Hollard Pension Preservation Plan

A tax efficient way to preserve Retirement savings earned in an employer Pension Fund.

Overview

Preserve your retirement savings when you leave your employer’s pension fund

The Hollard Pension Preservation Plan provides a tax-efficient method for you to save the money you receive from your employer’s pension fund when you leave their employ. This could be as a result of resignation, retrenchment, winding up of the pension fund or divorce settlement.

The product is cost effective, flexible and transparent. You as the investor will be able to choose which investment portfolios you invest into, and will be able to change this selection whenever you wish to. The product also allows you to make a full or partial withdrawal from your investment before you retire.

 The Fund's registered name is “The Hollard Wealth Management Preservation Pension Fund” (Registration Number 12/8/37376) and is registered in terms of the Pension Fund Act.

Additional Information

For a summarised overview of the Hollard Pension Preservation Plan click here.

For more detailed information, click here

Investment Portfolio List

Click here to view the list of Investment Portfolios available for selection on the Hollard Pension Preservation Plan.

Hollard Investments Online

Hollard Investments Online is our secure online services portal. It allows you to access your Hollard Investments information in a safe and secure environment. Click here to find out how to register.

Features & Benefits

Features and Benefits of our Pension Preservation Plan

Features and Benefits Product Details
Minimum Investment R50,000
Tax Implications Income tax will be deducted from any benefit taken in cash before it is paid out on withdrawal, retirement or death, in accordance with Income tax legislation. The investment is not subject to Capital Gains tax, Interest Income tax or Dividends Tax.
Death Benefits

Your Pension Preservation investment does not form part of your estate and will not be governed by your last will and testament. In accordance with Section 37 of the Pension Funds Act, the Trustees of the Preservation Fund have full discretion to award death benefits as they feel appropriate. Dependents will be given preference when allocating the benefit in accordance with legislation, after which nominated beneficiaries and your estate will be considered. The benefit due on the death of the investor is the value of the investment at the time of processing the death claim, less any fees and charges. Each party who is awarded a portion of the death benefit will receive it in one of the following ways: 

  • The purchase of a compulsory annuity from a registered long-term insurer.
  •  A cash lump sum pay-out.
  •  A combination of a compulsory annuity purchase and a cash pay-out. 

Any benefits taken in cash will be subject to income tax.

Access to Capital

Investors are entitled to one full or partial withdrawal benefit prior to retirement. If you have already taken a withdrawal from the benefit when it was being managed within another Preservation Fund, you will not be permitted to take another withdrawal after transfer to the Hollard Pension Preservation Plan. Income tax will be deducted from the withdrawal before it is paid out.

Other Product Features
  • Investor choice with regards to selecting and adjusting the investment portfolios you invest into.
  • Protection of your savings by limiting your investment’s exposure to risky assets, in accordance with Regulation 28 requirements.
  • The ability to make a single, full or partial withdrawal from your investment before you retire, without incurring any penalties.
  • A maximum of a third of the value of your investment can be taken as a cash pay-out when you retire. The balance must be used to purchase a compulsory annuity which will pay you an income during retirement.

Product Charges

What will it cost?

Product Details Product Charges

Initial Administration Fee

No initial administration fee is charged.

Initial Management Fee

Certain Managers may charge an initial fee on your investment or switch into an Investment Portfolio. Click here to view a list of funds available for the Hollard Pension Preservation Plan.

Financial Advisor Initial Fee

A maximum fee of 3% excluding VAT.

Annual Administration Fee

A weighted average fee is charged per policy/investment account according to the following fee scale: 

Investment Value Annual Admin Fee (excl.VAT)
From R0.0 to R1 million 0.45%
Next R500 000 0.40%
Next R500 000 0.35%
Thereafter 0.25%

The fee is levied monthly in arrears by deducting units from your underlying Investment Portfolios to the value of the investment account.

Annual Management Fee

Managers charge annual management fees, which are incorporated into the daily unit price of the Investment Portfolio. Click here to view a list of funds available for the Hollard Pension Preservation Plan.

Financial Advisor Annual Fee

A maximum fee of 1% excluding VAT.

FAQs

Pension Preservation Plan FAQs

Find out everything you need to know about the Hollard Pension Preservation Plan.

What is the purpose of the Hollard Pension Preservation Plan?
The Hollard Pension Preservation Plan provides a tax-efficient method for investors to preserve the retirement money received from an employer’s pension fund when leaving their employ. Savings are preserved until retirement at which time the investor will receive a retirement benefit.
How do I invest into the Hollard Pension Preservation Plan?
The following may be transferred to the Fund, subject to the product rules and relevant legislation:
  • A pension fund Benefit transferred in the event of your resignation, retrenchment or dismissal from an employer.
  • A pension preservation fund benefit transferred from another pension preservation fund.
  • A pension fund benefit from a pension fund which has been wound up.
  • A Benefit received as part of a divorce settlement via an approved court order, which the recipient can elect to invest into the Preservation Plan.
What is the minimum investment amount?
The minimum amount required to open an Investment Account is R50,000
What are the tax implications of this investment?
Income tax will be deducted from any benefit taken in cash before it is paid out on withdrawal, retirement or death, in accordance with Income tax legislation. The investment is not subject to Capital Gains tax, Interest Income tax or Dividends Tax.
What underlying investment portfolios do I invest in?
When you open your investment account in the product you will select the investment portfolios into which you wish to invest. You may select any one or a combination of the Investment Portfolios offered, and may switch between funds at your discretion. It is important for you to monitor and review your investment portfolio selection on a regular basis, in order that your investment continues to meet your financial needs.
What is Regulation 28 and how does it affect my investment?
In order to protect a member’s retirement benefit, the Pension Funds Act via the prudential investment guidelines regulates the extent to which a member may invest in certain asset classes. The Administrator is required to ensure that each member’s investment complies with these asset exposure limits, which broadly speaking are as follows:
  • 75% exposure to equities.
  • 50% exposure to non-government debt instruments
  • 25% exposure to offshore assets.
  • 25% exposure to property Each Investment Portfolio offered in the Hollard Pension Preservation Plan to investors complies with the Regulation 28 limits.
Can the investment be used as security?
No, the right to benefits may not be ceded or pledged.
Can the investment be cancelled and does a cooling off period apply?
No, due to the nature of the product, you may not cancel your membership and no cooling-off period applies. You may transfer your investment to another approved Pension Preservation Fund or your employer Pension Fund.
Is the investment guaranteed?
No, the product does not provide a guarantee on the value of your investment account nor does it guarantee the performance of the investment. The market value of the investment account may fluctuate and go down as well as up, and past performance is not necessarily a guide to the future. The investor carries the investment and market risk which includes the possibility of losing capital.
Can I make additional contributions to my investment?
You may not invest additional monies into your investment account. You may open multiple investment accounts should you have benefits from separate employer’s pension funds that you wish to preserve.
Can I withdraw from my investment?
Investors are entitled to one full or partial withdrawal benefit prior to retirement. If you have already taken a withdrawal from the benefit when it was being managed within another Preservation Fund, you will not be permitted to take another withdrawal after transfer to the Hollard Pension Preservation Plan. Tax will be deducted from the withdrawal before it is paid out.
When can I retire and take my retirement benefit?
You may request to retire from the Fund once you have reached the age of 55. You may request an early retirement in the event of permanent disability due to ill-health or illness. Early retirement requests are granted at the sole discretion of the Trustees of the Fund.
What happens when I retire?
A maximum of one third of your retirement benefit may be withdrawn in cash. Tax will be deducted from the withdrawal before it is paid out according to a tax directive issued by SARS. The portion of the benefit which is not cashed out, at a minimum two thirds of the benefit value, must be used to purchase a compulsory annuity from a registered long-term insurer. If the retirement benefit on the date of retirement is R75, 000 or less then you may withdraw the entire benefit in cash, you are not required to purchase a compulsory annuity.
What happens if I pass away?
Your Pension Preservation investment does not form part of your estate and will not be governed by your last will and testament. In accordance with Section 37 of the Pension Funds Act, the Trustees of the Preservation Fund have full discretion to award death benefits as they feel appropriate. Dependents will be given preference when allocating the Benefit in accordance with legislation, after which nominated beneficiaries and your estate will be considered. The benefit due on the death of the investor is the value of the investment at the time of processing the death claim, less any fees and charges. Each party who has been awarded a portion of the death benefit will receive it in one of the following ways:
  • The purchase of a compulsory annuity from a registered Long-term insurer.
  • A cash lump sum pay-out.
  • A combination of a compulsory annuity purchase and a cash pay-out.
  • Any benefits taken in cash will be subject to income tax.
Do I need a Financial Advisor to invest in this product?
It is recommended that you appoint a financial advisor to assist you. The Fund, Hollard Life in their capacity as the Administrator and the Manager do not provide financial advice, and may only supply the investor with factual or administrative information relating to the investment products and portfolios.

Customer Support

Contact details

 Select and complete the form of your choice

  • Select the relevant form from the list below.
  • Print and complete the form.
  • Attach all required documentation.
  • E-mail or fax the completed form to customercare@hollardinvestments.co.za or +27 11 351 3816.

 

First-time Investors Existing Investors
Application form Change of details form
Information document Retirement notification form

Investment portfolio list

Withdrawal form
Product Brochure Switch and rebalance form