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.

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

The active membership profile for 2023 was as follows:

Number of members as at 31 December 2022	20 413
New members	4 361
Adjustments	(5)
Less
Withdrawals	2 959
Retrenchments	48
Transfers out	39
Retirements	65
Deaths	43

Number of members 31 December 2023	21 615

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 pensionable pay, 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 2023 the Fund had 1 601 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 2023 the Fund had 15 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 decide which contribution rate to choose

Although the default contribution rate is 3%, the trustees recommend that you make use of the projection calculator to establish the contribution which will best suit your retirement goals. It is important to understand how your choice of member contribution rate will impact these goals. Remember the more you contribute to the retirement fund, the more your pension in retirement will be.

With member contribution choice, are AVC’s still applicable?

AVC remains a useful tool in managing the amount you contribute to the retirement fund. In instances where the gaps between the member contribution choices are more than you are able to contribute, you can use AVC to top up your contribution with an exact rand amount. AVC can also be used if you want to temporarily increase your contribution, and do not want to commit to an that can only be adjusted in the instances referenced below. AVC’s currently in place will not change unless you instruct the Fund different. You can still use AVC’s to contribute a once off amount, for example, when receiving a bonus. Should you wish to make an AVC or a change your existing AVC, please log on to People Connect and complete the Additional Voluntary Contribution instruction, under Manage Personal Contributions. CLICK HERE for a quick reference guide.

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 People Connect, under Benefits.

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: Log on to People Connect and complet the Additional Voluntary Contribution instruction, under Manage Personal Contributions. CLICK HERE for a quick reference guide.

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 zzTFGRetirementFund@alexforbes.com, 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 Summary

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

Nikita Koopman Group Treasurer	Shani Naidoo Group Retail Director	Rolf Walther Retiree	Marc Van Est Retiree	Jonathan Zolty Head of Finance TFG Merchandise Procurement Management
Company Appointed

Andrea Agostini Head of Transport and Engineering	Nazneen Bray Business Partner - VAS & Mobile	Paul Clayford SPA Business Partner	Paul Barnard Chairman of Board of Trustees	Clement Singh Compensation and Benefits Specialist
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, Rolf Walther, Clement Singh

Benefit Sub-Committee

Paul Barnard (Chair), Karde Buys, Caron Harris, Renee New, Samina Miller, Cindy Doyle, Andrea Agostini, Nazneen Bray, Zunaid Kara, Nandi Satula

Financial Accounts Review Sub-Committee

Marc van Est (Chair), Caron Harris, Renee Strauss, Clement Singh

Communication & Education Sub-Committee

Clement Singh (Chair), Caron Harris, Renee New, Fernando Ventura, Samina Miller, Cindy Doyle, Karla Otto, Caryn Kenny

Governance and Risk Sub-Committee

Jonathan Zolty (Chair), Marc van Est, Caron Harris

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	Alexander Forbes Financial Services (Alexforbes) 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 Graviton Wealth Management 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

Active Members

Additional Voluntary Contributions: Log on to People Connect and complete the Additional Voluntary Contribution instruction, under Manage Personal Contributions. CLICK HERE for a quick reference guide.

Benefit Option Counselling Video

Click play on the video below to learn more about the options available to you when you leave the fund.

Benefit Option Form

Funeral and Death Claim Form for Employee

Funeral Claim Form for Husband, Wife or Child

Member Investment Switch Form

Retirement Option Counselling Video

Click play on the video below to learn more about the options available to you when you retire.

Retirement Quote Request Form

Retirement Option Form

TFG Retirement Fund Membership Opt In: Log on to People Connect and complete the Retirement Fund Opt in instruction, under Manage Personal Contributions. CLICK HERE for a quick reference guide.

Additional Voluntary Funeral Cover: Log on to People Connect and complete the Additional Voluntary Funeral Cover application, under Benefits. CLICK HERE for a quick reference guide.

Deferred Members

Benefit Option Counselling Video

Click play on the video below to learn more about the options available to you when you leave the fund.

Benefit Option Form

Member Investment Switch Form

Retirement Option Counselling Video

Click play on the video below to learn more about the options available to you when you retire.

Retirement Quote Request Form

Retirement Option Form

Deferred Retirees

Life-Stage Election Form

Retirement Quote Request Form

Retirement Option Form

Pensioners

TFG Pensioner (with no spouse) Death Claim Form

TFG Pensioner Death – Qualifying Spouse Information Form

Disability Members

Benefit Option Counselling Video

Click play on the video below to learn more about the options available to you when you leave the fund.

Benefit Option Form

Funeral and Death Claim Form for Employee

Funeral Claim Form for Husband, Wife or Child

Member Investment Switch Form

Retirement Option Counselling Video

Click play on the video below to learn more about the options available to you when you retire.

Retirement Quote Request Form

Retirement Option Form

Additional Voluntary Funeral Cover: Log on to People Connect and complete the Additional Voluntary Funeral Cover application, under Benefits. CLICK HERE for a quick reference guide.

Explanation of Terms

Some of the terms used on this site are seldom used in everyday life, and are therefore not always easy to understand. Here are explanations of some of the commonly used terms.

Actuary	A person who values a fund to determine whether it has sufficient assets to pay benefits.
Adjudicator	The Adjudicator’s purpose is to dispose of complaints lodged in terms of section 30B of the Pension Funds Act in a procedurally fair, economical and expedient manner. The office of the Pension Funds Adjudicator is established in terms of the Pension Funds Act.
Administrator	A company appointed by a fund in terms of an administration agreement, whom the Trustees delegate to assume all the administrative functions of a fund. Administrators are not permitted to control the assets of the fund other than operating the fund’s bank account and keeping safe custody of documents.
Beneficiary	A person who is or becomes entitled to receive a benefit in terms of the Rules and/or the Trustees' discretion.
Commutation	A portion of a pension or annuity that can be taken as a cash lump sum.
Commissioner of Pension Funds	The executive and deputy executive in terms of Section 1 of the Financial Sector Conduct Authority Act. The Registrar regulates the industry and required fund reports regularly, on a variety of topics.
Company	The Foschini Group Limited or subsidiaries (the company).
Compound Interest	Also known as “interest on interest”. Interest is earned on the initial amount, but also on interest earned earlier.
Contributions	Amounts paid or payable by a member and/or his company in terms of the Rules of the Fund.
Deferred Member	A member who has terminated his/her services with the company prior to reaching retirement age and is preserving/saving his/her money in the Fund.
Deferred Retiree	A member who retires from the company, but does not need a pension straight away, will not be compelled to retire from the Fund. The member therefore becomes a Deferred Retiree.
Defined Contribution (DC) Fund	A fund where contributions are defined, but where there is no formula to calculate benefits. On leaving, the benefit consists of the total of all contributions made on the member’s behalf, together with the investment returns earned (less costs). In DC funds, members receive either the upside or the downside of investment returns.
De minimis	De minimis is a Latin expression meaning about minimal things. Therefore, in terms of the pension fund it means that if a retiree’s Fund Value is less than a certain amount, they have the option to take their full Fund Value in cash.
Dependant	A person who, in the opinion of the Trustees, is completely or almost completely dependent on the member for maintenance and support. This includes a member of the deceased member’s family who inherits the liabilities and responsibilities of the deceased. (Full definition in the Pension Funds Act.)
Financial Sector Conduct Authority (FSCA)	A statutory body that functions as the regulator for the financial services industry.
Fund Value	The total of the member credit/contributions plus the company credit/contributions. This includes the investment returns.
Paid-up member	A paid up member is any member who has not provided the company with a benefit option form.
Pensionable Pay	The amount of money a member earns per month, on which the contribution is based. This amount is basic salary for Salary Plus employees (Grade 10 and more junior) and 75% of TGP for TGP employees (Grade 9 and more senior).
Pension Supported Housing Loan	In terms of Section 19(5) of the Pensions Funds Act, a fund may grant housing loans to members using their share of fund as collateral, normally through a third-party service provider.
Insured Benefits	A portion of the company’s contributions used to provide members with death, disability and funeral benefits.
Interest Rates and Fund Returns	The Fund’s actuary calculates the investment return from the information received from the Fund’s investment managers on a monthly basis.
Membership of the Fund	All Grade 9 and above full-time permanent employees of The Foschini Group Limited or subsidiaries in South Africa and Lesotho 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 60 to become members of the Fund.
Non-member Spouse	The ex-spouse (ex-husband/wife) of a current member.
Normal Retirement Date	The first day of the month following or coinciding with the member’s normal retirement age.
PF Circular	A Pension Fund Circular issued by the Financial Sector Conduct Authority. It is a practice note, which has no binding power in law. A practice note is issued by SARS.
Pensioner	A person that receives a pension from the Fund.
Pension Fund	A fund, as defined in the Pension Funds Act, which provides pension and/or benefits for members on retirement. A maximum of one-third of the retirement benefit may be taken in cash and at least two-thirds must be taken as a pension, as per the Income Tax Act.
Preservation Fund	Used to preserve or “park” retirement money without it being taxed when people move between jobs. A preservation fund may be either a pension or provident fund. You may only transfer to a Pension Preservation Fund.
Principal Officer	A person appointed in terms of Section 8 of the Pension Funds Act, who may also be a member of the Fund’s Board of Trustees. The Principal Officer is the interface between the Financial Sector Conduct Authority and the Fund, and holds duties similar to a company secretary.
Registrar of Pension Funds	The executive and deputy executive in terms of Section 1 of the Financial Sector Conduct Authority Act. The Registrar regulates the industry and required fund reports regularly, on a variety of topics.
Provident Fund	A fund approved by the South African Revenue Service and registered under the Pension Funds Act. The total benefit at retirement may be taken as a cash lump sum.
Trustee	An elected or appointed member of a Board of Trustees whose responsibilities are outlined in the Pensions Fund Act and the Rules of the Fund.

Financial Reports

Annual Financial Statements

The latest audited annual financial statements were approved and submitted to the Financial Sector Conduct Authority by the deadline as required by the Pension Funds Act.

A copy is available for perusal at the registered office of the Fund, via the Principal Officer.

Valuation Report

The latest valuation report was finalised and signed by the valuator.

A copy is available for perusal at the registered office of the Fund, via the Principal Officer.