What is an Annuity?

An Annuity is a contract agreed upon by a retiree and the retirement fund or an insurance company detailing how monthly pension payments would be made to the pensioner for the rest of his or her life.

When a member retires, he or she has the option to either buy a monthly pension (annuity) from the BPOPF or from an insurance company…

What is Pre-retirement Switch?

Members closer to retirement have a lower ability to take risk. In case of a loss they may not have sufficient time to recover before they retire. Their objective is, therefore, to preserve what they have accumulated over the years. To achieve this objective their money is invested in a Conservative Portfolio.

From April 2014, the…

What happens if a member dies?

When a member passes on, the whole benefit is paid out to the beneficiaries. BPOPF/ Employer undertakes investigations that will detemine the apportionment of the member’s accumulated pension to the beneficiaries.

Can a pensioner with a bank account opt to be paid pension on the BancABC prepaid Cash Card?

Yes! There are pensioners who are still paid with cheques and these pensioners are highly encouraged to use prepaid cash cards for their convenience. Nevertheless, those who are being paid through their Banks can also use cash cards if they are interested.

What is the benefit of AVC in relation to tax?

Additional voluntary contribution is the contribution that a member decides to contribute towards pension on top of the compulsory 5%. This would mean a higher pension deduction and the remaining salary is taxed.

When will Tshomarelo Member Choice portfolio be made available to members?

The Tshomarelo Member Choice portfolio will be made available to members from 01st October 2023.

Does this mean that the Pre-Retirement Switch Portfolio is no longer available to members from age 42?

The Pre-Retirement Switch portfolio is still an option for qualifying members (Age 42 and above or 3 years before the planned retirement age). As they approach eligible age for retirement, members are provided with an option to switch into a Tshomarelo Member Choice portfolio or the Pre-Retirement Switch portfolio. It is the Trustees’ “Best Advise” for Members to switch into the Tshomarelo Member Choice portfolio five years or the Pre- Retirement Switch portfolio three years before their planned retirement date.

Who is eligible to join the Tshomarelo Member Choice portfolio

Any member who is 40 years and above. However, best advice is to switch at 5 years before planned retirement age.

What are the advantages of switching to Tshomarelo Member Choice portfolio.

Members get the opportunity to gradually reduce the risk exposure of their fund credit. The members get to achieve moderate returns which are higher than that of the Pre- Retirement Switch portfolio.

What are the risks of switching to the Tshomarelo Member Choice portfolio.

The returns would be typically lower than the Active portfolio given that it’s a less aggressive strategy. The members do not have an option to switch back to the Active portfolio once they get to this portfolio. The portfolio is not as conservative as the Pre-Retirement Switch.