TFG Retirement Fund

Fund Info

The TFG Retirement Fund (the “Fund”) is effectively a “savings plan” established by your company to help you save for retirement.

It is a defined contribution pension fund. This means that each month both you and the company contribute a percentage of your salary to the Fund. You are also allowed to make Additional Voluntary Contributions to the Fund. Defined contribution means that the benefit you receive (be it through retirement or otherwise), depends mainly on how much you have accumulated in the Fund. This is called your Fund Value.

The contributions you accumulate in the Fund will earn investment returns for you, so that you are able to receive a reasonable pension one day when you have retired and you are no longer earning a salary.

The main aim of the Fund is to provide you with the greatest likelihood of securing a reasonable pension at retirement. The Fund therefore aims to achieve superior investment returns on your Fund Value and keeps costs to a minimum.

It also aims to provide support for you and your family in the event of your disablement or death whilst being an active member of the Fund.

Who does the Fund belong to?

The TFG Retirement Fund is a separate legal entity, which is registered (registration number 12/8/10150) with the Financial Sector Conduct Authority (“FSCA”). The FSCA ensures that the Fund is managed and administered in accordance with the Pension Funds Act and related legislation. The Fund is also approved by SARS ("South African Revenue Services"), which means that there are certain tax concessions when contributions are paid to the Fund and when benefits are paid by the Fund.

Since the Fund is a separate legal entity from the company and it operates and exists solely for you and your dependants, it belongs equally to you and the company. Through the election of Trustees, both parties have a say in how the Fund is run.

Fund Membership

Active Members

All Grade 9 and above full-time permanent employees of The Foschini Group Limited or subsidiaries in South Africa will automatically become members of the Fund at the start of their employment.

Full-time permanent employees Grade 10 and below, may join with immediate effect or at any time thereafter. However, membership becomes compulsory after 24 months of continuous employment.

Permanent employees who work variable hours (flexitimers) may join the Fund, provided that they have 3 months of continuous service. However, membership becomes compulsory after 27 months of continuous employment.

Fixed term/contract employees, as a result of their employment contract, are not entitled to join the Fund.

All new employees must be under the age of 65 to become members of the Fund. Click here for more on the steps you need to take as a new member.

Be sure to read the Active Member Guide for all aspects of membership.

The active membership profile for 2020 was as follows:

Number of members as at 1 January 2020	13 506
New members	3 071
Less
Withdrawals	1 545
Retrenchments	135
Transfers out	73
Retirements	20
Deaths	27
Transfers from active to deferred membership	57
Number of members	14 720

Disability Members

All employees that are members of the Fund are covered under a policy with an insurer. The monthly Income Protection Benefit amounts to 75% of monthly Total Guaranteed Package (TGP), subject to capping and evidence of health limits, as well as other policy conditions as determined by the insurer.

A disability member is a member who is in receipt of the monthly Income Protection Benefit. Contributions to the Fund will continue. The benefit will be paid from the date the claim is approved until such time that the member recovers and is able to return to work, or until such time that he or she passes away or reaches normal retirement age.

TFG Pensioners

A Pensioner is a retired member who is in receipt of a pension from the Fund.

Click here to read more about being a TFG Pensioner.

As at 31 December 2020 the Fund had 998 Pensioners.

Deferred Members

A deferred member is a member who has left the company’s employ and has exercised an option to preserve his/her benefit in the Fund.

A deferred retiree is a member who has retired from the company’s employ, but has not yet made an election with respect to their retirement benefit, and as such, is preserving their benefit in the Fund.

Click here to read more about being a Deferred Member.

As at 31 December 2020 the Fund has 241 Deferred Members.

Contributions

Active and Disability Members

Only Active Members and Disability Members make contributions to the Fund.

TFG Pensioners and Deferred Members do not contribute.

Monthly contributions are made by you as well as by the company.

Member Contribution

Members of TFG Retirement Fund will have the option to choose their member contribution rates.

The opportunity to change your contribution rate will be limited.

Please refer to the section “When will you be allowed to exercise this choice?” indicated lower on this page

How to choose your contribution rate?

Your choice of contribution rate will impact your retirement savings. The trustees recommend that members contribute at least 7.5% of their pensionable pay, but recognize that there may by reasons why a member may choose to contribute a different percentage. It is strongly recommended that you understand the impact of your choice on your retirement savings by making use of the projection calculator.

Will I still be able to make AVC’s?

With effect from 1 March 2021, when members will be given a choice of their member contribution rate, there will be no change to AVCs. AVC’s are still available to allow members to contribute the exact amount they would like to in the event that their choice of contribution percentage does not equate to the rand amount they would like to contribute. AVCs can continue to be used to contribute a once off amount, for example, when receiving a bonus. Should you wish to make a change to your AVC, please complete the form.

AVC Form

When will you be allowed to exercise this choice?

Note that the opportunity to change your contribution rate will be limited. You will be able to change your contribution in the following situations:

		In the month following an annual or an off cycle increase;
		In the event of a promotion or demotion;
		When a member goes on and returns from Maternity leave;
		When a member goes on Disability;
		A change in member’s working hours or pay structure;
		Family events, specifically marital status changes or the birth of a child, and within 3 months of such event taking place;
		Such other exceptional circumstances as may be approved by the Trustees on application to the Trustees.

How am I able to exercise this choice?

Choose your member contribution % on the My Pay calculator on your HR Connect profile.

Company Contribution

Am I allowed to contribute more?

You are allowed to save more into the Fund. This is known as making Additional Voluntary Contributions (AVCs) which will be deducted from your salary. AVCs are extra amounts that you may elect to save monthly or as a once-off lump sum from your bonus, in order to increase your retirement benefits. You may stop the monthly AVC at any time.

In addition, you are able to transfer any lump sums due to you by your previous company’s fund into the TFG Retirement Fund. You may also transfer a benefit you have in a preservation fund, to the TFG Retirement Fund.

Ask the administrator of your previous company’s fund or the preservation fund you belong to, to email the TFG Fund Administrator, who deals with transfers, for assistance with the transfer process.

Why should I make additional contributions?

There are many benefits to making AVCs towards your retirement savings in the Fund, such as:

Did you know?

You can claim a tax deduction for all contributions you make towards retirement savings, up to 27.5% of your total salary package, subject to a maximum of R350 000 per tax year. This includes any AVCs that you make.

Amounts that you cannot deduct this year, you can deduct in future years or at retirement.

ALL contributions (to ALL pension funds, provident funds, and retirement annuities) form part of the tax-deductible 27.5% mentioned above. Read more about how you can benefit by making AVCs to the Fund:

How to make additional contributions

Step 1: Use the AVC Tax Calculator below to determine the total amount that you can contribute to receive the tax benefit.

Use the AVC Tax Calculator and take advantage of this tax-efficient benefit.

Step 2: Download the AVC form, complete it, and send it to fuse@tfg.co.za

Additional Voluntary Contribution Form

Transfers In

You are able to transfer any lump sums due to you by your previous company’s fund into the TFG Retirement Fund. You may also transfer a benefit you have in a preservation fund, to the TFG Retirement Fund.

Ask the administrator of your previous company’s fund or the preservation fund you belong to, to email the TFG Fund Administrator at fuse@tfg.co.za, for assistance with the transfer process.

Can you transfer fund's from the following:

Preservation Fund - YES
Your previous employer's fund - YES
Retirement Annuity - NO

Benefits of transferring:

no transfer fees
low administration fees
consolidation of your money
preservation until retirement

IMPORTANT! You cannot use your money unless you resign, are dismissed, retrenched or retire. The funds are invested in terms of the Fund's rules, click the link for more information regarding the investment http://bit.do/How-your-money-is-invested

Active Member Guide

Fund Management

The Fund is managed by a Board of Trustees. The Trustees are responsible for all Fund decisions that are made and have to ensure that members’ and beneficiaries’ interests are protected at all times. They are all suitably qualified individuals, and they have access to retirement industry experts and specialists where necessary.

The Board is supported by the principal officer, who is appointed by the Board, but who must be approved by the Registrar of Pension Funds. The Principal Officer is responsible for:

• the day-to-day management of the Fund;
• ensuring that all statutory requirements are met;
• ensuring that the Fund complies with the law; and
• carrying out all the decisions taken by the Trustees.

The Principal Officer is also the official contact person of the Fund, both for members and regulators.

Principal Officer
Caron Harris

Caron Harris was appointed as Principal Officer with effect from 1 June 2016.

Meet the current Board of Trustees

The Board of Trustees:

Five are member elected by members. The other five are company appointed by the company.

Member Elected

Carin Wiese Retired	Rolf Walther Head of Finance: Foschini Division	Jonathan Zolty Head of Finance TFG Merchandise Procurement Management	Marc Van Est Retired	Amanda Samuels Systems and Reporting Manager Human Resources
Company Appointed

Andrea Agostini Head of Transport and Engineering	Nazneen Bray Head of Finance: Retail Technology Division	Paul Barnard Chairman of Board of Trustees	Clement Singh Compensation and Benefits Specialist	Senta Morley Chief People and Culture Officer
The Trustees hold office for a maximum of five (5) years. However, company Trustees can remain in place for more than five years if reappointed by the company; and member Trustees if re-elected by Fund members. All Trustees have a fiduciary duty to act in the best interests of the members.

Specialist Committees of the Board of Trustees

The Board of Trustees meet quarterly to attend to matters of the Fund.

Over and above the Board of Trustees, in order to facilitate the smooth running of the Fund, the Trustees have set up four specialist committees that deal with the operations relating to specific areas of expertise. The Principal Officer is a member of all committees. The specialist committees make proposals and recommendations to the Board of Trustees, for approval, before implementation.

The specialist committees of the Board are:

Investment and Strategy Sub-Committee

Paul Barnard (Chair), Caron Harris, Marc van Est, Faeza Chowglay, Rolf Walther, Clement Singh

Benefit Sub-Committee

Paul Barnard (Chair), Karde Buys, Caron Harris, Nazleemah Karlie, Amanda Samuels, Renee New, Faeza Chowglay, Cindy Doyle, Andrea Agostini, Nazneen Bray, Natalie Lumley

Financial Accounts Review Sub-Committee

Marc van Est (Chair), Caron Harris, Renee Strauss, Lauren Tiplady, Faeza Chowglay, Clement Singh

Communication & Education Sub-Committee

Clement Singh (Chair), Caron Harris, Renee New, Fernando Ventura, Faeza Chowglay, Cindy Doyle, Patricia Plaatjies, Renee New

The Benefit Sub-Committee has monthly meetings. The Investment and Strategy Sub-Committee meets quarterly, as does the Communication & Education Committee. The Financial Accounts Review Committee meets annually.

Service Providers

Although the Trustees are all extremely competent, they have a duty to seek professional advice where they may not have certain expertise. The Board of Trustees receives assistance from a range of industry experts and specialists.

The Trustees thank the service providers for their continued support and advice.

Service	Provider & Function
Actuary/Valuator	Mr Johan Geldenhuis of Alexander Forbes Financial Services Ensures the Fund is in a sound financial position and that the assets match the liabilities.
Administrator	Foschini Retail Group (Pty) Ltd Responsible for the day-to-day administration duties of the Fund. The team in the retirement services department makes sure that contributions are received on time, your Fund Value is invested, and benefits are paid out.
Auditor	Deloitte and Touché Checks that the financial statements have been prepared in terms of the Regulatory Reporting Requirements for Pension Funds.
Banker & Housing Loan Provider	First National Bank Handles the Fund’s banking needs.
Communication Consultant	Simeka Consultants & Actuaries Advises the Trustees on member communication.
Financial Advice Providers	Alexander Forbes Financial Services and Simeka Wealth The Trustees appointed the following Financial Advice Providers to assist members close to retirement with financial advice and retirement planning at no cost to members.
Fund Consultant	Alexander Forbes Financial Services Provides expert advice to the Trustees on all general Fund matters including the management of the Fund and the benefits provided by it.
Investment Consultants	Willis Towers Watson Advises the Trustees on the Fund’s investment strategy.

Fund Rules & Policies

The Fund is managed according to a set of Rules, which have to comply with the requirements of the Pension Funds Act. The Rules of the Fund are registered with the FSCA and approved by SARS. The FSCA ensures that the Rules comply with all the requirements of the Pension Funds Act.

Certain sections in the Rules have to be changed from time to time, often because of legislative changes. These changes (or amendments) will be communicated to members as and when they happen.

A copy of the Rules of the Fund is available, at a fee, upon request via the registered office of the Fund.

Smart Calculators

When you have a financial goal, you can plan your future.

These calculators can help you plan for a better retirement.

	AVC Tax Calculator Calculate the amount of Additional Voluntary Contributions (AVCs) you can contribute to the Fund, which you can deduct for tax purposes. Note this calculation can only be used by contributing members.
	Projection Calculator The Projection Calculator uses specific assumptions to calculate whether or not you will have sufficient capital at retirement to meet your retirement needs. Note this calculation can only be used by contributing members.
	Tax Calculator Here you can calculate the amount of tax that you are estimated to pay at resignation or retirement.
	Personal Budget Tool Download your Personal Budget Tool and start paving your way to success.

Calculator Disclaimer

The calculators found on this website are customised and incorporate long-term assumptions that have been approved by the TFG Retirement Fund Board of Trustees. The calculators found on external websites use their own assumptions which are not TFG Retirement Fund specific and therefore the results may differ.

The calculators and models on this site are based on certain reasonable assumptions, which may or may not be borne out in reality.

Fund Forms