Every year, all retirement funds, including ours, are mandated to pay the Financial Sector Conduct Authority (FSCA) levy and the Pension Fund Adjudicator (PFA) Levy. Our Fund has traditionally deducted them:
- At rates prescribed by the authority,
- Annually in September, and
- Directly from active members’ shares.
Good news for 2023
Thanks to our Fund’s strong financial standing in the Contingency Reserve Account, for 2023, the Trustees have decided not to deduct these levies from members’ shares. This very sound financial position is attributable to a combination of factors including the ongoing growth of the Sanlam Umbrella Fund and consequent increased economies of scale, ongoing tight management of expenses relative to budget, as well as the unusually high bank interest rates being earned.
However, please note that this relief is specific to 2023. Economic variables can change, and our current plan is to resume the usual deduction from member shares in 2024. The Regulator’s current estimate for next year’s combined levies is R26.58 per member.
We urge all Contracted Benefit Consultants to relay this positive update to stakeholders through the participating employers’ Joint Forums.