What Happens to Your Contributions?

Newsletter   •   Quarter 2   •   2021

WHAT HAPPENS TO YOUR CONTRIBUTIONS?

In preparation for your own retirement, all permanent full-time salaried employees of Woolworths and Woolworths Financial Services must be members of the Woolworths Group Retirement Fund.
Member contribution
7,5%
The member contribution rate of your pensionable salary
Contributions are based on your pensionable salary. Your pensionable salary is calculated as 70% of your Total Cost of Employment (TCOE). Your full member contribution is allocated to your retirement savings.
Employer contribution
10,5%
The employer contribution rate of your pensionable salary
The employer contribution is allocated towards:
  • your retirement savings,
  • the cost of the insured risk benefits (death and disability income benefit), and
  • all Fund expenses, including administration, consulting, auditing, legal and communication fees, etc.
New rates
The new rates have come into effect from 1 March 2021 and will not impact your net take-home pay.
Why are the risk premiums increasing this year?
We review our risk premium rates annually and consider factors like:
  • Changes in the occupation, age, gender or salary distribution of our members.
  • The number of claims submitted versus the number of premiums received.
The main factors contributing to increased risk premium rates on our scheme this year are:
  • An upward trend in the number of claims.
  • An increase in the average age of our members.
  • The COVID-19 pandemic and its impact on the scheme.

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