LA Retirement Fund Actuarial Valuation as at 30 June 2017 - PowerPoint PPT Presentation

LA Retirement Fund Actuarial Valuation as at 30 June 2017 Presenter: Sean Neethling Valuator

Membership statistics 30 June 2017 5 000 30 June 2016 30 June 2017 3 951 4 000 3 730 Number of members 3 000 2 000 1 478 1 463 1 000 0 4 0 DC active members Living Annuitants Pensioners

Statistics – year ending 30 June 2017 20 18.0 15 % p.a. 9.0 10 7.5 5.1 4.0 3.6 5 2.6 0 LA cont. Member Contract DB fund DC fund Inflation Pension cont. ee cont. return return increases

Investment returns allocated – DC Section 9 7.8 8 7 5.6 6 5.0 5 % p.a. Accumulation Portfolio 4 3.1 Consolidation Portfolio 3 Preservation Portfolio 2 Cash Plus Portfolio 1 0 Years ending 30 June 2017

Financial condition – DC Section Financial Condition 30 June 2017 30 June 2016 DC Section R 000 R 000 Net assets of the DC Section 1 911 937 1 960 970 Members' Share Account (1 867 824) (1 953 190) Living Annuity Account (17 062) - Contingency Reserve Account (10 059) (8 700) Processing Error Reserve Account (16 992) 920 DC Section surplus 0 0 Funding level before reserves 102.4% 100.4% Funding level (DC Section) 100.0% 100.0%

Financial condition – DB Section pensioners 30 June 2017 30 June 2016 R 000 R 000 Assets of Pensioner Account 1 859 077 1 988 698 Pensioner liabilities (1 762 159) (1 865 989) Solvency Reserve (49 929) (54 918) Surplus 46 989 67 791 Funding level (Pensioner Account) 102.6% 103.5%

Pension increase and bonus Pension increase of 3.3% on 1 January 2018 65% of CPI to June 2017 Pensioner bonus of 50% of monthly pension in Dec 2017 Historical pension increases as a % of CPI 200% 150% 100% 50% 0% 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Historical pension increases (average 72% CPI) 13 Pension increase 57% 12 CPI 11 10 9 122% 89% 8 116% 90% 78% 76% 73% 32% 7 % 40%54%54% 73% 6 63% 65% 49% 48% 5 108% 4 174% 3 2 1 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Summary Surplus of R47 million in the Pensioner Account Pension increase of 3.3% effective 1 January 2018 Pensioner bonus of 50% of monthly pension paid Dec 2017 Fund in a sound financial condition as at 30 June 2017

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