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

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

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

4. 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

5. 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

6. 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

7. 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 income @ 50%: 6.72% / @ 75%: 5.85% @ 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

8. The Graduate Backpack The case for income & lump sum benefits Let’s look at the GEPF disability benefits E.g. a nurse/teacher earning R17 000 p.m. SILSS Distribution SupportGraduates 10 years service More than Less than Lump sum Income 15.5% x 204 000 x 9 x 4/3 R379 440 15.5% x 204 000 x 9 x 4/3 R379 440 6.72% x 204 000 x 20 R274 176 6.72% x 204 000 x 20 R274 176 (1/55 x 204 000 x 20) + R360 R6 212 p.m. (1/55 x 204 000 x 20) + R360 R6 212 p.m. 36.5% of monthly income Not even 2x annual income Permanent disability only

9. 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

10. The Graduate Backpack The case for income & lump sum benefits GEPF – financial planning gaps Risk benefits – quote R17 000 p.m. 4 year-Teacher/Nurse Diploma 40 anb Income protection benefits  Sickness benefit R14 450 p.m. (Nurse)  Temporary disability benefit R14 450 p.m. (Teacher)  <10 years service - extended disability income benefit R14 450 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 65.70 R 154.01 R 211.06 R 188.50 R 120.27 R 69.75 Graduates SILSS Distribution Support

11. 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 R29 166 p.m. R16 666 p.m. Liberty as at January 2015 Old Mutual as at April 2015 Graduates SILSS Distribution Support

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

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

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

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

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

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

18. The Graduate Backpack The case for income & lump sum benefits