|Minimum investment||R50 000 Lump sum investment|
|Initial Administration Fee||No Fee|
|Initial Management Fee|
|Financial Advisor Initial Fee||A maximum fee of 1.5% excluding VAT|
|Annual Administration Fee||
A weighted average fee is charged on the value of your Investment Account:
The Hollard Investments Annual Administration fee may differ in certain circumstances.
|Financial Advisor Annual Fee||
A maximum fee of 1% excluding VAT
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The Hollard Pension Preservation Plan provides a tax-efficient method for investors to preserve their retirement money received from an employer’s pension fund when leaving their employ. Savings are preserved until retirement at which time the investor will receive a retirement benefit.
The following may be transferred to the Fund, subject to the product rules and relevant legislation:
The minimum amount required to open an Investment Account is R50 000
Income tax will be deducted from any benefit taken in cash before it is paid out on withdrawal, retirement or death, in accordance with Income tax legislation. The investment is not subject to Capital Gains tax, Interest Income tax or Dividends Tax.
When you open your investment account you will select the investment portfolios into which you wish to invest. You may select any one or a combination of the Investment Portfolios offered, and may switch between funds at your discretion. It is important for you to monitor and review your investment portfolio selection on a regular basis, in order that your investment continues to meet your financial needs.
In order to protect a member’s retirement benefit, the Pension Funds Act contains guidelines which regulate the extent to which a member may invest in certain asset classes. The Administrator is required to ensure that each member’s investment complies with these asset exposure limits, which broadly speaking are as follows:
Each Investment Portfolio offered to investors in the Hollard Pension Preservation Plan complies with the Regulation 28 limits.
No, the right to benefits may not be ceded or pledged.
No, due to the nature of the product, you may not cancel your membership and no cooling-off period applies. You may transfer your investment to another approved Pension Preservation Fund or your employer Pension Fund.
No, the product does not provide a guarantee on the value of your investment account nor does it guarantee the performance of the investment. The market value of the investment account may fluctuate and go down as well as up, and past performance is not necessarily a guide to the future. The investor carries the investment and market risk which includes the possibility of losing capital.
You may not invest additional monies into your investment account. You may open multiple investment accounts should you have benefits from separate employer’s pension funds that you wish to preserve.
Investors are entitled to one full or partial withdrawal benefit prior to retirement. If you have already taken a withdrawal from the benefit when it was being managed within another Preservation Fund, you will not be permitted to take another withdrawal after transfer to the Hollard Pension Preservation Plan. Income tax will be deducted from the withdrawal before it is paid out.
You may request to retire from the Fund once you have reached the age of 55. You may request an early retirement in the event of permanent disability due to ill-health or illness. Early retirement requests are granted at the sole discretion of the Trustees of the Fund.
A maximum of one third of your retirement benefit may be withdrawn in cash. Tax will be deducted from the withdrawal before it is paid out according to a tax directive issued by SARS. The portion of the benefit which is not cashed out, at a minimum two thirds of the benefit value, must be used to purchase a compulsory annuity from a registered long-term insurer. If the retirement benefit on the date of retirement is R247, 500 or less then you may withdraw the entire benefit in cash, you are not required to purchase a compulsory annuity.
Your Pension Preservation investment does not form part of your estate and will not be governed by your last will and testament. In accordance with Section 37 of the Pension Funds Act, the Trustees of the Preservation Fund have full discretion to award death benefits as they feel appropriate. Dependents will be given preference when allocating the Benefit in accordance with legislation, after which nominated beneficiaries and your estate will be considered. The benefit due on the death of the investor is the value of the investment at the time of processing the death claim, less any fees and charges. Each party who has been awarded a portion of the death benefit will receive it in one of the following ways:
It is recommended that you appoint a financial advisor to assist you. The Fund, Hollard Life in their capacity as the Administrator and the Manager do not provide financial advice, and may only supply the investor with factual or administrative information relating to the investment products and portfolios.