Document Sample
					Private Bag X21, Brooklyn Square, 0075 ▪ Docex 340, Pretoria ▪ Tel: 012 452 7111 (switchboard) ▪ Fax: 012 425 4051
Email: ▪ Website: ▪ ▪ FSB no: 12/8/6313/1
Instructions on how to type on this editable form (Please complete the form in pen if you prefer).
1.    Save the form on your computer and then type your details directly onto the form to replace             . To select a
      specific   , please click on it to look like this .
2.    After completing the form, please save again and print. Sign the form where indicated on page 1 and give all three
      pages together with your beneficiary form and ID copy to your Authorised Signatory. To join in a month, the
      Authorised Signatory must send the forms to Alexander Forbes by the 8 of that month.

Participating employer
Member’s surname
Member’s full names
Category of member (X)                          Employee              Candidate attorney           Director            Partner
ID number and tax number                            ID                                         Tax
Date of birth and sex                                                                        Female       Male
Member’s postal address (H) & code
Contact telephone numbers & code                    (H)                                        (W)
E-mail address
Date joined your employer
Date to join LPF & Fund salary pm                                                        R

                                                                                                                              Employee to complete this form; employer to sign
     Member’s contribution 5% of Fund Salary and Employer contribution 5% of Fund Salary, or
     Employer only contributions - please tick %:-            5% or      9% or       10% or      12.5% or        15%
Contribution type for employer only contributions
     Total cost of Employment            Non-contributory          Other (details)
Member’s extra contribution: R                                Employer’s extra contribution: R
I hereby declare that I have read the material provided in respect of the Investment Solutions’ Portfolios offered by

the Fund. I hereby choose to invest my provident fund contributions paid from the date of joining the provident fund
and those of my employer in the investment portfolio as indicated on page 2. I understand that in order to switch my
benefit out of this portfolio, a switch instruction must be completed and forwarded to the Alexander Forbes Call Centre.
I understand that if no portfolio is selected, my contributions will be invested as per the New Trustee
Default Model – Age 65. I understand that my Fund Credit (benefit) will receive direct returns, positive or negative,
which are earned on the investments made in my chosen portfolio. I acknowledge that on retirement or resignation
from the Fund, I will have no further claim against the Fund or my employer apart from the value of the benefit payable to
me in terms of the Rules of the Fund. I indemnify and hold Alexander Forbes and the Fund harmless against any claim of
whatsoever nature arising from my membership of the Fund.
Member’s Signature _______________________________Date                                                        Employer’s
Employer’s Authorised Signatory ________________________ Date
IMPORTANT NOTE: It is a condition of employment that all new employees at a firm join the LPF after 12 months of service
or earlier if preferred. Please refer to pages 2 and 3 regarding the choice of a portfolio.
Page 1 of 3
Surname & initials:

Instructions on choosing an investment portfolio
1. Please select either the New Trustee Default Model–age 65 (default model) on the LEFT OR a
     specific portfolio under Individual Member Choice on the RIGHT.
2. If you do not exercise a choice, your contributions will be invested as per the New Trustee Default
     Model–Age 65.
NEW LPF TRUSTEE DEFAULT MODEL-AGE 65                                    or INDIVIDUAL MEMBER CHOICE (tick)
          Starting Point: Highest risk portfolio                                   IS Moderate Balanced
    IS Moderate Balanced       From age 18 to age 55
                                                                                   IS Conserver
   Automatic switch at age 56 to a lower risk portfolio
                                                                                   IS Real Return Focus
        IS Conserver           From age 56 to age 59
                                                                                   IS Banker
   Automatic switch at age 60 to a lower risk portfolio
                                                                                   Oasis Crescent Balanced High
    IS Real Return Focus       From age 60 to age 62
                                                                                   Equity FoF (Shari’ah compliant)

   Automatic switch at age 63 to lowest risk portfolio
                                                                            Please tick here to receive electronic, daily
              IS Banker                From 63 to retirement
                                                                        investment information from Investment Solutions
In the context of this form, risk typically describes the possibility that an investment may fluctuate over time, i.e. the
degree of unpredictability in the return of the investment. Being willing to accept a higher level of risk often means that
investors can achieve a greater potential return on their investments over the long term.
Notes on the New Trustee Default Model – age 65
1. Members can choose the default approach which is called the New Trustee Default Model – Age 65.
2. In this investment model, members’ savings are invested in portfolios according to their ages and time to
    retirement. For younger members their money is invested in portfolios with high equity exposure. This is
    because historically portfolios with higher equity levels have generated better results over longer terms.
    The investment portfolios for older members closer to retirement are designed to preserve the capital
    and investment gains underlying the investment. Therefore, switches in portfolios are conducted as part
    of an overall strategy and not in an attempt to time the investment markets.
3. The participating member’s benefits and future contributions will be switched during the month in which
    he reaches the relevant number of years to retirement.
4. The Trustees review the investment strategy of the model continually, and will make periodic changes to
    the underlying investments in line with the objectives of the strategy.
Assumptions underlying the New Trustee Default Model–age 65
Before choosing to follow this investment model, please consider its underlying assumptions to satisfy yourself
that they are reasonable in relation to your situation.
1. You will probably retire at around age 65 – if you plan to retire well before or after this age, the model
      may not be appropriate.
2. If you were to resign, you would preserve your money for your ultimate retirement.
3. You are comfortable to accept negative investment returns over short measurement periods whilst you
      are still some way off retirement.
4. You want to provide for a cash (money-market investment) or similar benefit at retirement. The model
      may not be appropriate if you plan to invest in an investment portfolio with an aggressive mandate (high
      equity content).
If a member requires investment advice on which investment portfolio is most appropriate for his or her needs, this can be obtained from the
Alexander Forbes Individual Advice Centre. The member must contact the Centre on the number 0860 103 294 and ask to speak to one of
the Financial Planners who has been dedicated to giving “Infund advice” for the Legal Provident Fund.
Page 2 of 3
  I/S MODERATE        I/S Multi-Asset Class Portfolio Range
    BALANCED          The objective of the portfolio is to outperform the large manager median by selecting an
    Moderate risk     optimal combination and deliberate number of asset managers. Although there are fixed
  Balanced profile    asset allocation bands for the different asset classes, the asset allocation will depend on
                      market conditions prevailing at the time. This portfolio is a moderate risk portfolio and
                      more aggressive than the Conserver portfolio from an asset allocation point of
                      view. The equity exposure will vary between 45% - 75%, the bond exposure will vary
                      between 15% - 35% and the cash exposure will vary between 5% - 25%.
 I/S CONSERVER        I/S Multi-Asset Class Portfolio Range
     Lower risk       This portfolio is managed within what Investment Solutions regards to be conservative
  Balanced profile    investment parameters. A lower allocation to equities allows for a higher allocation to local
                      and global bonds and cash. The equity exposure will vary between 30% - 50%, the bond
                      exposure will vary between 30% - 55% and the cash exposure will vary between 15% - 40%.
    I/S REAL          I/S Real Return Portfolio Range
 RETURN FOCUS         This portfolio is managed conservatively and the use of derivative instruments to
   Lower risk         protect the downside forms an integral part of the investment process. As a
                      result, Investment Solutions would expect this portfolio to be less volatile than the
                      Conserver portfolio. No investment guarantees are however provided. The investment
                      managers selected for this portfolio are given specific mandates aimed at providing a
                      pre-tax investment return of 6% (or post tax 4.5% to 5%) above inflation over any
                      three-year rolling period.
   I/S BANKER         I/S Fixed-Income Portfolio Range
 Capital protection   The specialist investment managers selected for this portfolio may invest in money-
                      market instruments and cash. Money-market instruments are liquid financial
                      instruments that basically simulate cash, but often give a higher return. The managers
                      are given specific mandates aimed at providing an investment return above the
                      average of money-market portfolios, while maintaining a high degree of liquidity and
                      capital preservation. They may only be exposed to institutions with an A1 (F1) credit
                      rating or better.
OASIS CRESCENT        The underlying investments of this portfolio are managed in accordance with the principles
BALANCED HIGH         of the Shari'ah, the sacred law of the religion of Islam.
EQUITY FUND OF        The Oasis Crescent Balanced High Equity Fund of Funds portfolio targets CPI + 3%
     FUNDS            after deduction of fees. The objective of the portfolio is to provide moderate capital
   Aggressive         appreciation and the portfolio targets an equity range between 60% and 75%.
 Notes on Investment Solutions Portfolios:
 1. The portfolios comply with the Prudent Investment Guidelines set out in Reg. 28 of the Pension Funds
     Act. There are no investment guarantees.
 2. Please refer to the Investment Solutions Website ( under “Institutional
     Investors” for more information and the investment returns on the portfolios.
 3. Members may switch benefits between portfolios. Alexander Forbes allows one free switch per year.
     Subsequent switches in the year will be charged.
 4. If a member is uncertain as to which is the right choice for him or her, it is recommended that he or she
     talk to a financial advisor
Page 3 of 3
 Private Bag X21, Brooklyn Square, 0075 ▪ Docex 340, Pretoria ▪ Tel: 012 452 7111 (switchboard) ▪ Fax: 012 425 4051
 Email: ▪ Website: ▪ ▪ FSB: 12/8/6313/1

 Participating employer:
 Member’s surname & first names:

 Please read the notes on page 2 before completing this form.
                                               TABLE 1: DEPENDANTS
               Automatically includes your spouse and both major and minor children. Percentage can be “0%”.
                    Please refer to IMPORTANT NOTES on page 2 for the full definition of a dependant.
         Full names and surname                  Date of Birth Relationship        Contact number / town        %

 Total                                                                                                         100%
                                       TABLE 2: BENEFICIARIES (nominees)
                               Excludes your spouse and both major and minor children.
                      Please refer to IMPORTANT NOTES on page 2 for the definition of a beneficiary .
     Tick here for unapproved life cover benefit (only partners/directors/trustees are eligible)
        Full names and surname              Date of Birth Relationship         Contact number / town            %

 Total                                                                                                         100%
 I, hereby wish to nominate the above-mentioned person(s) to receive any death benefits payable in the
 proportions indicated. In the event of any of the person(s) predeceasing me, it is my wish that their shares
 should be apportioned among my surviving nominees.

 Member’s signature: ______________________________________________ Date:
 I have not omitted any dependants and I undertake to submit a new form if my situation changes.

 Witness: _________________________ Name: _________________________ Date:
 Page 1 of 2          Please turn over for “SPECIAL CONDITIONS”.

FSB Registration No: 12/8/6313/1 | SARS Approval No: 18/20/4/30686
 Member’s surname & initials:
 SPECIAL CONDITIONS (Please write in this section. If you need more space, please add extra pages)

 The Trustees have a duty under the Pension Funds Act to apportion the benefits equitably between your
 dependants. Therefore, they will only distribute benefits to any nominated beneficiaries once the needs of
 the dependants have been met.The benefits do not form part of your estate and as such cannot be distributed
 in terms of a will.
 What is a dependant?
 A dependant in relation to a member, means:
 i.   a person in respect of whom the member is legally liable for maintenance;
 ii. a person in respect of whom the member is not legally liable for maintenance, if such person
      – was, in the opinion of the board, upon the death of the member in fact dependent on the member
         for maintenance;
      – is the spouse of the member, including a party to a customary union according to Black law and
         custom or to a union recognized as a marriage under the tenets of any Asiatic religion;
      – is a child of the member, including a posthumous child, adopted child and illegitimate child;
 iii. a person in respect of whom the member would have become legally liable for maintenance, had the
       member not died.
 What is a beneficiary?
 A beneficiary is a natural or juristic person who is not financially dependent on you but you would still like
 this person to receive a part of your LPF benefit. The LPF Trustees will distribute the benefits to nominated
 beneficiaries only if the needs of the dependants have been met.
 Step 1: List your dependants’ details in Table 1 on page 1
 1. List the details relating to your spouse (if applicable) in the first column. If you have more than one
     wife, a customary law wife or a life partner, please include these details.
 2. List all your children (both major and minor), including those adopted, from previous marriages or born
     outside of marriage.
 3. List any legal dependants, such as a divorced spouse from a previous marriage to whom you are
     paying maintenance, or anyone else who receives financial support from you (for example an aged
     parent, a family member or even a friend).
 Step 2: Allocate (share) the benefit
 After you have listed all your dependants, you need to decide the percentage (if any) of your benefit you
 would like to allocate to each. To do this, please allocate a percentage of the total benefit to each
 dependant in the last column of the table. Keep in mind that -
 – Not everyone on the list needs to have a share allocated to him/her. You can specify “0%”.
 – The total percentage must add up to 100%.
 Step 3: List details of any beneficiaries in Table 2 on page 1
 A beneficiary is not a dependant but you would still like him or her to receive a part of
 your benefit.                                                                                       Employer
 Step 4: Give a motivation under “SPECIAL CONDITIONS” (page 2)
 To assist the Trustees to distribute your benefit as fairly as possible, you can
 provide them with an explanation on why you have proposed certain share allocations to
 your beneficiaries.
Page 2 of 2

FSB Registration No: 12/8/6313/1 | SARS Approval No: 18/20/4/30686

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