Actuary
Specialist responsible for certifying that the Fund’s assets match its liabilities, which means there is enough money to pay all the members.

Administration Fees
Fees for the administration of the Fund, usually paid monthly.

Annuity
Pension paid to pensioners, usually on a monthly basis.

Auditor
A person appointed to audit the Fund’s financial statements on an annual basis.

Beneficiary
A person who is or becomes entitled to receive a benefit in terms of the Rules.

Deferred Retirement
If you are a deferred retiree, you remain invested in the same portfolio as at retirement, unless you complete a switch form. No further contributions can be made, and you will no longer be covered for death and disability benefits.

Defined Contribution Fund (DC)
A fund in which contribution rates are fixed. The benefit payable will depend on the costs deducted from these contributions and the returns earned on these contributions.

Dependant 

• A person in respect of whom the member is legally liable for maintenance,
• A person in respect of whom the member is not legally liable for maintenance, if such person:
• was, in the opinion of the Trustees, dependent on the member for maintenance at the time of the member’s death; or
• is the spouse of the member, including a party to a customary union according to customary law or to a union recognised as a marriage under the rites and tenets of any Jewish, Asiatic or other religion; or
• is a child of the member, including a posthumous child, an adopted child and an illegitimate child; or
• A person in respect of whom the member would have become legally liable for maintenance, had the member not died.

Estate
A deceased person’s assets and liabilities (or debts) at death.

Fund Balance
Your total benefit in the Fund. Your Fund balance is a sum that represents the total contributions made on your behalf, together with the investment returns achieved, less Fund expenses.

Inflation 
Inflation is the rate at which the combined price of a basket of goods changes over time. If for example the consumer price inflation is 10% over a 12-month period, it means that a person will pay 10% more for the same products than what he or she would have paid a year ago.

Investment Horizon
Years to normal retirement age.

Investment Portfolio
Combination of asset classes (shares, bonds, cash) and within the asset classes, individual shares and bonds that the investment manager chooses and combines.

Investment Risk
The chance of a portfolio or investment type having negative returns (losing money in any given year).

Normal Retirement Age
63 years. 

Pensionable Salary
Your pensionable salary is as stipulated in your letter of appointment. All benefits you receive are calculated as a percentage or a multiple of pensionable salary and not your Total Cost of Employment (TCOE).

Principal Officer
Person responsible for the day-to-day management of the Fund. He/she also represents the Fund in legal proceedings.

Provident Fund
Fund allowing members to save for their retirement. Similar to a pension fund.

Retirement Annuity
Fund set up for individual members to save for retirement. It has no withdrawal benefit, but members can make monthly contributions. The benefit is available to you at retirement partly in cash and partly to purchase an annuity.

Risk Profile
The amount of risk you are comfortable with and can afford, depending on a lot of factors, the most important one being the number of years to retirement.

Rule Amendments
Changes to the Rules of the Fund.