LA Retirement Fund Actuarial Valuation as at 30 June 2017 - - PowerPoint PPT Presentation

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Feb 07, 2023 172 likes •283 views

LA Retirement Fund Actuarial Valuation as at 30 June 2017 Presenter: Sean Neethling Valuator Membership statistics 30 June 2017 5 000 30 June 2016 30 June 2017 3 951 4 000 3 730 Number of members 3 000 2 000 1 478 1 463 1 000 0 4

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LA Retirement Fund

Actuarial Valuation as at 30 June 2017

Presenter: Sean Neethling Valuator

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Membership statistics 30 June 2017

1 478 3 951 1 463 4 3 730

1 000 2 000 3 000 4 000 5 000 DC active members Living Annuitants Pensioners Number of members 30 June 2016 30 June 2017

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Statistics – year ending 30 June 2017

5 10 15 20

LA cont. Member cont. Contract ee cont. DB fund return DC fund return Inflation Pension increases

18.0 9.0 7.5 2.6 3.6 5.1 4.0 % p.a.

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Investment returns allocated – DC Section

3.1 5.0 5.6 7.8 1 2 3 4 5 6 7 8 9

Years ending 30 June 2017

% p.a. Accumulation Portfolio Consolidation Portfolio Preservation Portfolio Cash Plus Portfolio

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Financial condition – DC Section

Financial Condition 30 June 2017 R 000 30 June 2016 R 000 DC Section Net assets of the DC Section 1 911 937 1 960 970 Members' Share Account (1 867 824) (1 953 190) Living Annuity Account (17 062)

Contingency Reserve Account

(10 059) (8 700) Processing Error Reserve Account (16 992) 920 DC Section surplus Funding level before reserves 102.4% 100.4% Funding level (DC Section) 100.0% 100.0%

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Financial condition – DB Section pensioners

30 June 2017 30 June 2016 R 000 R 000 Assets of Pensioner Account 1 859 077 1 988 698 Pensioner liabilities (1 762 159) (1 865 989) Solvency Reserve (49 929) (54 918) Surplus 46 989 67 791 Funding level (Pensioner Account) 102.6% 103.5%

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Pension increase and bonus

Pension increase of 3.3% on 1 January 2018 65% of CPI to June 2017 Pensioner bonus of 50% of monthly pension in Dec 2017

0% 50% 100% 150% 200% 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Historical pension increases as a % of CPI

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Historical pension increases (average 72% CPI)

73% 78% 122% 116% 89% 73% 174% 108% 49% 90% 57% 32% 48% 40%54%54% 76% 63% 65% 1 2 3 4 5 6 7 8 9 10 11 12 13 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 % Pension increase CPI

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Summary

Surplus of R47 million in the Pensioner Account Pension increase of 3.3% effective 1 January 2018 Pensioner bonus of 50% of monthly pension paid Dec 2017 Fund in a sound financial condition as at 30 June 2017

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