Both you and your employer will be contributing to the Fund. Anything between 7.5% of your Fund Salary to a maximum of 27.5% of your Fund Salary.  Your HR department will be able to confirm how much you will be contributing to the Fund.

The Rules also allow for an inception contribution rate lower than 7.5%, provided:

1. The shortfall rate is covered up by way of periodic (usually annual) raises to 7.5% over 2 years
2. The Employer’s rate is sufficient to fully cover the total applicable monthly costs (risk, and admin)

To what pot will contributions be allocated?

One-third of the total contributions will go to the Savings Pot.  Two-thirds will go to the Retirement Pot.  No contributions will go to the Vested Pot, it will only grow with interest.

If you were born before 1 March 1966 and are still in the same fund as you were on 1 March 2021, your contributions will not be split.

Can I transfer money from a previous fund into The Hospitality and General Provident Fund?

Yes. If you belonged to a Pension or Provident Fund with your previous fund or if you have a Preservation Fund you may transfer your money in that fund to The Hospitality and General Provident Fund.  You can’t transfer from a Retirement Annuity to The Hospitality and General Provident Fund.

The amount you transfer will be credited in full to your Accumulated Retirement Savings.  The transfer will be tax-free.

• Your Retirement Pot in the previous fund will be allocated to your Retirement Pot in The Hospitality and General Provident Fund.
  
  
• Your Vested Pot in your Previous Fund will be allocated to your Vested Pot in The Hospitality and General Provident Fund. However, in some Funds, members had a Vested and Non-Vested share in their Vested Pot. If you do not lose your Vested Share when transferring from your previous fund (please check this with your previous fund), your Vested Share will be allocated to your Vested Share in your Vested Pot in The Hospitality and General Provident Fund and your Non-Vested Share in your previous fund will be allocated to your Non-Vested Share in your Vested Pot in The Hospitality and General Provident Fund. However, you may elect to transfer your Vested Pot in your previous fund to your Retirement Pot in The Hospitality and General Provident Fund.
  
  
• Your Savings Pot in your previous fund will be transferred to your Savings Pot in The Hospitality and General Provident Fund.

However, if you transfer your Vested Pot or Savings Pot from your previous fund to your Retirement Pot in The Hospitality and General Provident Fund, you will NOT have access to that money before retirement once transferred to the Retirement Pot and you cannot transfer back from the Retirement Pot to the Savings Pot or Vested Pot. This substantially reduces access to your money in an emergency and a lump sum portion at retirement.

Can I make additional contributions?

Yes, you are able to make additional contributions to the Fund should you wish to do so. You can cancel these anytime.

• You receive a tax deduction on your contributions towards all retirement funding, up to 27.5% per annum, of remuneration/taxable income. 
• This is subject to a maximum deduction of R350 000 per year – any excess amount can be rolled over and deducted in future years. 

This means that increasing your monthly contributions results in less of your monthly income being taxed! You will also grow your retirement savings so much faster.

How do I make additional contributions?

Contact your Human Resources department, should you be interested in making additional contributions.

Costs deducted from contributions

The fees for administration, communication, and risk benefit premiums (death, disability and funeral benefits) are deducted from the contributions to the Fund.  Click here to read more about the Fund costs.