Contributions payable to the retirement fund

What contributions are paid? 

You may structure your package and contribution category. Depending on your selected contribution category, PetroSA will contribute (expressed as a percentage of your pensionable salary) to the Retirement Fund according to the following table: 

Category of employment  Percentage %
A 7.5
B 10
C 12.5
D 15
E 17.5
F 20 
G 22.5
H 25 
I 27.5



The contributions that are made are tax- deductible. 

How often can the contribution rate be restructured? 

You can restructure your package yearly (on the annual salary review date). If don’t exercise a choice by around 10 August yearly (the actual date is confirmed and advised to you in advance) you will be kept in your current contribution category (if you never make a choice you are defaulted into Category C).

How much of my package should be structured as retirement savings?

In order to provide a reasonable retirement benefit you should ideally structure your package so that PetroSA contributes at least 15.0% % of your pensionable salary for your retirement savings. 

Possibly the main reason why you might structure your package on a lower retirement savings contribution rate is to pay off debt (for example your housing bond) quickly. 

Generally you pay interest of about 10% p.a. on debt and by paying it off quicker you are earning an after tax return equal to the interest rate on your debt. 

If you elect a lower contribution rate for the period that you might be paying off a debt, then it is very important that you increase your retirement contribution as soon as the debt is paid. 

Note: There is a huge risk of inadequate retirement benefits if you make too low allocation for retirement savings. 

The Fund has developed an interactive retirement planner so that you can better understand the relationship between the retirement savings contributions you make and your retirement benefit. You can find the link to this tool via Alexander Forbes on-line. 

Can I transfer benefits from a former fund into the PetroSA Retirement Fund? 

Yes, the Rules of the Fund allow any member to transfer in benefits from a former Fund, subject to the requirements of the Pension Funds Act.

What is the definition of pensionable earnings? 

The amount of your salary that is regarded as pensionable is 80% of total guaranteed remuneration, in accordance with your contract of employment.