Business Brief

Operating under the ethos of mutuality, PPS always looks for opportunities for our valued members to benefit from shared success. One such opportunity is to unlock the potential of their PPS Profit-Share Account during their retirement years. Not only will this help members bolster their retirement savings and combat the longevity risk faced by South African professionals, but it also affords you another touch point to guide their holistic financial needs at PPS.

Maximising Profit-Share for members

PPS has no external shareholders and operates solely for the benefit of its members. Therefore, 100% of the operating profits generated by the company are shared among PPS members* through the PPS Profit-Share Account. PPS members receive profit allocations to their PPS Profit-Share Account based on the qualifying products they hold, as well as the profitability and investment returns the company earns.

Unlocking the potential of the Vested PPS Profit-Share Account

From the age of 60, the funds members have accumulated through the PPS Profit-Share Account throughout their PPS membership can be vested in their name via the Vested PPS Profit-Share Account. The PPS Profit-Share Account will then be referred to as the Vested PPS Profit-Share Account. At this point, members can include this unique benefit in their retirement plan.

By vesting, members can:

• Keep their PPS Profit-Share Account assets invested for longer to generate further returns and capital growth while continuing to share in the profits in retirement (attributable to PPS Investments).
• Use the Vested PPS Profit-Share Account as part of their retirement planning to supplement their post-retirement income by combining regular withdrawals from their Vested PPS Profit-Share Account with PPS Living Annuity income payments, allowing their annuity capital to last longer.
• Maximise the tax benefits as withdrawals are net of tax; therefore, the tax reporting is not the members’ responsibility.
• Benefit from efficient estate planning as the Vested PPS Profit-Share Account proceeds will flow directly to their beneficiaries and not via their estate upon death.
• Pay PPS Insurance, Profmed and PPS Short-Term Insurance premiums.

Members can pay PPS premiums from the Vested PPS Profit-Share Account

Members have access to a newly added enhancement and functionality allowing them to pay for the following premiums directly from their Vested PPS Profit-Share Account, provided that the value of their Profit-Share Account is more than R50 000:

• PPS Insurance
• Profmed
• PPS Short-Term Insurance

This payment option will only be available to members older than 60 who vest their PPS Profit-Share Account at PPS Investments. Where a member pays premiums through their Vested PPS Profit-Share Account, we will pay valid claims into an account registered in the member’s name.

The benefits of paying premiums via the Vested PPS Profit-Share Account include:

• Ability to supplement their post-retirement income.
• Retaining life insurance, short-term cover and medical aid benefits during retirement.
• Assisting with addressing the longevity risk faced in retirement by the professional market compared to the average South African.
• Maximising the benefit of their vested profits in retirement.

Members can view the value of their Vested PPS Profit-Share Account, access the functionality to add a premium payment instruction and track the progress via the PPS Investments Secure Site (ppsisecure.co.za).

For additional resources, you can access the “How to” guide and brochure.

Benefits of retiring with PPS Investments

At PPS Investments, we offer bespoke post-retirement solutions allowing PPS members to secure a retirement income; and offer benefits geared to bolster retirement savings.

Qualifying PPS members can:

• Supplement retirement income and continue earning Profit-Share in retirement with the Vested PPS Profit-Share Account.
• Secure a monthly lifetime income, via a PPS Living Annuity with Lifetime Income, that will never reduce in nominal terms, regardless of market movements.
• Earn extra Profit-Share when:
  • Linking – Earn extra Profit-Share based on family members’ investments on our platform.
  • Activating the PPS Profit-Share Cross-Holdings Booster – The more of a variety of products members hold from across the PPS Group subsidiaries and affiliates, the more Profit-Share growth they can expect.  
  • Investing in PPS funds – choose from the PPS range of single- and multi-managed funds, backed by premium managers.
  • Access to reduced admin fees through the PPS Investments Family Network.

Encourage members to consolidate their retirement and investment portfolios at PPS Investments to access a range of bespoke benefits suited to our members’ needs. When members retire at PPS Investments, we continue adding value on the journey of lifetime mutuality. The continuation of service to members during the retirement phase can be enormously rewarding – for the member and financial advisers. For more information, visit www.pps.co.za/invest.

By PPS Investments 

Members holding qualifying products share in the profit and the loss of PPS and past performance is not necessarily indicative of future performance. The PPS Profit-Share Cross-Holdings Booster is tiered according to the number of products a member holds across subsidiaries and affiliates. If they hold a PPS Life Risk product and take up a qualifying product(s) from a PPS subsidiary/affiliate (PPS Short-Term insurance, Profmed and/or PPS Investments) it will increase their allocations.

PPS Investments Group is a subsidiary of Professional Provident Society Insurance Company Limited (PPS),a licensed insurer conducting life insurance business, a licensed controlling company and an authorised FSP. PPS Investments Group consists of the following authorised Financial Services Providers: PPS Investments (Pty) Ltd (“PPSI”), PPS Multi-Managers (Pty) Ltd (“PPSMM”) and PPS Investment Administrators (Pty) Ltd (“PPSIA”); and includes the following approved Management Company under the Collective Investment Schemes Control Act: PPS Management Company (RF) (Pty) Ltd (“PPS Manco”). Financial services may be provided by representative(s) rendering financial services under supervision.