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The manner in which Fund staff rose to the demands

of the strategic projects in terms of additional work and


going the extra mile, strongly shows that during the year,
the administration stood as a pillar of strength. Going
forward there can be no other outcome as one of going
from strength to strength with a certainty that EPPF
UNITED will meet all challenges with a vision of success.

PensionerTalk
Message from the Chief Executive
Investment returns Service delivery
Over the past two years much has been written and reported The past financial year has been one of maximum united effort
about the global economic crisis that has negatively affected from EPPF staff. In an effort to improve our service delivery
December 2009

the investment and financial markets both globally and locally. we embarked on a mission to enhance our efforts, training
As the EPPF (the Fund) invests in the markets (some 66% and systems to ensure that we provide best possible service
being in local bonds and equities) we have not been spared to our valued members and pensioners. Based on some of the
the wrath of the market turmoil. As a result the Fund, as with feedback that we received from you during our roadshows
many other funds invested in the markets, has experienced throughout the year, we are definitely on the right track. We
negative investment returns over the past financial year continue to train our call centre staff and administrators and
(1 July 2008 to 30 June 2009) for the second year in continued work on the upgraded administration system will
succession. Based on a review of the available history of the eventually add to our enhanced customer service.
Fund going back almost 25 years to 1 January 1985, this will be

This Issue the first time that the Fund has failed to achieve a positive real
return for a second consecutive year. However, as we have
On a personal note
Looking to the future I regretfully have to announce that I
mentioned many times in the past, the Fund invests for the will be leaving the service of the Fund to take up another
2 Pension increase policy
long-term and if it adheres to its long-term investment strategy challenging position in the retirement fund industry. The
2 EOS it should weather the storm of the current volatility. relatively short time that I have been with the Fund has been
3 Pension Fund Adjudicator’s as challenging as it has been enjoyable. However, I always
retirement funds’ scorecard At this time, the Fund is still in the process of completing the maintained that the organisation is larger than the individual
annual financial report and we will share the Fund’s official and I am confident that the management team will continue
4 Medical aid matters …
results in the next edition of Pensioner Talk. On a positive to carry out its responsibilities in an exemplary manner.
5 Pensioner news … 100 note, the second quarter of 2009 (April to June) was one of
years old – what a milestone! the better performing quarters for the local equity markets I thank you for the opportunity to serve you. I would also
6 Banking details in a while with the All Share index yielding 8.65% - up from like to take this opportunity to thank our Board of Trustees
6 Access to the Witbank offices the previous quarter (although the annualised figures still and staff for all their positive endeavors and commitment
remain negative). These positive signals together with the during my time with the Fund.
7 Death benefits various global stimulus packages, low interest rates and
8 Indwe short-term insurance low global inflation are some signs of a possible economic Good bye. Salani kahle!
recovery. Bonga Mokoena
Editor’s Note
Pension increase policy …
“And in the end, it’s not the years
in your life that count. It’s the life in At the time of going to press it was not yet known what pension increase will be granted to pensioners
your years.” – Abraham Lincoln from 1 January 2010. We do, however, now take the opportunity to share the Fund’s pension increase
policy again with you.
Welcome to the last edition of Pensioner
The Fund’s pension increase policy reads as follows:
Talk for 2009. It’s that time of the year
when we start winding down from a busy “The policy of the Fund is to grant a pension increase on 1 January each year equal to the year-on-year
year and look forward to the joy of the increase in the ‘Headline’ Consumer Price Index (as published by the South African Department of Statistics).
coming festive season. It’s also time to take If the Fund’s investment performance over the period to the
care of some administration issues – like preceding 30 June is such that it cannot afford such an increase, the
medical aid, pensioner increases, policies Trustees will grant, subject to the Rules, a lower increase that can
and others. We have included some be afforded without placing a strain on the Fund.”
information to remind and help you when
sorting out some of these matters. The date of 30 June marks the end of the Fund’s financial year,
which extends from 1 July to 30 June each year.
We hope that you find this edition The Fund’s rules specify that if the annual rate of interest earned
interesting and informative. As always, we on the total Fund monies is less than 6%, then the pension
truly value your feedback so please contact increases will not be less than 2%.
us and have your say.

Warmest regards
Toni Slabbert
Evidence of Survival Forms
- have a safe and joyous It is at this time of the year that certain staff members not received the form, please do not despair, rather phone

festive season and all the best at the Fund eat, sleep and breathe yellow paper! Yes, the
Evidence of Survival (EOS) forms are coming in thick and
the Fund (0860 11 45 48) to find out if we have received
your form in the meantime.
for an exciting 2010! fast through the post, and others are being hand delivered
Unfortunately, it is our experience that forms do
to the Fund’s offices in Bryanston and Witbank.
sometimes get lost in the mail. If the message on your pay
The EOS forms are being captured onto slip still indicates that we have not received your form two
the system as fast as we can. Once or more months after you have posted it, please contact
If you have sent in a week we also return mail any the Fund urgently so that, if need be, we can forward you
your form and not seen incomplete forms together with another form, or fax it to speed up the process.
confirmation please phone
a postage-paid reply envelope
the Fund on 0860 11 45 48 Remember that the dreaded month is April, when the
for your convenience. Messages
to confirm. pension payments are suspended for those pensioners
to indicate whether we have or
from whom we have not received the EOS forms. As the
have not received the EOS forms will
payroll for April closes in the middle of March, in effect
appear in the message block of your pay slip
it means that all EOS forms should reach the Fund well
every month, starting with the December payslips
before the first week of March in order to be captured
(posted end November). As there may be a time delay
on time. Please don’t wait till the last moment, as forms
between the forms arriving at the Fund and the actual
sometimes do get lost in the mail.
capturing of the forms, the message on the pay slip may
not be completely up to date. If you have sent in your So please keep those yellow forms coming, if you have not
form and the message on the pay slip reads that we have already done so!

2 PensionerTalk | December 2009


Burning Issues …

Recent reports from the Office of the Pension Funds


Adjudicator concerning a pension fund scorecard
In this issue of the Pensioner In terms of the recent reports the Adjudicator has used the EPPF compared with the fees (R2.91 per member
the scorecard to name and shame a number of under- per year) payable by the Fund towards the running
Talk, we deliberate on the performing funds. of the Office of the Pension Funds Adjudicator. Full
details of this measurement were not available but it
recent reports in the media What was measured? is clear that this measurement does not take account
Funds were assessed only on a complaints basis. The of the size of the Fund when looking at the number
regarding a scorecard that complaints were categorised in terms of the type of of complaints received. It also disregards the findings
has been put in place by complaint received, the details of the complaint, the on whether the complaints were warranted or not or
quality of the fund’s response, whether the fund made where an Adjudicator determination has been made.
Mamodupi Mohlala, the any attempt to settle the complaint before it reached
the Adjudicator and the outcome of the complaint. The Fund undertook its own audit on the number of
outgoing Pension Funds The Adjudicator reported that the performance of 290 complaints that were lodged against the Fund during
Adjudicator, supposedly to retirement funds that had complaints lodged against the review period. The Fund’s audit established that
them between September 2008 and September 2009 88% of these claims were ruled in favour of the Fund.
evaluate the performance of had been assessed. To place this number in perspective,
it can be noted that there are approximately 6 500 The Fund works very closely with and fully supports
about 290 retirement funds. registered and active retirement funds in South Africa. the Adjudicators office and all queries are responded
to within the time limits given. We invite any person or
Our Fund (EPPF) was apparently also measured in persons who have real issues of concern or complaints,
terms of this scorecard. The EPPF was mentioned with to contact the Fund so that any problems can be
reference to the number of complaints received against solved.

Eppf Executive
Management
Standing from left:
Mr B I Steyn, Mr A Gaqa,
Mr R K Pather, Ms S A
Mosiane, Mr J Buthane,
Mr P Ho, Mr J M Hattingh.
Seated from left:
Ms S Dube, Mr B Mokoena,
Ms P Shuenyane

PensionerTalk | December 2009 3


Medical aid matters …

Medical aid and the New year …


By Sandiso Mgwebi

At this time of the year the medical aid industry Medical aid options and rates contribution from your pension. The same applies
goes through its revision of benefits and rates. This At this time of the year the various medical aid when a pensioner gets divorced from their spouse, and
has to be done in order for you to enjoy proper schemes plan their membership fee increases for when a dependant gets married or employed and they
and relevant cover for your monthly contributions the coming year to take account of rising costs. The transfer to a different medical aid scheme.
and to take account of increasing healthcare costs. planned increases are communicated to the EPPF and
As our pensioner it is important for you to have members by the relevant medical aids. During October, Age exclusion of dependants on medical aid
a medical aid, and the following items are of great pensioners have an opportunity to change their medical The age of a dependant is one of the major
importance. aid options and can also transfer between medical determinants of whether that person should be on
aids (example between Prosano and Bestmed, or the pensioner’s medical aid or not. Anyone who is
Membership and Subsidy vice versa). Requests for option changes and transfers younger than 21 years of age and who is financially
It is advisable that pensioners, provided that they should be forwarded to the Fund first to update dependent on the pensioner should be kept as such
are in a sound financial position, keep their medical the Fund’s systems with the correct data. This is on the medical aid. However, when a dependant
aid membership at the time of retiring from Eskom. important to ensure that correct contributions are paid turns 21 years of age, the following condition will
Eskom pays a subsidy towards your medical aid and monthly to the medical aid schemes. apply for continued membership:
so this may help avoid medical aid contributions • The dependant must still be a full time student.
exceeding your pension income. It is also advisable to Important note regarding communicating with In this case, proof of registration with a recognised
reconsider all the dependants on the medical aid – If your Medical aid on administrative matters institution must be provided, or else the unsubsidised
a pensioner finds the medical aid to be too expensive It is important to note that if a pensioner has any adult rates will apply.
then a pensioner should perhaps consider terminating medical aid query, such as contributions, address • Subsidised cover will continue for dependants who
one of the dependants instead of terminating their changes, registration of a new dependant or termination, are disabled, provided that the relevant required
membership, as a termination of membership decision they must first contact or send documents to the Fund doctor’s reports were provided as proof of disability.
is irrevocable. Please consider your decisions carefully. directly. One of our medical aid administration staff will,
after capturing the information, send those documents Telemed and Bestmed merger
Secondly, any dependants added to the medical aid or requests to the relevant medical aid scheme on the Please be informed that Telemed has merged with
after the member has retired from Eskom are not pensioner’s behalf. Bestmed, and will be known as Bestmed, which now
entitled to the Eskom medical aid subsidy benefit. NB: ANY ACCOUNT RELATED QUERIES – offers about 10 options to choose from.
This means that the pensioner will be liable for the full members must contact their medical aid directly.
monthly contribution for that particular dependant. Important Information
With regard to widows/widowers or any dependants, Medical aid monthly contributions Please contact EPPF staff regarding the following
qualification for the subsidy at the death of the First, it is advisable that pensioners are sure that they medical aid queries:
primary member (an Eskom pensioner) requires that can afford the new contributions when considering a • Registration of a new dependant
they must have been active as dependants on the transfer to another medical aid or changing options. • Termination of a dependant
deceased’s medical aid prior to the death. There have been cases where member’s income does • Option changes
not cover the medical aid monthly contributions. • Address changes
In the event of a death, the widow, widower or This creates problems in the long run as pensioners • Continuation of membership
even child pensioner who is active on the deceased’s are liable for the shortfall. It is also advisable that a • Problems with monthly contributions
medical aid must indicate on the Fund’s claim forms pensioner has some income coming to them after • Deceased dependant
that they wish to continue with the medical aid. They deductions, rather than have their full pension payment
will then be registered on the medical aid option that going towards medical aid contributions. The following are the medical aid
the deceased belonged to at time of death. Please administration staff members to contact:
take extra care when completing these forms because Secondly, members are requested to inform the Fikile – Fikile@eppf.eskom.co.za
if these forms are not fully completed with all relevant Fund about the death of a spouse or a dependant in Mabel – Mabel@eppf.eskom.co.za
requirements then the member will not be registered order for the Fund to assist with the adjustment of Annetjie – Annetjie@eppf.eskom.co.za
on the medical aid. contributions. This will enable us to deduct the correct Or by telephone on (011) 709 7537

4 PensionerTalk | December 2009


Medical aid matters …

Changes to Eskom’s
Supplementary Medical
Expenses Top-up Policy
For those of you who are covered under the
Eskom Supplementary Medical Expenses If you are not
sure whether you have
Top-up Policy, there have been some
supplementary medical cover
changes to this policy over the past year.
please contact the EPPF call
Here’s a reminder. centre for confirmation.

What is supplementary medical cover?


The supplementary medical expenses top-up policy
Admiring the Fund’s birthday cake for Mr Charles Smyth on his 100th birthday is his daughter
covers the difference between the South African Medical Ms Colleen Wilkinson and Mr Bonga Mokoena, Chief Executive of the Pension Fund.
Association (SAMA) rates and the amount covered by the medical aid.

Who is entitled to supplementary medical cover?


Some Pensioner news …
Eskom pensioners who at their date of retirement were entitled
to this cover and elected to continue and pay the premium for the
100 years old – what a milestone!
cover, including members of their immediate families are entitled to
To mark his 100th birthday on 26 October 2009, the Fund’s Chief Executive and
supplementary medical cover. These pensioners can also join after other officials paid a surprise visit to Mr. Charles Smyth, armed with a specially
retirement, if they did not select this option at the time of retirement. baked birthday cake.

Changes since January 2009 Expecting to find a pensioner on his last legs, they were surprised to find a very
From January 2009 most medical aids increased their rates to similar young 100 year old - fit as a fiddle, and still very capable of looking after himself.
levels as the SAMA rates. As a result a reduced amount is payable by How many 100 year old people can still do their own garden and housework?
the Eskom Supplementary Medical Expenses Top-up Policy. And best of all, he drives himself to the nearby sports club in Bryanston for
some social events and the odd game of bowls. The secret to his good health
From 1 January 2009 the Supplementary Medical Expenses Top-up and longevity, he says, is the two tots of whiskey that he drinks every evening.
Policy will only pay 90% of the medical bill in excess of the amount Testimony to this is the fact that he is not taking any medication whatsoever.
paid by the medical aid. However, private ward costs will be fully While having tea with Mr. Bonga Mokoena - Chief Executive, Ms. Penny Shuenyane -
refundable. Retirement Fund Operations Manager and Toni Slabbert - Communication Manager,
Mr. Smyth recalled that he started with the Victoria Falls Power Undertaking
Other terms and conditions will remain the same. in Germiston on 6 March 1926, until it was bought by the Electricity Supply
Commission (which later became Eskom) in 1948. He joined Eskom as a Junior
Documentation required in the event of a claim Clerk in the Accounts Department at Taaibos Power station and retired with 46
• Fully completed claim form years’ service as Senior Accountant at Klip Power Station.
• Front page of hospital bill confirming admission and discharge dates
• Original medical bill Asked about his views on Eskom’s latest proposed price increases for electricity,
he replied: “They should have protected their money, now they’re in a bit of
• Medical aid statement reflecting the part payment of the bill
trouble!”
Exclusions - when will the medical expenses not be reimbursed And one could still see something of the old schoolboyish charm in him by the
The Insurer is not liable to reimburse medical expenses incurred as a result of: way he smiled when they sang, “For he’s a jolly good fellow….”
• Attempted suicide or intentional self-injury;
• Participation in active military duty, police duty, police reservist duty, civil
commotion, labour disturbances, riot, strike or the activities of locked out
workers.
PensionerTalk | December 2009 5
EPPF Contact Details Access to the Fund’s

Administratively
Share costs line: 0860 11 4548
Fax number: 011 709 7529 office in Witbank
Medical Aid Administration: Pensioners in the Witbank area should note
011 709 7535 that access to the Fund’s office in Eskom Park in
Email: info@eppf.eskom.co.za Witbank has recently changed.

speaking
http://www.eppf.co.za The office is still situated in the same building
Moorgate House (House 27, Eskom Park), but access control onto
Hampton Park South the Eskom premises has changed. Pensioners
can no longer use the entrance in Jellico Street
24 Georgian Crescent Bryanston
as it is now a staff-only entrance. Pensioners
Postal Address: Changed your bank account? should please use the new main entrance
Private Bag 50 in Visagie Street. Due to strict new security
Bryanston 2021 Let us know! measures, pensioners are required to show their
pensioner cards to gain access and from time to
If you should change banks or bank accounts, time might be required to sign in at the security
please let the Fund know immediately so we can office. A pension card only allows access for the
update your details on record to ensure that pensioner and not for their family or friends,
your pension is paid without any interruption or who will have to sign in at the security office at
inconvenience. the gate. Please also keep in mind that no pets,
firearms, or intoxicated persons will be allowed
To change bank account details, we need on Eskom premises.
documentation that would prove that it is really
you changing the bank account details and not Parking at the Fund’s office is unfortunately
some fraudster trying to steal your money. limited to the two parking bays in front of the
Therefore we need the following documentation house. If these are taken then visitors would
for bank account details: have to park in the allocated visitors parking at
• An original bank statement for the new the main Eskom building. The covered parking
account, which shows the account number bays across the street from the Fund’s office are
and the account holders name, with an allocated to Eskom employees and may not be
used by visitors. (To have your wheels clamped
INTRODUCING original bank stamp and a bank official’s
would be a real inconvenience, so please don’t
signature on the statement, or
Ms Penny Shuenyane has recently joined even consider parking there. A fine of between
• An original letter from the bank confirming
the EPPF as the Executive Manager of the R50 and R100 is payable to the security office
your new account number in your name,
in the main building to have the car wheels
Retirement Fund Operations Department, with and
unclamped. The whole unclamping process can
the Communication; Contribution Collection & • An original certified copy of the account also be very time consuming.)
Data Maintenance; and Benefits Processing holders ID, and
sections reporting to her.
• A signed letter requesting the change in

VISAGIE
bank account details with your pension
number.

Please note that for your


protection, the Fund needs original
documentation and cannot accept JELLICO
faxes or scanned documents.

6 PensionerTalk | December 2009


Death benefits applicable to pensioners
Death benefit lump sum
A dearth benefit lump sum of R3000 is payable to the
Other relevant information:
beneficiaries, which might include a spouse and/or eligible children
and/or other dependants, if any. • Only biological or legally adopted children of the deceased pensioner qualify for
benefits, not grandchildren and children of relatives.
If a pensioner dies and is survived by a spouse and/or eligible • Children only receive a pension up to age 21. There are no exceptions.
children, the Fund will recalculate a monthly pension based on the
• New widows – pensions for children are also included in the monthly pension
original value of the annual pension at retirement (disregarding
(if applicable).
the amount already paid as a lump sum at retirement) plus all
increases the pensioner received while on retirement. • Widows/widowers will continue receiving a pension if they re-marry.
• Please note that when a Deferred Pensioner passes away, a pension is payable only to
The spouse will receive 60% of the recalculated pension for life, the spouse that he/she was married to at the time of deferring.
plus a further 30% for one child or 40% for two or more children,
• Pensioners who are married by customary law should register their marriages at Home
until they reach the age of 21 years. The spouse’s pension is
Affairs. (This is to determine the rightful beneficiaries for pension benefits.)
payable for life, even if the spouse remarries. Only children under
21 are entitled to receive death benefits. • When applying for death benefits, the Fund needs original certified copies of Home
Affairs printed birth certificates that shows the ID number for children younger than
If a pensioner dies and is survived by one eligible child only, the 16 years.
child will receive 60% of the recalculated monthly pension until For everybody over 16 years the Fund needs certified original copies of the ID.
age 21. • Monthly pensions are paid in advance, so in effect it only becomes due on the first of
If a pensioner dies and is survived only by two or more children, the month. In reality it is paid at the end of the previous month.
they will receive 100% of the recalculated monthly pension until • To prevent fraud, faxes are not considered as valid for banking details changes. For
there is only one child under age 21, then 60% until that last child banking detail changes the Fund needs an original certified copy of the ID as well as a
turns 21. stamped bank statement or letter from the bank.
• Address and contact detail changes can be made either in writing or telephonically with
the Call Centre on the toll free line.
Death after retirement without dependants
If the pensioner has no dependants at the time of death then a • The latest versions of benefit application forms are hosted on the Fund’s website
death benefit is paid as a lump sum to the estate of the deceased (www.eppf.co.za) and/or are available at the local Eskom Human Resources Offices,
and is calculated as follows: or from the Fund.

A lump sum of R3000 is paid.

Plus Important notes to speed up payment of benefits:


• Please notify the Fund telephonically immediately.
The greater of the excess benefit (if any) as defined below:
• Ensure that the death benefit application forms are correctly and fully
Twice the member’s annual pensionable salary at the time completed. (Obtainable from the Fund or Eskom HR offices.)
of retirement less total benefits already paid (lump sum plus • Certified copies are required of: Death certificate, ID of the deceased, ID of
monthly pension) or spouse and eligible children, marriage certificate or lobola note, as well as bank
The member’s annual pensionable salary at the time of certified banking details of the beneficiary.
retirement plus 10% of the member’s final average salary for • Ensure supporting documents are original certified copies with a clear date
ENIGMA SOLUTIONS 011 793 4084

each completed year of pensionable service less total benefits stamp, are not older than three months and are attached to the benefit
already paid (lump sum plus monthly pension paid). application forms.

In the event of any conflict between the information provided in this document and the official Rules of the Fund, the provision of the Rules shall prevail.
The articles and topics discussed in this issue are for information only and do not constitute; or are intended to be; or should not be construed as financial advice. Before taking a decision on whether to choose one
option or product over the other, or embarking on a particular course, it is strongly recommended that a member consult a financial advisor for advise before taking any decision.

PensionerTalk | December 2009 7


Eskom
INDWE