Who pays my pension?

Alexforbes is the Fund’s appointed administrator. Their responsibilities include payment of monthly pensions to pension recipients

Why must I complete a certificate of existence every year?

The Funds issue certificates of existence every year and all pension recipients are required to complete the certificates and return them to Alexforbes every year. Failure to complete the certificate of existence will result in pension payments being suspended. The Trustees require the completed certificates to establish that the pension recipient has not passed on and that pension payments must continue. Please refer to the Contact page on the site for Alexforbes’ contact details.

Why must I submit proof of study for continued payment of a child’s pension?

Children’s pensions are paid to the children of deceased members until age 18. Children’s pensions continue to be paid after age 18 until age 23, if the child is a full time student. Recipients of children’s pensions who are between the ages of 18 and 23 must submit proof of study to Alexforbes annually to avoid pension payments being suspended. Please refer to the Contact page on the site for Alexforbes’ contact details.

How do I obtain a copy of my IRP5?

You can submit a request to Alexforbes to obtain a copy of your IRP5.Please refer to the Contact page on the site for Alexforbes’ contact details.

What must be done if a pension recipient passes away?

Alexforbes must be notified as soon as possible if a pension recipient passes away. An email can be sent to the Alexforbes pension payroll division or Alexforbes can be contacted. Please refer to the Contact page on the site for Alexforbes’ contact details.

Who do I inform if my contact details or address change?

Please inform Alexforbes of any changes to your address, email address or contact numbers. Please refer to the Contact page on the site for Alexforbes’ contact details.

Who do I contact with queries about my Bestmed Medical Aid membership?

Please contact the University’s Benefits Department with any queries regarding Bestmed Medical Aid membership.

Can I receive my payslips electronically?

You can receive payslips and all other Fund communication by email. Please forward your email address to Alexforbes pension payroll division with a request to receive communication and payslips by email.

How is my pension taxed?

The pensions paid by the Funds are taxable in terms of the Income Tax Act. The Act requires the Funds to deduct PAYE form the pensions similar to the University’s responsibility to deduct PAYE from employees’ salaries.  The standard tax rates applicable to individuals are applied, but pensioners with multiple sources of income can arrange for higher tax rates to be deducted.  

Can I convert my UP pension to an annuity outside the Fund?

Once you become a pension recipient, you may not convert your pension to an annuity outside the Fund.

Can my pension be converted to a lump sum and paid out to me?

A pension paid by the Fund cannot be converted to a lump sum and paid to the pension recipient (except in the case of very small pensions typically applicable to children’s pensions).

Why can’t the Trustees guarantee an annual pension increase equal to inflation?

The Funds have ringfenced assets specifically for the purpose of funding pension payments. These assets must be invested to afford the pensions paid and pension increases can only be granted if the investment returns exceed the returns required to support the current pensions being paid. Future investment returns cannot be guaranteed and, therefore, future pension increases cannot be guaranteed. The Trustees adopt investment strategies that support their pension increase policy of granting annual pension increases equal to 100% of inflation, but pension increases are subject to affordability and can unfortunately not be guaranteed.     

Can I make a lump sum withdrawal from my pension fund and accept a lower monthly pension?

You may not convert a portion of your pension to a lump sum after you start receiving a pension. A Pension Fund member can convert up to 1/3 of the value of his / her pension at retirement. This decision must be taken at retirement and cannot be taken after the pension payments commence.