The Graduate Backpack The case for income & lump sum benefits GEPF* graduates *Government Employee Pension Fund

The Graduate Backpack The case for income & lump sum benefits The GEPF opportunity SILSS Distribution SupportGraduates

The Graduate Backpack The case for income & lump sum benefits Government Employee Pension Fund SILSS Distribution SupportGraduates

The Graduate Backpack The case for income & lump sum benefits GEPF primary aim – Retirement Benefits SILSS Distribution SupportGraduates GEPF Risk Benefit Summary Death Lump sum  Income X Disability Temporary X Permanent  Dread DiseaseLump sum X

The Graduate Backpack The case for income & lump sum benefits GEPF: Focus on two graduate professions SILSS Distribution SupportGraduates Sickness Benefit NurseTeacher Temporary Disability Income

The Graduate Backpack The case for income & lump sum benefits Let’s look at the sick leave - T&C’s SILSS Distribution SupportGraduates 36 days in a 3-year cycle The employee can possibly qualify for a further 26 days subject to approval by the board

The Graduate Backpack The case for income & lump sum benefits Let’s look at the GEPF disability benefits SILSS Distribution SupportGraduates 10 years service Less than Lump sum More than Lump sum Income Spouse 50%: 6.72% 75%: 75% by reducing income: 6.72% & 1/57) 15.5% x final salary x years of pensionable service x 4/3 6.72% x final salary x increased years of pensionable service (1/55 x final salary x increased years of pensionable service) + R360

The Graduate Backpack The case for income & lump sum benefits Let’s look at the GEPF disability benefits E.g. a nurse/teacher earning R p.m. SILSS Distribution SupportGraduates 10 years service More than Less than Lump sum Income 15.5% x x 9 x 4/3 R % x x 9 x 4/3 R % x x 20 R % x x 20 R (1/55 x x 20) + R360 R6 212 p.m. (1/55 x x 20) + R360 R6 212 p.m. 36.5% of monthly income Not even 2x annual income Permanent disability only

The Graduate Backpack The case for income & lump sum benefits SILSS Distribution SupportGraduates GEPF – financial planning gaps Risk benefits Income protection benefits  Sickness Benefit (Nurse)  Temporary Income Benefit (Teacher)  <10 years service – extended disability income benefit  >10 years service - top-up extended disability income benefit Lump sum benefits  Top-up disability lump sum benefit  Dread disease

The Graduate Backpack The case for income & lump sum benefits GEPF – financial planning gaps Risk benefits – quote R p.m. 4 year-Teacher/Nurse Diploma 40 anb Income protection benefits  Sickness benefit R p.m. (Nurse)  Temporary disability benefit R p.m. (Teacher)  <10 years service - extended disability income benefit R p.m.  >10 years service - top-up extended disability income benefit R8 234 p.m. Lump sum benefits  Top-up disability lump sum + W/L impair benefit R500K  Dread disease Comprehensive R500K R R R R R R Graduates SILSS Distribution Support

The Graduate Backpack The case for income & lump sum benefits Graduates - Rate group advantage 3-year degree / 4-year diploma Sanlam as at September 2015 R p.m. R p.m. Liberty as at January 2015 Old Mutual as at April 2015 Graduates SILSS Distribution Support

The Graduate Backpack The case for income & lump sum benefits GEPF – Teacher (Disability class A) Competitor comparison Graduates SILSS Distribution Support

The Graduate Backpack The case for income & lump sum benefits GEPF Calculator Graduates SILSS Distribution Support

The Graduate Backpack The case for income & lump sum benefits GEPF Calculator current output Graduates SILSS Distribution Support

The Graduate Backpack The case for income & lump sum benefits GEPF Calculator current output Graduates SILSS Distribution Support

The Graduate Backpack The case for income & lump sum benefits GEPF Calculator - proposed output Graduates SILSS Distribution Support

The Graduate Backpack The case for income & lump sum benefits thank you

The Graduate Backpack The case for income & lump sum benefits