Currently Univen employees have the option of choosing either a 65% or 75% as pensionable salary. The University Council has now approved an additional option of 55%. All Univen employees are now provided a window of opportunity to reconsider their pensionable salary options. Employees can choose their preferred pensionable salary option, and in so doing, they should consider:
• Tax implications
The choice of pensionable salary will affect your PAYE (employee’s tax). Please consult your nearest SARS office or a registered tax practitioner for further advice.
• Current and future retirement savings
The level of pensionable salary chosen will affect your retirement savings. A lower retirement contribution will result in a smaller retirement payout, and vice versa. In order to sustain the same standard of living after retirement, you should balance your current standard of living and post retirement standard of living. Please consult a certified financial planner to help you understand the implications of your retirement savings choices.
• Your pensionable salary directly affects the following benefits:
o Bonus savings
o Group Life death benefit payout
o Group life disability monthly payment
o Spouse cover death, benefit payout
This means that the lower your pensionable salary, the lower your contributions to these benefits, and therefore the lower the actual payout of said benefits you will receive.
• Take home salary
Your choice of pensionable salary further determines your net salary. Please be aware that when you change your % pensionable salary, it will change your take home pay. You may request a dummy payslip from the HR Helpdesk or via email through your HRBP to see how your net salary will be impacted. These will only be available from the 25th February 2021.
You are required to indicate your choice and submit your forms for processing no later than 10 March 2021.
Visit www.univen.ac.za/hr/ to download application forms.
Mrs. U Ndou
Director: Human Resources