Prescient Group Retirement Annuity Fund

What is the Prescient Group Retirement Annuity (RA)?

The Prescient Group RA is a flexible, transparent and cost-effective solution for an employer facing the challenge of providing retirement savings for their staff members.  As an employer, you may wish to encourage your staff to make provision for their retirement.  The Prescient Group RA offers employees the benefit of having an individually owned retirement annuity fund which is set up for them by their employer with Prescient.

How does the Group Retirement Annuity work?

Each employee individually applies to become a member of the Prescient Retirement Annuity Fund (RA) by completing the necessary application form.  At the end of every month, each member’s agreed monthly contribution is received by Prescient from the employer on a group basis.  As individual members of the Prescient RA, members choose their investment portfolios, and receive quarterly statements.


The employer deducts the members’ (employees’) contributions from their salaries and pays the contributions in bulk via EFT (electronic fund transfer) to the Prescient Group Retirement Annuity Fund bank account on a regular basis.

Why should I choose the Prescient Group Retirement Annuity Fund?

The Prescient Group RA helps you, the employer fulfil your retirement savings obligation to your employees. You are able to ensure that your employees’ contributions are applied to retirement savings (as opposed to paying employees cash as part of their remuneration package and placing the onus on them to make provision themselves). It also enables more effective management of your employees’ long-term savings liability.

What are the benefits of the Prescient Group RA ?

Each employee becomes a member of the Prescient RA in their individual capacity. As such, each member must make specific investment choices. This heightens awareness of and makes it clear that it is ultimately the responsibility of each member to save adequately for his/her own retirement.


  • Enables you to offer your staff a tax-efficient, flexible and hassle-free way to save for their retirement

  • Offers members access to a wide range of trustee approved investment options to meet their specific needs

  • Caters for individual needs without the complexity of many group retirement funding arrangements

  • Enables staff to monitor and manage their own retirement savings

  • All fees are transparent and clearly described in the Prescient RA Conditions of Membership

  • Members may transfer their benefits to another approved retirement annuity fund with no penalties or exit fees

  • Members can stop and start contributions without any penalties

  • If an employee resigns, they may continue to be a member of the Prescient RA

Are there tax deductions for employees?

The Fund provides your employees with a tax-efficient, low cost, flexible retirement savings product which is easy to understand.  The contributions made to the Fund will be tax-deductible on an annual basis as follows:


  • Minimum tax deduction: R1 750;

  • R3 500 less any contributions made to a pension fund;

  • 15% of non-retirement funding income (this is the portion of income that is not used as a basis for contribution to retirement savings).


At retirement, members may take up to one-third of the benefit in cash. A portion of this benefit may be tax free, and the rest will be taxed according to the tax table for retirement benefits which is likely to be lower than the member’s tax rate before they retire.

What else do I need to be aware of?

The Terms and Conditions and the rules of the Prescient RA Fund apply to all members, whether their contributions are administered on a group basis or not.  If an employer wishes to make it a condition of employment for staff to contribute to the Prescient RA, the Fund will not be in a position to enforce any contractual obligation of this nature.


In contrast to many occupational retirement schemes, members may not `cash in´ any benefit if they leave their current employer.


Members may only access their accumulated benefit when they retire from the Prescient RA at any date after they reach age 55.


The Prescient RA provides for early retirement (before age 55) only in the event of the member’s permanent disability.

Individual members may appoint, change or remove an appointed financial adviser at any stage by writing to Prescient.Prescient will inform the current adviser of the change. If a member does this, it will take effect after five business days.

It is important to note that there are no insured death or disability benefits available for members of the Prescient RA under the fund. Any risk protection or additional benefits of this nature would have to be sourced and provided separately.

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