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PPS Personal Pension (Retirement Annuities)

(Unit Trust based, No Penalties on premium reduction, cessation of premiums or tranfers to other funds, and in transparent, flexible and cost-effective investment products)Home - PPS - PPS Investments - Retirement & Savings - Personal Pension

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PPS Investments - Professional Provident Society

The PPS Personal Pension is an individual pension fund which allows you to take charge of planning for your post-retirement financial security. It provides an ideal way for you to build retirement capital while remaining completely in control of your investment, within a structured and tax-efficient framework.

The flexible design of the PPS Personal Pension is particularly suited to members who are self-employed or who have irregular earning patterns, as you are able to stop, reduce and resume contributions into your fund at any time without incurring any financial penalties.

While access to funds invested in retirement annuities is restricted to a minimum age of 55, the tax deduction on contributions and the removal of retirement tax within the fund are significant benefits which apply from inception. These benefits have the effect of enhancing the capital intended to fund your post-retirement living expenses. You may retire sooner if you are permanently disabled due to injury or illness. You are required to retire from the fund before your 70th birthday.

Upon retiring, you may withdraw one third (currently no more than R120 000 or R4 500 x years of membership which will be taxfree), and use a minimum two thirds of the capital to purchase post-retirement income from a registered insurer.


Investment options

The range of PPS Preferred Funds offers a selection of multimanaged PPS unit trusts that provide clearly defined underlying investment choices. We also give you the choice of a selection of top-performing single manager unit trusts to ensure that you have a varied and well-defined range of alternatives.

Prudential Investment Guidelines Compliance

The PPS Personal Pension is required to comply with the Prudential Investment Guidelines of Regulation 28 of the Pension Funds Act and with Exchange Control legislation. As such, the maximum permitted equity exposure is 75%, of which no more than 15% may be in international investments, and no more than 25% in property.


You may change your investment options as often as you choose without incurring a transaction fee. Certain underlying fund managers do, however, charge an initial upfront fee for investment in their products, which would be applied upon your switch into those funds.

Board of Trustees

The PPS Personal Pension is governed by an independent board of trustees with extensive experience and understanding of retirement fund issues. The board comprises a chairman, a professional principal officer and several trustees, all of whom are independent of the fund's sponsor.


You may transfer your existing retirement annuity fund to the PPS Personal Pension subject to the rules of your existing retirement annuity fund. The rules of the PPS Personal Pension allow you to transfer your investment from the fund to another registered retirement annuity, if you wish to do so.


You may not cede your investment in the PPS Personal Pension nor may you use it as security for personal debt. Your benefits within the fund are protected and may not be attached by your creditors for outstanding debt commitments.


You may not borrow from your investment in the PPS Personal Pension.

Death benefits

Should you die before you retire, the proceeds of your PPS Personal Pension will be distributed to your dependants or beneficiaries who may, within six months of your death, elect to take a portion as a lump sum. The portion that may be commuted in this way is calculated as the maximum of contri-butions made, plus 7% compounded annually, plus a third of the balance.

By law, the balance of the capital must be used to purchase a regular annuity.

Once six months has elapsed following your death, and if the option to commute a portion to cash has not been exercised, the full proceeds must be used to purchase a regular annuity.

Minimum investment

  • Lump sum: R10 000
  • Recurring*: R500 per month
  • Ad hoc: R5 000

* Minimum recurring debit order amount for a student member is R200 per month, which will escalate to the normal minimum of R500 per month on qualification.


You may make annual tax-deductible contributions equal to the greater of:

  • 15% of your non-retirement funding income
  • R3 500 less allowable pension fund contributions
  • R1 750

Further tax incentives are that the growth on your PPS Personal Pension does not attract Capital Gains Tax, while interest, foreign dividends and rental income are currently untaxed.


Initial fees

The PPS Personal Pension does not charge an initial fee on investment amounts, and an investment in any of the PPS multi-managed unit trusts will not incur initial fees either. Should you, however, choose to invest in one of the underlying fund managers, an initial fee of 0,25% (excluding VAT) may be charged.

Ongoing fees

An ongoing administration fee of 0,7% (excluding VAT) is charged annually on the PPS Personal Pension. The fee is reduced by applying considerable 'partnership savings' that we have negotiated with the underlying fund managers. The annual administration fees that you pay are reduced by the full extent of these savings as follows:

Scenario 1

PPS Personal Pension investing in a PPS multi-managed unit trust:

  • Annual administration fee 0,7%
  • Partnership saving 0,7%
  • Net annual administration fee 0%
Scenario 2

PPS Personal Pension investing in a third-party single-manager unit trust:

  • Annual administration fee 0,7%
  • Partnership saving 0,4%
  • Net annual administration fee 0,3%

• Please note that partnership savings offered by third-party fund managers differ
• All fees quoted are exclusive of VAT

The annual management fees for the underlying unit trusts are fully disclosed on the investment option schedule.

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