Preservation
Fund
FundsAtWork longevity into preservation benefits
The reality is that most people may spend up to 25 years on retirement. However,
a large percentage of members who withdraw from retirement funds and who are entitled to
withdrawal benefits during their employed years, are not properly advised of the options available.
Members who spend their withdrawal benefit are generally unaware of how they are negatively affecting
their eventual retirement benefit, putting them at risk of not having enough money when they retire
to maintain their standard of living.
At Momentum we wish to empower members to plan, control, monitor
and achieve their retirement goals. The primary purpose of the FundsAtWork preservation fund is to
give members the option of preserving their accumulated benefits for retirement after they leave an
employer, and at the same time allowing them access to cash before retirement if an emergency arises.
Another major advantage of a preservation fund is that when the member transfers the withdrawal
benefit, it is transferred without having to pay tax.
Automatic preservation
One of the recommendations for government's proposed National Social Security Fund (NSSF) is that
employees will have to preserve their retirement benefits when moving jobs. We are preempting this
requirement by offering automatic preservation. The premise of automatic preservation is simple.
When a member leaves the FundsAtWork umbrella fund and gives no instructions regarding their benefit
we will automatically preserve it in the FundsAtWork preservation fund. The option and portfolios
that the member was invested in stay the same.
Options
The FundsAtWork preservation funds offer the same four options as the umbrella fund: Founder,
Narrator, Provider, and Entrepreneur.
Members on the FundsAtWork umbrella fund can continue with the FundsAtWork preservation fund when
they leave their employer. Going into the FundsAtWork preservation fund the member is placed in the
same option they enjoyed under the FundsAtWork umbrella fund. The member then has the freedom to move
to any other option at any time. If members join the FundsAtWork preservation fund from another fund
they choose the initial option and also have the freedom to move at any time. FundsAtWork has selected
a range of investment portfolios that match the investment requirements of each option.
Founder Founder is the product option with no investment flexibility. A guaranteed portfolio is available in this option.
If you require investment flexibility you can move to the Provider, or Entrepreneur option.
Narrator is the option that follows Momentum's house view on retirement benefits; the
life stage investment portfolio invests the member's assets in portfolios that are appropriate given
their number of years to retirement.
Provider is the option where we introduce flexibility. It is appropriate for members who have
more complex needs or need a degree of flexibility.
Entrepreneur is the open architecture choice, appropriate for members who are highly financially
sophisticated and require the ability to structure specific and unique investment profiles using a
selection of unit trusts and Momentum portfolios.
The investment portfolios available for each option are:
Web applications
FundsAtWork offers web applications that allow members to transact electronically. Please call our client
contact centre at 0860 65 75 85 to register for access to our secure site.
Member cellphone and email notifications
Members are able to subscribe to our sms and email notifications to receive valuable event driven
notifications about their benefits and transactions. To subscribe phone our client contact centre on
0860 65 75 85.
Insurance benefits
Any member, under the age of 55, transferring from the umbrella to the preservation fund can take up, within
90 days, an individual policy from Momentum Myriad with the same amount of cover, with minimum hassle and at a
competitive price.
The insurance products offered are:
- Lump sum death benefits
- Lump sum disability benefits
- Income disability benefits
- Dread disease / trauma lump sum benefits
In addition, members under the FundsAtWork preservation fund will receive the funeral benefit base under the
Family Protector at no additional cost if they moved from the FundsAtWork umbrella fund.
Family Protector
We realise the emotional strain placed on people in planning for death or disability. To maintain the lifestyle
that their family is used to, we have designed the Family Protector to provide basic payouts to cover funeral
expenses, educational needs and continuation of health cover in the case of a member's death or disability.
Members who take out individual insurance policies will be entitled to the education benefits base and health
premium waiver base under the Family Protector at no additional cost if they moved from the FundsAtWork umbrella
fund.
