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OLD MUTUAL SUPERFUND. Investment Managers. Old Mutual SuperFund Pension and Provident Funds. Risk Underwriters (Old Mutual). Administrator (Old Mutual). Board of Trustees. Participating Employer Special Rules. Participating Employer Special Rules. Participating Employer - PowerPoint PPT Presentation
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OLD MUTUALSUPERFUND
RiskUnderwriters(Old Mutual)
Old Mutual SuperFund Pension and
Provident Funds
Board of Trustees
Administrator(Old Mutual)
Investment Managers
ParticipatingEmployer
Special Rules
ParticipatingEmployer
Special Rules
ParticipatingEmployer
Special Rules
ParticipatingEmployer
Special Rules
ParticipatingEmployer
Special Rules
Master Rules
WHY AN OLD MUTUAL UMBRELLA FUND?
Solid track record that’s been proven in the market
Old Mutual smoothed bonus investments
Backed by the strength of Old Mutual with its commitment to service excellence
Ability to use experience to create simple, but excellent solutions
National footprint
The bottom line?Old Mutual has been doing this for a long time.We’ve learned the lessons and we know what we’re doing which means you reap the benefits.
The Old Mutual SuperFund Retirement Funds surpass the current FSB guidelines for umbrella funds
Advanced Governance
Funds are audited annually
Valuations as required by regulators
Each sub-fund (participating employer) is separately accounted for
More than half of the board members are independent from Old Mutual
Old Mutual’s role is clearly defined in the Rules of the Fund
Service providers may be replaced by the board members if so desired
In addition to the management board, good member representation can be facilitated through member committees
A SOLUTION FOR EVERYONEComprehensive Product Range
Maximum Employer Flexibility
MemberChoice
EmployerDefined
Package
SimplePackage
ORION
EVERGREEN
EASYBENEFITPLAN
EVERGREEN INVESTMENT
ADVICE
UNCLAIMED BENEFITS FUND
PROTEKTOR PRESERVATION FUNDS
MinimumRequirement
Benefits
Minimum 100 membersOR minimum API R100k pmAND minimum R10m assets
Flexible BenefitsEmployer Specific
Investment Strategy
Flexible BenefitsMember Investment
Choice
Tailor-madeBenefits
ComprehensiveCore Benefits
Limited Choices
Minimum 50 membersOR minimum API R50k pm
Minimum 10 members
Minimum 5 members
OLD MUTUALSUPERFUND
EASY BENEFIT
PLAN
• Defined Contribution Umbrella Provident Fund
• Defined employer contribution, employee make voluntary contribution
• Umbrella Risk Arrangement
• Insured benefits are pre-determined and pre-priced
• Family Funeral Benefit
What is the Old Mutual Easy Benefit Plan?
• Standard benefits
• Generic quotation (no need for member data because all contribution rates, benefits and costs pre-determined)
• No upfront underwriting
• One smoothed bonus investment portfolio
Contributions and Premiums
Employer (% of salary)
Retirement Savings: 5.2%
Insurance: 2.5%
Scheme expenses:0.8%
Total: 8.5%
May make additional voluntary contributions (any amounts)
Fee of R21 per member per month (deducted from savings account)
Employee
0% of salary
May make additional voluntary contributions (any amounts)
Insured Benefits - Death
Type of Benefit Cover Special Conditions Legal vehicle
Life Cover Age<50: 1.2 x actual retirement funding income over last 12 months; Maximum of R216 000.
Age>50: 0.8 x actual retirement funding income over last 12 months; Maximum of R144 000
6-months exclusion for natural death
Retirement Fund
(approved)
Family Cover R5000: Employee, spouse, child aged <20 and >14
R2500: Child aged <14 and >6.
R1000: Child aged <6 (includes stillborn).
6-months exclusion for natural death
Insurance policy outside the Retirement Fund
(unapproved)
Insured Benefits – Injury and Incapacity
Type of Benefit Cover Special Conditions Legal vehicle
Lump Sum Age<50: 1.2 x actual retirement funding income over last 12 months; Maximum of R216 000.
Age>50: 0.8 x actual retirement funding income over last 12 months; Maximum of R144 000.
6-month waiting period
Pre-existing conditions excluded (24/24)
Retirement Fund
(approved)
Temporary Income Replacement
75% actual retirement funding income over last 12 months; Maximum of R11 250 per month.
Payable for a maximum of 5 months in any 24 month period.
1-month waiting period
Pre-existing conditions excluded (6/12)
Insurance policy outside the Retirement Fund
(unapproved)
Pre-requisites for participation
Internet & email
Negotiation with staff and change to employment contracts
80% of permanent staff participate upfront (minimum of 5 at commencement)
100% of all new eligible employees must participate
OLD MUTUALSUPERFUND
ORION
Orion
• A suite of building blocks to create an employee benefits solution for small and medium enterprises.
• No member choice.
• Limited selection of investment options:
• Absolute Stable Growth Portfolio (80% guarantee) (DEFAULT)
• SYmmETRY Aggressive, Balanced, Conservative and Islamic Funds
• Selected by employer per member category
• Can combine Absolute Stable Growth Portfolio and a Symmetry Fund
• Comprehensive, competitively priced group risk benefit options
• All costs charged as % of salary
• All combinations of inclusive and exclusive contribution structures available
• Housing sureties allowed
Orion Group Life Assurance Benefit
Group Life Assurance Benefits
(Defined Benefit)
• Cover to continue (Compulsory with GLA & Disability Income in within one member group)
• Lump sum on death of member
• Multiple of salary (max 10 x annual salary or R35 mil) OR
• Fixed rand amount (flat cover)
• Lump sum in addition to Group Life Assurance benefit provided on accidental death
Accident Death Benefits:
• Not offered without Group Life Assurance
• Maximum 100% of Group Life
Assurance OR
• 5 x annual salary
• Conversion option
Family Funeral Benefit
Life Covered Maximum cover
Main member R60 000
Spouse R18 000
Dependent child >14 R18 000
Dependent child 6-13 R12 000
Dependent child 0-5 R6 000
Still born child R3 000
Disability Benefits
Disability Income Benefits
Provide an income upon disability,
paid until normal retirement date,
recovery or death – whichever occurs
first.
Additional benefits offered:
• Employer waiver
• Conversion option
• Escalation
Lump Sum Disability Benefits
Lump sum provided on total and permanent disablement of member.
• Group Life benefits required
• Annuity in respect of Pension Fund
• Maximum = lesser of GLA benefit, 5 x Annual Salary or R5 million
• Options:
- Own and Similar Occupation
- Any Occupation
Expenses and Fees
Expenses and fees
Scheme Administration Fee
Participating Employer per month:R400 (incl VAT) using Direct Debit
R600 (incl VAT) not using Direct DebitThese fees combine into a single % of salary included with contributions
MemberAdministration Fee
R21 (incl VAT) per member per month deducted from contributions
Fund Expense Fee
R4.50 per member per month (included in R21 above)
Advice Fee LOA commission scale used
Investment fees (Absolute Stable Growth Portfolio)
Currently 0.65% pa investment fee PLUS 0.70% pa capital charge
Summary of participation requirements
Minimum of 10 members
If insured disability benefits selected, all members must be covered.
If Family benefits selected, all members must be covered.
If GLA benefits selected:
o All members must be covered and
o Minimum of 10 members per defined benefit level (multiple or fixed amount)*
* For a scheme with at least 50 members or R50 000 total monthly contributions, this requirement will be waived only for an executive/senior management group with less than 10 members
OLD MUTUALSUPERFUND
EVERGREEN
Evergreen
A solution geared for larger employers or employers with more diverse workforce requirements
Member level investment choice
Servicing geared to larger employers with no intermediary payroll admin involvement
Defined Contribution only
Pension or Provident Fund
Inclusive (total contribution rates decided – retirement contribution rates are balance after costs/premiums) or exclusive (retirement contribution rates decided – total contribution rates are sum of retirement contribution rates and costs/premiums) employer contribution basis
Open architecture risk benefits
Education seminars delivered to members
Housing sureties allowed
Risk Benefits
Offering more options
Any Licensed Life Insurer
Enable different benefit levels/different underwriting conditions
Defined Benefit or Defined Contribution risk benefits
Negotiated underwriting conditions acceptable to participating employers, members and trustees
Advantages of Old Mutual insurance
Managed disability product
Funeral support service (transport of mortal remains, etc.)
Structured Member Choice 3 Package Options – Pay for what you use
Contribution choiceNo investment choiceAnnual statements
Smoothed Bonus
Contribution choiceStructured investment choiceAnnual statements
Quarterly investment statements
Smoothed BonusLifestageIslamic Fund
MANAGED CHOICE
Contribution choiceFlexible investment choiceAnnual Statements
Quarterly investment statements
Smoothed BonusLifestageFlexible investment choice
FLEXIBLE CHOICELOW CHOICE
(DEFAULT)
Investment Portfolios
Absolute Stable Growth
Coregrowth
Absolute Stable Growth
Coregrowth
Absolute Stable Growth
LOW CHOICE MANAGED CHOICEFLEXIBLE CHOICE
Life stage
Multi-managers
Single Asset Managers
SYmmETRY ForLife - Aggressive ForLife - Stable ForLife - Defensive
SYmmETRYAggressive BalancedCPIX + 5
Islamic Fund Inv Solns Conserver
Performer62.5% Equity
SYmmETRYIslamic Fund
SYmmETRY ForLife - Aggressive ForLife - Stable ForLife - Defensive
DEFAULT
OMIGSA Money MarketCommunity Growth GiltGiltAbsolute ReturnProfile PinnacleProfile BalancedProfile Stable Growth
Allan Gray Domestic Balanced Domestic Stable
Global Balanced Global Stable Fraters Real Income
Coronation Global Absolute HouseviewManaged Portfolio II
Investec Managed Opportunity Income Prudential Inflation Plus
Allan Gray closed for new selections
Expenses and Fees
Expenses and fees
Scheme Administration
Fee
R1 000 (incl VAT) per participating employer per month – Pay via direct debit (automated collection)
R1 500 (incl VAT) per participating employer per month – Do not pay via Direct debit
Member Administration
Fee *
Low ChoiceR21 (incl VAT) per member per month
deducted from contributions
Managed Choice
R37 (incl VAT) per member per month deducted from contributions
Flexible ChoiceR63 (incl VAT) per member per month
deducted from contributions
Advice/Service/ Consulting
Fee
% of contribution or flat %Negotiable from zero to max of LOA commission scale amount
Investment fees (Absolute
Stable Growth Portfolio)
Currently 0.65% pa investment fee + 0.70% pa capital charge
Switch FeeThere is NO FEE for changing Package options or switching
assets amongst the investment portfolios
* Member Administration Fee includes the Fund Expense Fee of R4.50 per member per month
OLD MUTUALSUPERFUND
EVERGREEN
INVESTMENT
ADVICE
Evergreen Investment Advice
Investment Advice at participating employer level
The employer, with assistance from investment consultant, tailors the investment options to the needs of its employees
A solution geared for larger employers
Accredited investment consultants include OMAC , Symmetry and acsis
Conditions for participation
If a participating employer selects the Evergreen Investment Advice Option, then the Evergreen standard ‘no-advice’ options (Low, Managed and Flexible Choice Options) will not be available to members.
The Evergreen Investment Advice option can only be selected by an employer and not by individual members.
Ongoing advice: Once the option is selected the employer group will receive initial and ongoing investment advice.
Members cannot opt-out: Members in a category where this option has been selected will not be able to opt out.
Employer and adviser assume liability: The employer and adviser will assume contractual liabilities in respect of the investments selected.
Minimum membership/contributions: A scheme must have a minimum of 50 members or monthly contributions of at least R50 000.
Expenses and Fees
Scheme Administration Fee
R1 000 (incl VAT) per participating employer per month charged as % of salary
Member Administration Fee
Investment Advice Option
R40 (incl VAT) per member per month deducted from contributions
Fund Expense FeeThe R40 admin fee above includes a R4.50 per member per
month
Advice Fee (intermediary/service)
Investment Consulting Fee
LOA scale or % of salaries
% of assets up to 0.5% excl VAT(or up to 0.57% incl VAT) of the assets per annum
Switch Fee None
Group Choice with member controlMember Choice
Evergreen Investments
Low Choice
R21pmpm
Managed Choice
R37pmpm
Flexible Choice
R63pmpm
Group Investment
Advice
R40 pmpm
Advice fee up to 0.5% (excl VAT) ofassets p.a.
OM Corporate receives 30% of this.
Existing Evergreen MLIC product option in SuperFundNew Evergreen Investment
Advice product in SuperFund
OLD MUTUAL
SUPERFUND
Value Adds
SUPERFUND ADDING VALUEA range of extra member benefits
AT NO ADDITIONAL COST IF GLA AND/OR FAMILY BENEFITS INSURED
WITH OLD MUTUAL: Funeral Support Service
• Transport of mortal remains from anywhere to any destination in South Africa
• Family assistance with funeral arrangements
AT NO ADDITIONAL COST IF DISABILITY BENEFITS INSURED WITH OLD
MUTUAL: Disability CareLine
AT NO ADDITIONAL COST IF INSURED BENEFITS WITH OLD MUTUAL: Travelling Nurses – a great new initiative designed to take the hassle out of underwriting
AT NO ADDITIONAL COST FOR SELECTED CLIENTS: Financial Wellbeing Program – a solution for employees providing:
• Financial Education – for ALL levels of staff
• Access to Advice – for ALL levels of staff
Communication
Electronic newsletters emailed to intermediaries, employers and members
Trustee newsletters to members
Internet site with information for members, employers and intermediaries (www.oldmutual.co.za/superfund) (www.oldmutual.co.za/evergreen) (www.oldmutual.co.za/orion) (www.oldmutual.co.za/easybenefitplan)
Secure payroll web for submission of payroll data
Secure web access for members to see values and information (Evergreen)
THANK YOU
“The future depends on what we do with the present.”