Retirement Solutions
Old Mutual’s retirement solutions for small to medium businesses offer
attractive employee benefits, whilst providing cost-effective and comprehensive
administrative solutions. Referred to as “umbrella funds”, the retirement
options on offer are multi-employer funds – funds established for the employees
of various participating employers, compared to a retirement fund that is
established for the employees of one company.
The benefits of an umbrella fund, as opposed to a self-managed or stand-alone
fund, lies in the fact that employers simply “plug in” to an existing
administration and management platform that includes all the components needed
to provide a comprehensive retirement solution.
Orion Retirement Fund
This product is a retirement fund structured along the principles of an umbrella
arrangement where various employers (referred to as participating employers)
come under the auspices of one umbrella fund- called Orion. These participating
employers have no relation to each other – the only point of commonality is that
they are all subject to a set of master rules that governs the operation of
Orion umbrella Fund. What the benefits on offer: The benefits on offer on Orion
are retirement savings, death and disability benefits and a funeral/family
benefit .
1.1 Retirement Savings The retirement saving of an employee comprises two
components- one component stems from the employee contribution and the other
component comes from the Employer. The entire employee contribution is channeled
to retirement savings whilst a portion of the Employer contribution is channeled
to retirement savings.
1.2. Death and Disability Benefits
1.2.1. Orion offers death and disability benefits as part of the integrated
package. Death Cover is based on multiple that ranges between 1- 9 x annual
salary (where members/participation employers have to option to choose a death
benefit based on a minimum of one (1) x up to a maximum of nine (9) x annual
salary).
1.2.2. Disability benefits – participating employers have the option tochoose
between two disability benefits on offer - a lump sum disability benefit and a
disability benefit based on monthly income (PHI). In the first instance, the
member receives a once- off lump sum disability benefit and such a member exit
the fund whist in the second option, the member receives a monthly income set at
75% of his/her monthly income at the date of disablement and the member remains
on the fund.
1.3. Funeral/ Family Benefit
Under this benefit, members belonging to the fund and their immediate family
members are eligible for a funeral cover. Members can choose between three
options as a Funeral Benefit- N$ 5000,00; N$ 10 000,00 & N$ 15 000,00. The main
member, his/her spouse and a maximum number of nine (9) children are eligible to
receive the given benefit chosen. The main member bears the cost for this
funeral benefit.
2. Protekor Preservation Fund
This product enables members who have resigned from a given employer to place
his/her accumulated retirement savings into the Protektor Preservation Fund.
This product enables the member to preserve the accumulated savings and he/she
can furthermore enjoy a tax benefit on this retirement saving placed in the
Protektor preservation fund when reaching retirement age. The additional
advantage of this product is that it allows the member to make cash withdrawals
against his/her retirement savings.
3. OPTI – SELECT
This is a retirement annuity product. Members who have reached retirement age
and must exit the retirement fund, are eligible to purchase a retirement annuity
under the name of Opti- Select. Once the member has purchased this annuity,
he/she then receives a monthly income until his/her death or the annuity monthly
income is paid to his/her surviving beneficiaries.
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