HOW DO I MAKE A CHANGE?
FIELD STAFF: (i.e. Employees whose earnings include a commission component)
- Field/Sales Staff can change their contribution rate until 12 November.
- To change your contribution rate, please complete and submit the Retirement Contribution Election Form (Field Staff).
OFFICE STAFF: (i.e. Employees who are on a TGP structure)
- Office Staff can make changes to their contribution rate until 14 November on Oracle HRMS by following the steps below.
- Step 1: Log on to Oracle HRMS and select My Self Service (ZA)
- Step 2: Click on Remuneration Package Structuring and select Remuneration Package Structuring again
- Step 3: Select Update Benefits and choose the % contribution you want to contribute (Retirement Selection Employee). Note that the Employer contribution of 3.5% will be added to your Employee contribution.
- Step 4: Click on the Submit button and then the Finish button to ensure that your choice has been saved. A confirmation message will appear on the screen.
THE POWER OF 0.5%
We know that increasing your contribution rate isn’t easy, especially when times are tight! But even a small change can make a big difference. For example, try to increase your retirement contribution each year by 0.5%. Over the long term the impact is huge!
EXAMPLE: Thato, with a TGP of R10 000 per month
- Each year at pay review time, Thato increases his OMEGS contribution rate by 0.5%, and he does this for the next 10 years. After 10 years, his contribution rate is 5% higher than it is at present. Thereafter, he keeps his contribution rate level.
- After 10 years, Thato’s savings would be equivalent to R40,700 higher in today’s Rand value than they would have been if he had not made the increases.
- After 20 years, Thato’s savings would be equivalent to R154 200 higher in today’s Rand value.
- After 30 years, Thato’s savings would be equivalent to R350 900 higher in today’s Rand value.
- After 35 years, Thato’s savings would be equivalent to R496 700 higher in today’s Rand value.
- By simply increasing his contribution rate by 0.5% each year for the next 10 years, Thato would have saved an extra 4.1 times his annual TGP after 35 years!
- Best of all, Thato’s extra R496 700 after 35 years would have cost him less than R175 500 in terms of take-home pay (all in today’s Rand value). This is because of the benefits of compound interest and tax deductions.
Note: these calculations are for illustrative purposes only, and are based on a set of assumptions which may not play out in future.
You can read more about how your contributions work by clicking here.
