A guide to 10X Benefit Statements

Your benefit statement gives you crucial insight into what your benefits will be when you retire, become disabled or pass away.

This article breaks down the eight parts of the 10X benefit statement and explains how they should be interpreted. We recommend downloading your benefit statement so you can check your own fund information and benefits while reading this article.

How to access your benefit statement

Log into My10X using your I.D number. You will be sent a One Time Pin (OTP) to the cell phone number that we have on record for you.

Once you’ve logged in, click on your investment and then go to ‘Documents & Forms’ and click on ‘Benefit Statements’.
Now that you have your statement let’s get into it.

Part 1: Member details and period of the statement

In this block you have all your personal details and your fund membership details as provided and confirmed by your employer on a monthly basis. Important items to note here have been flagged with orange numbers.

(1) This is the date range for the statement. This date will always be from the beginning of the year to the date the statement is generated (unless you request a statement for a previous year).

(2) The date marked by number 2 shows when you joined the fund. When we review the investment ‘from inception’ this is the date we are using.

(3) This is your normal retirement age as confirmed by your employer. This date is used for retirement calculations such as projecting how much you may have when you retire – refer to part 7 of this document.

Part 2: Investment reconciliation for the period

The investment reconciliation block is a summary of your investment account from the beginning of the statement period up to the date of the benefit statement. We start by carrying forward the fund value from previous period (1), adding the total net contributions that were invested for the period (2) (refer to Part 3 for more detail), adding any transfers received from other retirement funds and invested during the period (3) and then finally adding your Net Investment Return (4) (refer to Part 4 for more detail). 

Transfers received and invested prior to the start date of the statement will be included in the opening investment value.

Part 3: Contribution review for the period
How much money has been contributed into your retirement investment?

The above table shows how much money has been added to your fund value for the period of the statement. Depending on the rules set up by the employer, contributions are made by the members-only or employer only or by both member and employer.

To get to the total contribution for investment amount, we start with the total gross contributions made to the fund (1). This is calculated as a percentage of the member’s pensionable salary.

We then add any additional voluntary contributions that have been made to the fund (2). Finally, we subtract the total premiums paid for all the group risk benefits (3), the 10X administration fee (4) and the consulting fee which is only applicable if the employer uses an external fund consultant (5).

If you have any questions regarding your contributions and deductions please speak to your payroll department or send an email to clientpayroll@10x.co.za.

Part 4: Investment review for the period
How much has your investment grown by during the period?

This section shows how your investment portfolio has performed and the impact of the asset fees had on it during the statement period.

(1) The gross investment return is the growth or loss your investment has made over the period.
(2) The asset fee impact shows how much your return has been reduced by the 10X asset fees.
(3) If your company uses an independent investment consultant or advisor, the impact of the fee will be shown here.
(4) The net investment return is the amount that is ‘earned’ (added to) or ‘lost (subtracted from) your fund value.

Part 5: Investment review since inception
How much has your investment earned since you joined 10X?

This section is similar to previous part except this part shows the performance from the date (1) you joined the 10X fund.

Part 6: Investment Portfolio Asset Allocation
Where is your money invested?

This section will indicate in which investment product you are invested.

Members on the default glidepath and more than 5 years from normal retirement age will be invested in the 10X High Equity until they start nearing retirement. They are then automatically moved into less volatile products with more defensive assets. Refer to the 10X investment portfolio sheet for more detail on the different investment portfolios and how they are constructed as well as the glidepath.

If you would like to opt out of the default glidepath follow these steps:
1. Log into My10X using your ID number
2. Click on your investment
3. Scroll to ‘Portfolio’
4. Click on ‘Switch
5. Download and complete the switch form
6. Email the form to benefitadmin@10x.co.za

If you are having problems logging into My10X please email clientsupport@10x.co.za.

You must always consult with a qualified advisor should you wish to change to any other investment portfolio.

Part 7: Projected benefit at retirement in real terms
What are your savings likely to be worth (in today’s money) when you retire?

The above projected-retirement investment values are illustrative values at normal retirement age based on your current investment value, net contributions being made to the fund. This excludes any investment that you might have in any other investments.

Keep in mind that future returns cannot be guaranteed, and past returns are not an indication of future returns. You must always consult with a qualified advisor.

The Retirement Investment (1) amount shows what your final lump sum savings amount could be depending on the investment risk profile (low, average or high returns).

The Monthly Income (2) number shows how much income you will receive each month once you retired at your normal retirement age. This is based on the amount you have saved and the assumption of the number of years you will need your income for.

Finally, your Income Replacement Ratio (3) shows how much of your current salary will be replaced by your ‘Monthly Income’ (2) in retirement. We recommend that you aim for at least an income replacement ratio of 70%.

Part 8: Benefit Details
What happens if you change jobs, become disabled or pass away?

The above table is important to understand. If anything is unclear, please speak to your HR manager.

(1) Withdrawal benefit: This is the amount you can withdraw from your retirement savings at resignation, retrenchment or dismissal. We recommend you preserve it and do not withdraw it as cash. Any benefit taken in cash will be subject to tax.

(2) Retirement benefit: This is the investment amount that is available to you to purchase a pension at either early, normal or late retirement, should you be older than 55. Provident fund members can commute the whole benefit in cash. Pension fund members may only commute a maximum of one-third of their investment amount in cash. Any portion taken in cash is subject to tax.

(3) Death Benefit: This is calculated as a multiple of your annual salary plus your investment value.

(4) The Disability Benefit (PHI – Permanent Health Insurance) is the monthly income benefit that you may receive should you become disabled and benefit is approved by the insurer. The benefit is a percentage multiplied by your annual salary.

(5) The Disability Benefit (DIS – Capital lump sum benefit) is a benefit that is lump sum that is paid on permanent and total disability.

(6) Funeral cover is a funeral assistant benefit paid on the death of the member, member’s spouse and member’s biological and legally adopted children. The benefits for the children will be a scaled benefit based on the age of the children.

(7) Dread Disease benefit is a lump sum benefit paid to the member should the member be diagnosed with a predefined dread disease as per the insurer’s policy.

(8) Spouse’s Cover (Capital) is a lump sum paid to the main member on the death of a spouse

(9) Spouse’s Cover (Pension) is a pension that is paid to a spouse should the main member pension die.

You will not necessarily have all of the above benefits listed on your statement. Only the benefits where the fund is facilitating the payment of the benefits will reflect on this statement. The insurer’s policy terms and conditions will always prevail should any benefit on this statement not reflect correctly.

The risk benefits might be restricted to either the insurer’s free cover limit or the member’s previously accepted covers. Any queries regarding any underwriting requirements must be referred to 10X.

Need assistance?

Understanding your benefit statement is the first step towards taking control of your finances and securing a comfortable retirement for yourself.

If there is anything you do not understand please don’t hesitate to contact us by emailing: clientservice@10x.co.za

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