APRIL 2014

NOTICE BOARDOfficial Communication of the Verso Umbrella Retirement Funds

BOARD OF TRUSTEES:Ms W Parker (Independent Trustee and Chairperson), Mr S Kennard (Verso Appointed Trustee), Mr W Rossouw (Independent Trustee), Adv C Franken (Verso Appointed Trustee), Mr E Thomson (Verso Appointed Trustee), Mr W Breytenbach (Verso Appointed Trustee), Ms B Krummeck (Principal Officer)

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CONTACT DETAILS: Belmont Office Park, Twist Street, Bellville. 7530 P.O. Box 4300, Tyger Valley, 7536

Telephone: 021 943 5300 Fax: 021 917 4600 E-mail: info@vurf.co.za website: www.vurf.co.za

BUZZ WORD FOR APRILPENSION FUND:A fund contributed into by employees AND employers, from which a maximum of one third may be taken in cash and the balance be used to insure/buy a pension (monthly income) at retirement.

PENSIOENFONDS:'n Fonds waartoe werknemers EN werkgewers bydra, waaruit 'n maksimum van een derde in kontant by aftrede geneem kan word en die balans aangewend moet word om 'n pensioen(maandelikse inkomste) mee te verseker of aan te koop.

UMBUTHO:UMbutho ufumene umnikelo weLungu KUNYE nomqheshi, isixa-mali esiyikota singafumaneka kuze eshiyekileyo zesi setyenziswe ukuthenga ipenshini uze uyifumane qho nge nyanga.

We are already in Autumn and I was thinking of how quickly we adapt when seasons change.

In the retirement fund industry, we are definitely entering a period of many changes. I believe most of these changes will be to the advantage of the majority of members in retirement funds. The 2014 newsletters and posters will discuss the changes that will have an impact on members in the Verso Umbrella Retirement Funds.

In this issue we will specifically focus on the difference between a pension and a provident fund and the changes that will be effective from 1 March 2015. Members are encouraged to read this article and to forward questions via your employer if you would like any additional information.

Following the Minister of Finance’s budget speech, taxation of retirement funds has been amended. The Fund’s website has also been updated with this information.

We have identified that one of the most effective communication channels to members is via their cell phones. In future, we want to make use of SMS services to inform you of new or important information. Look out for the competition we have launched to encourage members to forward their cell phone numbers to the Fund. The serving terms of the two independent trustees on the Funds expired on 28 February 2014. It was decided to re-appoint the independent trustees with effect from 1 March 2014. Advocate Franken was appointed as a sponsor trustee. A chairperson will be elected at the Board of Trustee meeting scheduled for 17 April 2014. We will confirm the election result in our next newsletter.

Please remember to visit the Funds' website at www.vurf.co.za, for the latest Fund and industry news. It is important that as a fund member you keep abreast of the new developments that will have an effect on your retirement.

I hope that you will find the articles insightful.

Brenda KrummeckPrincipal Officer

Met herfs reeds hier, het ek daaraan gedink hoe maklik ons aanpas van die een seisoen na die volgende.

In die aftreefondsbedryf betree ons beslis 'n tydperk van vele veranderinge. Ek glo dat die meerderheid van die veranderinge tot voordeel van die meeste lede van aftreefondse sal wees. Die nuusbriewe en plakkate in 2014 sal die veranderinge wat 'n impak op lede van die Verso Sambreel Aftreefondse het, bespreek.

In hierdie uitgawe sal ons spesifiek op die verskille tussen 'n pensioenfonds en 'n voorsorgfonds fokus, asook die veranderinge wat vanaf 1 Maart 2015 van krag sal wees. Lede word aangemoedig om hierdie artikel te lees en dan vrae aan jou werkgewer te rig indien jy enige bykomende inligting verlang.

Na aanleiding van die Minister van Finansies se Begrotingsrede is die belasting op aftreefondse gewysig. Dié inligting is ook op die Fonds se webwerf beskikbaar.

Ons het besef dat een van die doeltreffendste maniere om met lede te kommunikeer is deur hul selfone. In die toekoms wil ons graag van SMS-dienste gebruik maak om lede van die nuutste of belangrikste inligting in te lig. Wees op die uitkyk vir ons nuwe kompetisie wat lede aanmoedig om hul selfoonnommers aan die Fonds te stuur.

Twee van die Fonds se onafhanklike trusteelede se dienstermyne het op 28 Februarie 2014 verstryk. Die Raad het besluit om die onafhanklike trusteelede weer vanaf 1 Maart 2014 aan te stel. Advokaat Franken is as borgtrustee aangestel. 'n Voorsitter sal by die Raad van Trustees se vergadering op 17 April 2014

verkies word. Ons sal die uitslae van die verkiesing in ons volgende nuusbrief bekend maak. Besoek gerus die Fonds se webtuiste by www.vurf.co.za vir die jongste Fonds- en industrienuus. Dit is belangrik dat lede op hoogte bly van die jongste verwikkelinge wat hul aftrede in die toekoms raak.

Ek vertrou dat jy die inligting insiggewend sal vind.

Brenda KrummeckHoofbeampte

Liewe LidDear Member

To ensure an income (pension) when a person retires, government has changed the law to make the current provisions more effective.

On 1 March 2015, the Taxation Laws Amendment Act No. 31 of 2013 will change how your contributions will be taxed and make retirement payouts between pension, provident and retirement annuity funds the same.

It means that if you are a member of the Provident Fund, this change in law will have an effect on how your retirement savings (Member Share) will be paid out at retirement after 1 March 2015.

If you retire before 1 March 2015 – what will your retirement benefit be?Pension Fund: When you retire, a maximum of 1/3rd of the Member Share can be paid as a cash lump sum. However, if your Member Share is R75 000 or less, the full amount may be paid out in cash.

Provident Fund: When you retire you may take the full Member Share in cash, or choose to buy a monthly pension.

How will your retirement benefit pay out if you retire after 1 March 2015?Pension Fund: When you retire, a maximum of 1/3rd of your Member Share can be paid as a cash lump sum. However, if your Member Share amounts to R150 000 or less, the full amount may be paid out in cash.

Provident fund: When you retire, a maximum of 1/3rd of the Member Share can be paid as a cash lump sum. However, if your Member Share amounts to R150 000 or less, the full amount may be paid out in cash.

To protect your vested rights (that is the value of your provident fund benefit up until 1 March 2015), only your contributions after 1 March 2015 will be affected by this change in the law. You may still take all your retirement savings plus growth that accumulated before 1 March 2015 as a cash lump sum at retirement.

Important – if you are already age 55 or older on 1 March 2015 you will not be affected by this change and your total Member Share can be taken as a cash lump sum at retirement.

CHANGES IN THE LAW– how will this affect your retirement benefit?

Ten einde 'n inkomste (pensioen) te verseker of aftreebesparings te verbeter wanneer iemand aftree, het die Regering sekere veranderinge aan die wet aangebring om die huidige bepalings meer effektief te maak.

Op 1 Maart 2015 gaan die Belastingwysigingswet Nr. 31 van 2013 verander en die manier hoe bydraes belas word, wysig om die struktuur van pensioen-, voorsorg- sowel as uitree-annuiteitsfondse dieselfde te maak.

Dit beteken dat indien jy 'n lid van 'n voorsorgfonds is, sal hierdie wysiging ‘n invloed hê op hoe jou lidbelang uitbetaal word as jy ná 1 Maart 2015 aftree.

Indien jy voor 1 Maart 2015 aftree – hoe sal jou aftreevoordeel uitbetaal word?Pensioenfonds: Wanneer jy aftree, mag nie meer as 1/3 van jou lidbelang as 'n enkelbedrag uitbetaal word nie. Indien jou lidbelang egter R75 000 of minder beloop, kan die volle bedrag in kontant geneem word.

Voorsorgfonds: Wanneer jy aftree, kan jy kies om die volle lidbelang in kontant te neem, of 'n pensioen daarmee aan te koop.

Indien jy na 1 Maart 2015 aftree – hoe sal jou aftreevoordeel uitbetaal word?Pensioenfonds: Wanneer jy aftree, mag nie meer as 1/3 van jou lidbelang as 'n enkelbedrag uitbetaal word nie. Indien jou lidbelang egter R150 000 of minder beloop, kan die volle bedrag in kontant geneem word.

Voorsorgfonds: Wanneer jy aftree, mag nie meer as 1/3 van jou lidbelang as 'n enkelbedrag uitbetaal word nie. Indien jou lidbelang egter R150 000 of minder beloop, kan die volle bedrag in kontant geneem word.

Ten einde jou gevestigde regte (die waarde van jou voorsorgfondsvoordeel tot en met 1 Maart 2015) te beskerm, is net die bydraes ná 1 Maart 2015 aan hierdie veranderinge onderhewig. Jy kan steeds al jou opgehoopte aftreespaargeld vóór 1 Maart 2015, plus groei as 'n enkelbedrag by aftrede neem.

Belangrik – indien jy reeds 55 jaar en ouer is op 1 Maart 2015, is jy nie aan die veranderinge onderhewig nie en jou totale lidbelang kan as 'n enkelbedrag by aftrede geneem word.

VERANDERINGE IN DIE WET – hoe raak dit jou aftreevoordeel?

Retirement:Member younger than55 years on 1 March 2015

Retirement:Member older than 55 yearson 1 March 2015

Total benefit can be taken as a lumpsum upon retirement.

Accumulated before 1 March 2015 Accumulated after 1 March 2015

Member is required to buy a pension with at least 2/3rds of the benefit. Up to 1/3rd of the benefit may be taken as a cash lump sum. If an amount is less than or equal to R150 000, member can take entire benefit as a lump sum.

Total benefit can be taken as a cash lump sum upon retirement for contributions to the same retirement fund as at 1 March 2015.

Benefit plus growth may be taken as alump sum.

Benefit pay-outs from provident funds from 1 March 2015: Uitbetaling van voordele uit voorsorgfondse vanaf 1 Maart 2015:

Aftrede:Lid jonger as 55 jaar op1 Maart 2015

Aftrede:Lid ouer as 55 jaar op1 Maart 2015

Voordeel plus groei kan as enkelbedraggeneem word.

Totale voordeel kan by aftrede as 'nenkelbedrag geneem word.

Opgehoop vóór 1 Maart 2015 Opgehoop ná 1 Maart 2015

Lid is verplig om met ten minste 2/3 van die voordeel ‘n pensioen aan te koop. Tot en met 1/3 van die voordeel kan as enkelbedrag geneem word. As die bedrag minder of gelykstaande aan R150 000 is, kan die lid die volle voordeel as 'n enkelbedrag neem.

Die totale voordeel uit bydraes tot dieselfde aftreefonds soos op 1 Maart 2015, kan by aftrede as 'n enkelbedrag geneem word.

Let us look at examples where 3 members retire at different ages and what their retirement benefits will be before and after 1 March 2015:

Kom ons kyk na voorbeelde waar 3 lede op verskillende ouderdomme aftree en hoe hul aftreevoordeel aan hul uitbetaal sal word voor en na 1 Maart 2015:

JAYBEEBenefit at retirement – R450 000 which includes:Accumulated Member Share before 1 March 2015 - R270 000(Provident Fund - Cash lump sum)Accumulated Member Share after 1 March 2015 - R180 000(Pension Fund - At least 2/3 must be used to buy a pension)

SUNBEEBenefit at retirement – R100 000 which includes:

Accumulated Member Share before 1 March 2015 - R60 000 (Provident Fund - Cash lump sum)

Accumulated Member Share after1 March 2015 = R40 000 (Pension Fund)

Since the accumulated Member Share is less than R150 000 the total benefit may be taken as a cash lump sum.

FEEBEE(age 56 years on 1 March 2015)

Benefit at retirement – R450 000 which includes:Accumulated Member Share before 1 March 2015 - R300 000 (Provident Fund)Accumulated Member Share after 1 March 2015 = R150 000 (*Provident Fund)*Since Feebee is older than 55 years on 1 March 2015, she is not affected by the change in legislation and may take her total Member Share of R450 000 when she retires as a cash lump sum.

JAYBEEAftreevoordeel – R450 000 wat saamgestel is uit:Opgehoopte Lidbelang voor 1 Maart 2015 - R270 000 (Voorsorgfonds - Enkelbedrag)Opgehoopte Lidbelang na 1 Maart 2015 - R180 000 (Pensioenfonds - Ten minste 2/3 moet gebruik word om ‘n pensioen aan te koop)

SUNBEEAftreevoordeel – R100 000 saamgestel uit:Opgehoopte Lidbelang voor 1 Maart 2015 - R60 000 (Voorsorgfonds - Enkelbedrag)Opgehoopte Lidbelang na 1 Maart 2015 = R40 000 (Pensioenfonds)Aangesien die opgehoopte Lidbelang minder as R150 000 is, kan die totale lidbelang as ‘n enkelbedrag geneem word.

FEEBEE(56 jaar oud op 1 Maart 2015)

Aftreevoordeel – R450 000 wat saamgestel is uit:Opgehoopte Lidbelang op 1 Maart 2015 - R300 000 (Voorsorgfonds - Enkelbedrag)Opgehoopte Lidbelang na 1 Maart 2015 = R150 000 (*Voorsorgfonds)*Aangesien Feebee ouer as 55 jaar is op 1 Maart 2015, word sy nie deur die verandering in wetgewing geraak nie en kan sy haar totale lidbelang van R450 000 as ‘n enkelbedrag neem wanneer sy die Fonds verlaat.

PROVIDENT

PROVIDENT PENSION

PROVIDENTREMEMBER: The benefit at retirement is still paid to you in total; it is just the way that it is paid to you at retirement that is different. If you are a pension fund member, the retirement benefit payment remains the same.

ONTHOU: Die voordeel by aftrede word steeds in totaal aan jou uitbetaal; dit is net die manier waarop dit met aftrede aan jou uitbetaal word, wat verander. Indien jy 'n pensioenfondslid is, bly die betaling van aftreevoordele steeds dieselfde.

JayBee

SunBee

FeeBee