENT ANNUITY FUND 30 295 96 933

19 54 FIRST RAND RETIREMENT FUND 28 991 39 568

20 32 ALEXANDER FORBES RETIREMENT FUND (PENSION SECTION) 25 657 84 991

Source: 2017 Registrar of Pension Funds Annual Report

Age

Group

Primary

Pensioner

Pensioner

Spouses

Member

Spouses

Total %

- 60 2,924 961 3,235 7,501 21%

60 - 69 6,494 2,198 952 9,846 29%

70 - 79 6,386 3,995 502 11,069 33%

80 + 2,660 2,632 186 5,686 17%

Total 18,464 9,786 4,875 33,125

% 56% 29% 15%

Oldest Pensioner = 101 years, 7 months = Primary Pensioner

3 Spouse Pensioners = over 100 years old

90 – 100 years old = 581 Pensioners

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Group Suspensions Additions

No Ave

Pension

No Ave

Pension

Capital

Transferred

Primary

Pensioners 917 R11,068 629 R14,791 R1,6 bn

Pensioner

Spouses 507 R8,559 537 R9,369

Member

Spouses 114 R3,869 117 R5,661 R 120 mil

Total 1,538 1,283 R1,7 bn

SENTINEL

(Dec 2018)

Current Ave

Gross Monthly

Pension

Ave Age Ave Years

Paid until

Suspended

Primary Pensioner R12,491 69,5 yrs 19,6 yrs

Spouse Pensioner R7,908 67,5 yrs 12,2 yrs

SOUTH AFRICA

(April 2019)

Population

Group

Ave Banked

Monthly

Values

Number

Bankserv Index Employees R13,741 3,092,809

Bankserv Index Pensioners R7,317 693,689

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11 081 22 044 24 112

Monthly Payslips

Annual Benefit Statements

Annual Tax Certificates

TOTAL ASSETS R 82.2bn

MEMBER

R 38.1bn

PENSIONER

R 44.1bn

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SA Equity 22%

SA

Property

7%

SA Nominal

Bonds 3%

SA LT ILB 29%

SA Money

Market 2%

Africa

Equity 7%

Foreign

Equity

17%

Foreign

Property

4%

EM Equity 6%China Equity 3%

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3.6%4.1%

6.3%

11.1%

3.1%3.8%

6.2%

11.8%

8.5% 8.8%9.3%

9.9%

1 Year 3 Year 5 Year 10 Year

Portfolio Benchmark CPI+4%

Geopolitics

Brexit

Trumponomics

Trade Wars

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Sovereign Rating 2019 Elections

Currency Volatility SOE’s

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Community DevelopmentSmall Business Finance and Enterprise DevelopmentHealth and WellnessEducationMicrofinance and Financial InclusionInfrastructure DevelopmentNatural Resources and ConservationRenewable Energy and Climate ChangeSustainable Agriculture and DevelopmentSustainable Consumer Products and Fair TradeAffordable HousingEnvironmental PreservationConsumer and Business Access to FinanceBroad-Based Black Economic Empowerment Funding

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AFFORDABLE

HOUSING

0.29%

CONSUMER AND BUSINESS

ACCESS TO FINANCE 0.47%

EDUCATION,

0.28%ENVIRONMENTAL

PRESERVATION

0.13%

HEALTH AND

WELLNESS

0.47%

INFRASTRUCTURE

DEVELOPMENT

1.39%

NATURAL RESOURCES

AND CONSERVATION

0.10%

RENEWABLE ENERGY

AND CLIMATE

CHANGE 5.52%

SMALL BUSINESS

FINANCE AND

ENTERPRISE

DEVELOPMENT 0.35%

SUSTAINABLE

AGRICULTURE AND

DEVELOPMENT

0.03%

Tsitsikamma Community Wind Farm

The Pavilion BredasdorpMoutse Mall Mpumulanga

Kathu Solar Park Northern Cape

Busamed Private Hospital

Harrismith

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Investment Charges All charges of investments and transaction costs

Advice Charges Investment consulting fees not included above

Admin Charges All personnel, IT & operational costs

Other Charges Legal & consulting fees, audit fees, Board fees,

FSCA levies, insurances, valuation charges and

annual report costs

Regulations 37 and 39 require that all fees and charges are disclosed

in a clear and understandable manner from 1 March 2019

Previous Total Direct Cost

Detail % Notes

Gross

Return

7.87% Net of

indirect

investment

cost

Less:

Direct

costs

(0.46%) All direct

charges

Net

Return

7.41% Earned by

portfolio

New Total Fund Charges

Detail % Notes

Gross Return 8.93% Before all

costs

Less: Total Charges (1.52%)

Investment charges (1.33%) All direct &

indirect

charges

Advice charges (0.01%)

Admin charges (0.16%)

Other charges (0.02%)

Net Return 7.41% Zero impact

Based on Pensioner Portfolio for the year ended 30 June 2018

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Recovered from Pensioner Portfolio, NOT pensions

Description2019

Budget

Investment Management Charges 1.42%

Advice Charges 0.01%

Admin Charges 0.19%

Other Charges 0.02%

Total Charges 1.64%

PURCHASING POWER

FUNDING LEVEL

INVESTMENTS

FINANCIAL

SOUNDNESS

MINIMUM TARGET

80% CPI

LONG TERM

CPI + 4%

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The Board will aim to increase pensions

annually by a minimum of 80% of year-on-

year headline inflation (CPI) as at 30 June,

taking into account the impact of any

award on the long term sustainability of

the pensioner account.

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Pension increases will be smoothed over

time, by allowing the funding level of the

Pensions Account to fluctuate

immediately after the increase between

95% and 105%.

The Board may further consider the

granting of an ad-hoc discretionary

payment to pensioners.

87%

119%100% 91%

109%130% 128%

100%88%

100%

12%

20%

17%15%

22%

17% 16%

11%12%

14%99%

139%

117%106%

131%

147% 144%

111%100%

114%

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Increases as % of CPI

Increase Bonus

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2012 2013 2014 2015 2016 2017 2018 2019

Portfolio Returns % 22 20.1 12.9 11.8 2.8 1.8 7.9 4.2

CPI % 5.5 5.5 6.6 4.7 6.3 5.6 4.6 4.4

Increases % 5 6 8.6 6 6.3 4.5 4.6 ?

Funding Level % (Pre) 101 107 111 106 103 100 101 99

Funding Level % (Post) 95.5 99.5 101 99.3 95.7 95.5 95.7 ?

Regime Spouse Definition Spouse

Pension

DBS Lump

Sum

MOPF MEPF

Before

June 1981

Before

April 1982

Spouse @ Retirement

50% Exclude LSB

& ERR

24 X or

convert

30 X or

convert

MEPF from

Sept 1994

minimum

12 X

From

June 1981

From

April 1982

Spouse @ Retirement

throughout until death

Jan 1991 to

Feb 2003

Spouse after

Retirement

33%Exclude LSB

& ERR

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Regime Spouse Definition Spouse

Pension

Lump Sum at

Death

Sentinel

Post

1/3/2001

MEPF

Post

1/3/2003

Spouse @ Retirement

75% Remainder of

5 yearTerm Certain

Sentinel & ME

Post 1/8/200575%

or

100%

Remainder of

5-25 yearTerm Certain

Sentinel From 2007

Flexible Pensions

Nominated spouse Continue, Convert or

Lump Sum

• Submit your tax return EARLIER, if required

– R350k to R500k increase in income threshold

– 2019 Tax certificates are in …Snail-mail?

• Update Sentinel records and e-CONNECT

eFiling: Before 31 January 2020

MobiApp: Before 4 December 2019

SARS Branch: 1 August 2019 to 31 October 2019

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Internal & External Auditor appointments

Know what you have coming inPay for necessities first

Take advantage of senior discountsShop smartly

Avoid major shopping centersQuit your vices & save on sin taxes…

Reminder: Exactly what you told your children..?

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THIS IS MERELY A REMINDER, NOT AN ADVERTISEMENT

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www.sentinel.za.com

(011) 481-8000

info@sentinel.za.com

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