Fund Summary

This is just a brief overview of how your Fund works. Please see the benefits menu above for detailed information.

Fund Credit

All monthly contributions, excluding contributions to risk benefits and administration costs, plus all bonuses be it positive or negative, are allocated to your Fund Credit account.

You can see your current Fund value by registering on the secure member website: www.retirementfundweb.co.za.

• You receive a tax deduction on your contributions towards all retirement funding, up to 27.5% per annum, of remuneration/taxable income. This is subject to a maximum deduction of R430 000 per year – any excess amount can be rolled over and deducted in future years. This means that increasing your monthly contributions result in less of your monthly income being taxed!
• Retirement funds are managed cost effectively and the investment fees are very competitive, as a result of “buying power” due to economies of scale. Lower costs = Higher savings for your retirement!
• The money you earn on investments while you are contributing to the Fund is also not taxed, which means no capital gains tax, tax on interest, etc.
• When you retire, the first R550 000 of your savings can be taken in cash without being taxed.
• Your retirement savings are not part of your estate – which means they don’t get estate duty tax or attract executor’s fees if you pass away.
• The Pension Funds Act limits the type of deductions that may be applied to your Fund benefit when you leave a fund. This is to prevent creditors from accessing the money that is meant to provide you with a retirement income. Your fund may not pay another party, like a bank or company, for personal, car or study loans, credit card debt, or other outstanding payments, except for pension-backed housing loans.

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Retirement Age

• Normal retirement age is 65 years.
• You may voluntarily retire from age 50.
• An extended retirement after normal retirement age of 65, on condition that the employer and member mutually agree accordingly, is allowed. The usual contributions will continue, but you will no longer enjoy any death or disability cover after age 65: only family funeral benefits are payable. You will not contribute towards the risk benefits after age 65.

Although the benefit does not differ whether a member retires or resigns, it may be more tax efficient to retire rather that to resign. More information can be obtained from the Fund's benefit counsellors. 

Retirement Benefits Counselling 

You have free access to a counsellor who can explain the options you have when you resign or retire from your employer. The counsellor does not give advice, but rather information about retirement planning matters in simple and straightforward language.

Sanlam Benefit Counsellors

Toll-free number: 0800 111 956

WhatsApp or phone: 0861 223 646

Email: advicereferral@sanlam.co.za 

INFund Solutions

Phone: 012 880 5983

Email: mgf@infund.co.za 

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Contributions

The MGF is a defined contribution retirement fund (DC fund) where you will always, even upon resignation, be entitled to at least all member contributions plus the contributions of the employer after the contributions for risk benefits and administration cost have been deducted plus or minus the net return.

• Members
  Members contribute at a minimum rate of 7.5% of their annual salary, which is allocated to the member’s Fund Credit.
• Employers
  For members who joined before 1 July 2012 the standard contribution rate of employers is 22% of a member’s pensionable income. For members joining after July 2012 it is 18%.

From the employer contribution, 2.75% is allocated to risk benefits (2.25%) and admin costs (0.5%).

The balance of the employer’s contribution is credited directly to your Fund Credit account. Employers may, with the consent of members and the Management Committee, contribute at a lower or higher rate, subject to such conditions as imposed by the Management Committee.

• Contract Appointments
  Such members may structure their contributions according to their requirements but subject to the following minimum:
• 4% (minimum) employer contribution.
• 7.5% (minimum) employee contribution.