On retirement, members receive accumulated credit e.g. the member’s full contribution and the employer’s contribution towards retirement and the full fund interest. Members should note that from the employer’s contribution, the fund deducts a certain percentage for risk benefits and its expenses.
The Fund remains committed on its communication approach of creating much needed awareness on the need for members to remain invested with the Fund as early withdrawal of these funds have an impact on members’ values upon retirement.
As much as two thirds of the population in South Africa reach retirement age without adequate private provision and therefore rely on state-provided social age grant (National Treasury: 2007). This is the reason, amongst others, that after various negotiations between the unions and employers in the security industry, the PSSPF was established in an attempt to prevent destitution particularly in old age or in case of the death of a breadwinner.
From the Fund’s perspective, it is imperative that members understand that the purpose of this fund is to provide retirement income to members and their families at a time of need and assist in alleviating poverty and the dependency on state social security programmes.