Specified additional pension savings

  • What are “specified additional pension savings”?

    CIL and SA’s wage agreements of January 2016 raised employers’ contribution to pension funds on the general labour market in steps to 3.5%. Fund members may elect to pay this additional contribution into “specified additional pension savings”.

    This does not involve “regular” additional pension savings, and fund members must make their own informed decisions on whether they want to take this course. If no choice is made, the contribution will go into a co-insurance department and thereby increase pension rights.

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  • Who is entitled to “specified additional pension savings”?

    Everyone working on the general labour market and covered in the January 2016 wage agreement of CIL and SA.

  • How are “specified additional pension savings” different from “regular” additional pension savings?

    • You can begin receiving “specified additional pension savings” five years before the traditional pension age. You can begin receiving other additional pension savings when you turn 60.
    • You cannot use “specified additional pension savings” to save tax-free to purchase a dwelling word to pay off tax-free housing loans.
    • When a fund member dies, “specified additional pension savings” pass to a surviving spouse and children, like other additional pension savings.

    In both instances, fund members can choose their yield programme.

  • Do “specified additional pension savings” effect disability and surviving spouse pensions?

    Yes. The disposition of contributions to “specified additional pension savings” do not, regarding those contributions, earn rights to lifelong pension payments, disability and surviving spouse pensions with extrapolation.