The PPS Retirement Annuity offers a tax-efficient and cost-effective retirement savings solution, structured from your selection of underlying unit trusts.
During 2010, the Trustees introduced a new section within the PPS Retirement Annuity - the biggest enhancement yet in the Fund's history. This new section offers you the full benefits of a new generation retirement annuity, which is no longer policy-based but structured from a selection of underlying unit trusts. In 2012, the Trustees went one step further still and closed the underwritten, policy-based section of the Fund to new investors. While new Fund members are safeguarded from investing in an old generation product, existing Fund members are able to convert to the new section within the Fund itself. This unique and exclusive proposition means investors can access a more cost effective, more transparent and more flexible retirement savings product.*
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Lump sum: R10 000
Recurring: R500 per month* Ad hoc: R5 000
* The minimum recurring debit order amount if you are under the age of 30 is R200 per month, which should be escalated to the normal minimum of R500 per month after your 30th birthday.
Subject to Fund rules, you may transfer your existing retirement annuity fund to the PPS Retirement Annuity by means of a Section 14 transfer. The rules of the PPS Retirement Annuity also allow you to transfer your investment from this Fund to another registered retirement annuity, should you wish to do so.
You may retire from the PPS Retirement Annuity at any stage after your 55th birthday but you may retire sooner if you are permanently disabled due to injury or illness or if the value of your investment is less than R7 000. Upon retiring, you may withdraw one third of your capital (of which the first R500 000 will be tax-free), and use the remaining two thirds of the capital to purchase post-retirement income from a registered insurer. If the total retirement benefit in the Fund is R247 500 or less, you may commute the total capital as a lump sum benefit.
You may change your selection of underlying unit trusts as often as you choose without incurring a transaction fee. However, should an asset manager charge an initial up front fee for investment into its unit trusts, this fee would be applied should you switch to those unit trusts.
Amounts contributed to pension funds, provident funds and retirement annuity funds during a tax year are deductible by members of those funds. The deduction is limited to 27.5% of the greater of remuneration for PAYE purposes or taxable income (both excluding retirement fund and severance benefits). Furthermore, the deduction is limited to a maximum of R350 000. Any contributions exceeding the limitations are carried forward to the next tax year and are deemed to be contributed in that following year. Any unclaimed contributions may also reduce the taxable amount of a lump sum taken at withdrawal, retirement or death, and will reduce the taxable amount of the annuity income upon retirement. As further tax incentives, the growth on your PPS Retirement Annuity does not attract capital gains tax or withholding tax on dividends. Interest, foreign dividends and rental income are also currently untaxed.
The PPS Retirement Annuity is required to comply with the Prudential Investment Guidelines of Regulation 28 of the Pension Funds Act and with Exchange Control legislation. As such, you are allowed maximum exposures of 75% of the investment amount to equity investments, 25% to property investments, 30% to international investments and 10% to African investments. This is applied on an individual member level as well as on an overall Fund level.
The PPS Retirement Annuity is governed by a largely independent Board of Trustees with extensive experience and understanding of retirement fund issues. The Board comprises a Chairman, a professional Principal Officer and several Trustees.
Should you die before you retire, the proceeds of your PPS Retirement Annuity will be distributed to your dependants or beneficiaries*, who may elect to take the full benefit or a portion as a lump sum and commute the remainder to a living annuity.
* Please note that the allocation to the beneficiaries is at the discretion of the Trustees, based on the Provision of section 37C of the Pension Funds Act, No. 24 of 1956. Your nomination will serve to assist the Trustees in making these decisions, but may not be binding on them.
FORMS AND DOCUMENTS
If you already have a retirement annuity and now want to maximise your retirement savings, click here.
*May be subject to a termination charge.
Retirement Benefits Counselling brochure
PPS Funds Select the option suitable to you We build diversified funds across managers and strategies to achieve consistent performance over time. Our experienced investment team manages the asset allocation and manager combination of each solution. You just need to select the appropriate multi-managed fund. View our PPS Funds>>
Other Funds You select from managers on our platform You choose the appropriate combination of funds from our pre-approved list to construct the solution you want. Our online functionality allows you to manage your overall asset allocation and change the combination of funds at any time. View our other Funds >
Other Funds
PPS Managed Share Portfolio The PPS Managed Share Portfolio is accessible by intermediated investors only, and is offered as an investment option within PPS Investments' range of retirement funds. The PPS Managed Share Portfolio provides direct access to securities listed on the Johannesburg Stock Exchange (JSE). Managed in conjunction with a selected stockbroking company, this offers unique advantages to discerning, high-net-worth investors who seek personal involvement in managing their savings. More about the Managed Share Portfolio>>
Depending on your preference, there are a few ways you are able to invest with us.
Invest via an adviser We always recommend seeking the advice of an experienced and qualified financial adviser to help you set financial goals, save sufficiently for these goals and stick to your investment plans. Should wish to find a PPS Investments accredited adviser, leave your details here and someone will to contact you shortly.
Invest via an adviser
Invest Now With the InvestNow functionality, you're able to place new investments, top up existing investments, switch or make withdrawals. And in-app notifications keep you updated on the progress of your transactions. A nifty retirement calculator and access to key documents like tax certificates are added benefits. Click here to use this functionality.
Invest Now
With the InvestNow functionality, you're able to place new investments, top up existing investments, switch or make withdrawals. And in-app notifications keep you updated on the progress of your transactions. A nifty retirement calculator and access to key documents like tax certificates are added benefits. Click here to use this functionality.
Printing and completing an application form You're also welcome to print the application form and send it to our Validations Team at admin@ppsra.co.za. For any further support, contact our dedicated client service teams between 8:00 and 17:00, Mondays to Fridays at 0861 777 723 or info@ppsra.co.za to assist you with your transaction.
