Consolidated Retirement Fund Actuarial Valuation as at 30 June 2015 - PowerPoint PPT Presentation

An Actuarial Consulting Services presentation to the Consolidated Retirement Fund Actuarial Valuation as at 30 June 2015 Presenters: Sean Neethling: Fund Actuary

Summary statistics Membership – Active and Deferred members 39 232 37 099 2014 2015 6 182 6 960 42.8 42.7 No. of members Salaries (R'm) Average Age (years)

Summary statistics Membership – Pensioners 30 244 29 477 2014 2015 58.2 725 683 65.3 No. of pensioners Annual pensions (R'000) Average Age (years)

Summary statistics – year ending 30 June 2015 9% 7.9% 8% 7.2% 7.1% 7.0% 7.0% 7% 6% 5.5% 5.2% 4.7% 5% 4% 3% 2% 1% 0% Net yield on Return - Return - Return - Pensioner Salary Pension CPI scheme's Growth Moderate Protection Portfolio increases increase assets Portfolio Portfolio Portfolio

Structure of Fund Accounts Member Share Account Pensions Account Preservation - Members’ Shares - Pensioner Liability Pension Account Processing Reserve Account Expense Reserve Risk Reserve Account Data Reserve Account Account

Contribution Rates Total Category A B C D E F G Number of members 39 300 15 704 17 467 1 244 2 800 1 727 26 332 % of membership 100% 40.0% 44.4% 3.2% 7.1% 4.4% 0.1% 0.8% Annual payroll (Rm) 6 960 2 864 2 739 262 710 302 6 77 Contributions as a % of payroll Local Auth. Cont. 18.00 18.00 18.00 18.00 18.00 18.00 18.00 18.00 Less: Death & disability (3.47) (3.00) (5.00) (2.00) - (2.00) (3.00) (0.60) Funeral expenses (0.17) (0.17) (0.17) (0.17) (0.17) (0.17) - (0.17) Expense allowance (0.86) (0.86) (0.86) (0.86) (0.86) (0.86) (0.86) (0.86) Net Local Authority 13.50 13.97 11.97 14.97 16.97 14.97 14.14 16.37 Contribution Plus: Member contribution 9.00 9.00 9.00 9.00 9.00 9.00 9.00 9.00 Available for 22.50 22.97 20.97 23.97 25.97 23.97 23.14 25.37 retirement

Financial Condition 30 June 2015 30 June 2014 R 000 R 000 Pensions Account Market value of assets 637 457 622 536 Pensioner liability (568 426) (552 784) Surplus 69 031 69 752 Funding level - Pensions Account 112.1% 112.6% Member Share Account Assets of the Member Share Account 17 623 061 16 488 416 Members’ Shares – Growth Portfolio (16 854 200) (15 807 300) – Protection Portfolio (140 193) (153 347) – Moderate Portfolio (626 264) (547 815) Processing Reserve Account 2 404 (20 046) Funding level Member Share Account 100.0% 99.9%

Conclusions All the Fund accounts are in a sound financial position Investment returns allocated on average since inception: • Growth Portfolio: 15.3% p.a. (9.0% p.a. real) • Moderate Portfolio : 10.3% p.a. (4.7% p.a. real) • Protection Portfolio: 8.3% p.a. (1.9% p.a. real) 5% (106% of CPI) pension increase on 1 March 2015 Surplus of R69 million in the Pensions Account 100% of monthly pension bonus in December 2015

Thank You!