table of contents - seychelles pension fund · memb ership 2 memb ers’ funds 3 contributions 4...

Introduction 1

Membership 2

Members’ Funds 3

Contributions 4

New Pension Formula 5

Pensions Paid 6

Investment Portfolio 7

Investment Income 8

Rate of Return 9

Population Growth 10

Life Expectancy 11

Dependency Ratio 12

Actuarial Valuation 13

Administrative Expenses 14

TABLE OF CONTENTS

IntroductionSeychelles Pension Fund (SPF) is pleased to present its fifth edition of ‘Pensions in Figures’. This pocket-sized edition for 2015 comes with a new, more attractive design and compares figures such as contributions, benefits paid, investments, etc. with those of the previous year.

2015 was an important year for SPF and its members as it saw the introduction of a new pension formula which links benefits to contributions and provides a more transparent methodology in benefits calculation which brought better pensions especially to those retiring after a long service.

2015 also saw tremendous progress and growth for SPF with significant increase in contributions,members’ funds, investment returns, etc.

SPF continues to work for its members and to make prudent invesments of members’ funds to allow them to have the best possible retirement benefits.

Happy reading!

2015 PENSIONS IN FIGURES

SEYCHELLES PENSION FUND| 1

MEMBERSHIP58,901

0.7%membership increase

from 2014 to 2015

(from 58,482 to 58,901)

Active members41,787

Since 2006 total registered members increased by

18% (49,882 to 58,901)

Membership2015 PENSIONS IN FIGURES


Members’Funds

2015SCR1.2b

14% increase inmembers’ funds

from 2014 to 2015

(from SCR1.04b to SCR1.2b)

From 2006 to 2015 the total member’s funds increased by

SPF MEMBERS

FUND

SCR719m

Members’ funds isthe total contributions collected and interest

earned on members’ accountsafter deduction of pensions

and benefits payments

*

Interest of 4% onall members accounts .

(3% in 2014)



Contributions

Total Mandatory contributions made in 2015

Voluntary contributions

worth

increase in mandatory contributions from 2014 to 2015 (from SCR171.96m to SCR195.43m)

1%

Voluntary contributions have increased by 22%

SCR7.6m in 2015.

In 2015 contributions represented 56% of pensions paid (53% in 2014)

14%

SCR195.4mSCR9.8m

collected from 2,214 members

Contribution RatesEmployer 2%Employee 2%



New Pension FormulaEffective from 01 January 2015

Links pensions paid to contributions made.

Average Wage for the last five years

xAverage Wage Growth

xAccrual Rate

xYears of Contribution

Formula



Pensions Paid SCR 101.9min pension benefits paid to

3,670 benefiaries

From 2014 to 2015 pensions paid have increased by SCR22.8m (from SCR79.1m in 2014 to SCR101.9m in 2015)

Number of beneficiaries increased by 3% from 2014 to 2015

(from 3,565 in 2014 to 3,670 in 2015)

The SPF had only 362 beneficiaries in 2006 compared to 3,670 in 2015 (x10 increase)

Benefits paid to members in 2015:•Normal Retirement Pension

•Permanent Incapacity Pension

•Surviving Spouse’s Pension

•Children’s Pension

•Post-Retirement Surviving Spouse’s Pension

•Post-Retirement Children’s Pension

•Lump sum payment

SCR 69.3.mSCR 18.8m

SCR 5.3mSCR 2m

SCR 4.1mSCR 0.4m

SCR 7.5m

Retirement ages:60 years optional

and 63 years

compulsoryretirement

29% from 2014 to 2015

Replacement rate :33%(Percentage of a worker’s

pre-retirement income that is paid out as a

pension upon retirement)(OCED countries average: 69%)



Investment Portfolio 2015 PENSIONS IN FIGURES


Investment Income SCR139m

representing 37% of the total income which includes pensions contributions(SCR89m in 2014)

SCR1.5bin investment funds in 2015

9.6%average rate of return on investment

(7.4% in 2014)

Investment income has increased by 56% since 2014

(SCR1.2b in 2014)



2011 2012 2013 2014 201520100%

2%

4%

6%

8%9% 9.20% 9.60%9.30% 10%

7.40%

Rate of Return

10%

9.6%2015 average rate of return on investments

2015 rates of returns on investments in:Government Securities 6.1%

Commercial banks 8.7%Equity Securities 20%

Overseas Investments 4.2%Real Estate 9.3%



2015 total resident population

93,419

Population Growth

Growth of 2% (91,400)

from 2014

Fertility rate 1% in 2015



Life Expectancy 2015 Life expectancy for both sexes 74.8

69.879.8MaleFemale

Life Expectancy is expected to increase to 75.05 in 2017 and

to 75.4 in 2020

2012 2014 2016 2018 20202010

72

73

74

75

76

73.3

74.2

73.2

74.9 75.15 75.4

Average life expentancy at birth



Dependency Ratio

Defined as the numberof persons aged 0-14 & 65+ who are dependent upon the working age 15-64 years expressed per thousand population

persons in 2015depending on

1,000 persons of working age

(424 persons in 2014)

427



PENSIONS IN FIGURES


Actuarial ValuationThe �nancial sustainability of the Seychelles Pension Fund is an

important concern. In accordance with Section 55 of the Seychelles Pension Fund Act, the SPF is required to carry out an

actuarial review every three years. The last actuarial review of the SPF for the period ending December 2013 was completed by

PricewaterhouseCoopers (PWC) of Sydney, Australia.

The Actuarial Review of 2013 showed that SPF is sound and �nancially sustainable. However, to sustain the SPF in the

long term up to 2050 and beyond there is a need for additional contribution of 4.5% to 5% to be spread out over the years

as set out below to minimise the impact it may have on members’ take home pay.

The recommendation is to start the collection of additional contribution for the future as follows:

1% of earnings

2023

1% of earnings

2028

1% of earnings

2033

1% of earnings

2038

0.5% of earnings

2018

1% of earnings



2015 SCR31.2m

1.4% of total SPF assets (SCR2.3b)28% of SPF total expenditure(SCR110m)

For further details contact:Seychelles Pension Fund

P.o Box 576Caravelle House

Victoria,Mahe, Repbublic of SeychellesTelephone :4294699

website: www.pensionfund.sc

table of contents - seychelles pension fund · memb ership 2 memb ers’ funds 3 contributions 4...

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