Liberty Tech Specfor Liberty Retirement Range

Liberty Investments
Product Technical Specifications
Liberty Retirement Range

FOR INTERNAL USE ONLY
Liberty Investments – Liberty Retirement Range Product Technical Specifications

Version 8 (03 February 2021) | 1
Liberty Retirement Range
General Information
Investment Range Overview
Pre-Retirement
Liberty Retirement Annuity
Liberty Pension/Provident Fund Preserver
Other Information
Brochure and Q&A
Values on Investment Enquiry
Entry Points
Important information:
The information contained in this Technical Specification is the latest product information available. Any legal, product or technical
information provided is subject to change from time to time and is not be construed as advice. Should there be any discrepancies between this document, the investment
terms and conditions and where applicable the fund rules, the latter will apply. The fund rules are available on the Liberty website or from the Principal Officer Care should
also be taken when using the information contained in the Technical Specification to provide information/advice on product features to existing members, as it does not
provide full information on all prior versions of the product.
The product documentation of the particular member should be consulted in such cases.
The Liberty Retirement Range is underwritten by Liberty Group Limited, an authorised financial services provider (no 2409)
Should there be any discrepancies between this document and the contractual terms and conditions contained in the product documentation, the
fund rules (if applicable), then the fund rules will apply in all instances.

Version 8 (03 February 2021) FOR INTERNAL USE ONLY | 2
Liberty Retirement Range Overview
The Liberty Retirement Range is South Africa’s first and only retirement annuity and preservation fund suite of products that lets you know
today, through the Exact Income Fund, exactly what your retirement income will be at Retirement, and guarantees it, regardless of what
the markets do. The Liberty Retirement Range allows you to invest in portfolios that offer real growth, giving the perfect balance between
investment returns and certainty, today and at retirement. Plus, you can now choose to add a High-Water Mark guarantee to your investment
portfolios, so that you can invest for growth, and lock in some of your best quarterly returns.
These policies will be offered as indicated below:
Options
Retirement Annuity Pension Fund / Provident Fund Preserver
Liberty Policy 1 Other Investment Portfolios* Other Investment Portfolios*

Retirement High-Water Mark Guarantee (optional) High-Water Mark Guarantee (optional)
Range Policy 2 Exact Income Fund (optional) Exact Income Fund (optional)
*Option to guarantee a lump sum with the High-Water Mark Guarantee over a 5 year period. Any money invested during this time cannot be added to guaranteed money, but will be kept in
portfolios without a guarantee until a new 5 year guarantee period has begun.
The Exact Income Fund and Other Investment Portfolios will be housed in separate policies, which will comprise the entire investment.
These policies are packaged together, so the adviser only does a single quote, receives a single policy doc.
Example:
Lump Sum Investment
Portfolio Name Exact Income Fund Other Investment Portfolios Total

Lump Sum Investment Amount R75 000.00 100% R100 000.00 100% (175 000.00) 100%
Less: Initial Advice Fee* (R2 588.00) (3.45%) (R1 150.00) (1.15%) (R3 737.50) (2.14%)
Less: Initial Guarantee Charge (optional) - - (R988.50) (1%) (988.50) (0.56%)
Amount Invested R72 435.00 96.55% R97 861.50 97.86% R170 274.00 97.30%
*Including VAT where applicable
Example:
Recurring Investment

Lump Sum Investment Amount R5 000.00 100% R15 000.00 100% (R20 000.00) 100%
Less: Initial Advice Fee* (R0.00) (0.00%) (R258.75) (1.73%) (R258.75) 1.29%
Amount Invested R5 000.00 100% R14 741.25 98.28% R19 741.25 98.71%
Liberty’s current Guideline allocations to the Exact Income Fund:
These apply only if the customer is within 20 years from selected retirement age
Age Guideline Allocation Maximum Allocation

More than 20 years to retirement 0% 0%
Less than 20 years to retirement, and
Below age 35 0% 0%
35 to 39 2.5% 5%
40 to 44 5% 10%
45 to 49 15% 40%
50 to 54 25% 80%
55 and over 25% 100%

Liberty Retirement Range Overview
• These guideline allocations may be used by customers initially.

• The member also has the option to select to have their allocation to future portfolios increase according to the guideline allocation option
above.
• This will not affect their existing investments.
• To change existing investment, a written switch instruction would have to be submitted to Liberty. The table above is the current guideline
allocations which may change from time to time, future investments will always be invested according to the latest guideline if selected.
Maximum 20 years to retirement
Over and above the maximum allocation limits imposed by the table, there is a maximum period to retirement in the Exact Income Fund of 20
years. If someone is more than 20 years from retirement, they are not allowed to invest anything in the Exact Income Fund.
High-Water Mark Guarantee
The High-Water Mark Guarantee is an optional benefit and allows the member to lock in returns over each quarter.
• 5 year rolling guarantee period subject to Liberty’s or the Member’s right to cancel the High-Water Mark Guarantee.
• The initial Guaranteed Value is 80% of the amount allocated to the Guaranteed Portfolios. This increases with the highest aggregate
return of the Guaranteed Portfolios at the end of every 3 months. Any unit deductions from the Guaranteed Portfolios will cause the
guaranteed value to reduce proportionally (this includes fees, charges and legislative withdrawals).
• In this way, the High-Water Mark Guarantee protects the Member’s Guaranteed Portfolios from falling by more than 20% of their initial
value, increased with that Member’s highest quarterly aggregate return on his/her Guaranteed Portfolios (before the deduction of any
explicit charges, fees and withdrawals), during the Guarantee Period .
• The High-Water Mark Guarantee is determined at the end of every three months from the Guarantee Start Date. The Member’s
Guaranteed Value is the value of the Guaranteed Portfolios as calculated by using the High-Water Mark Guarantee.
• The High-Water Mark Guarantee will only apply on Lump Sum investments in Other Investment Portfolios and will not apply to any
Recurring Investments made by the Member to the Investment.
• Additional investments may not be added to the Guaranteed Portfolios during the Guarantee Period. These will be invested in the
Member’s choice of portfolio(s) for Recurring Investments, which are not guaranteed.
Guarantee Top-Up
Where the Member’s value of his/her Guaranteed Portfolios is less than the Guaranteed Value, the Member is entitled to a Guarantee Top-up:
• If the Member passes away during the Guarantee Period; or
• At the Guarantee End Date.
The Guarantee Top-up is calculated as the difference between the Guaranteed Value and the current investment value of the Guaranteed
Portfolios and is reinvested proportionally in the Member’s Guaranteed Portfolios.

The Member will not be entitled to the Guarantee Top-up if:
• The Member chooses to remove the High-Water Mark Guarantee before the end of the Guarantee Period; or
The Member transfers his/her investment to another provider before the end of the Guarantee Period.
Guarantee Charges
At the start of each Guarantee Period, Liberty will confirm the Guarantee charges that will apply for that Guarantee Period. These charges may
include an Initial Guarantee Charge and/or an Ongoing Guarantee Charge, or neither as the case may be at the time.
Where an Initial Guarantee Charge is levied, such charge will be calculated based on the investment value that will be guaranteed and shall be
deducted at the start of each Guarantee Period.
Where an Ongoing Guarantee Charge is levied, such charge will be calculated monthly, based on the investment value of the Guaranteed
Portfolios at the time, and shall be deducted from the investment value.

Growth Sharing
When the Member chooses the High-Water Mark Guarantee on his/her Investment, Growth Sharing will apply to the Guaranteed Portfolios
during the Guarantee Period.
At the start of the Guarantee Period, Liberty will determine a Target Return and Growth Sharing Proportion on the Member’s Investment in the
Guaranteed Portfolios, for the duration of the Guaranteed Period.
The growth on the Guaranteed Portfolios (before the explicit deduction of any charges, fees and withdrawals) is measured against the Target
Return annually. When the Target Return is achieved, the Growth Sharing Proportion will be used to determine what portion of the growth
above the Target Return will be retained by Liberty and what portion will be retained by the Member.
The Member may select any combination of portfolios to achieve the Target Return.
Where the Member decides to remove the High-Water Mark Guarantee or transfer his/her Investment to a different provider, the Growth
Sharing applicable for the Growth Sharing Year to date will be deducted from the Member’s Investment in the Guaranteed Portfolios.
Removal of the High-Water Mark Guarantee will cause any applicable guarantees to will fall away and new guarantees and/or Guarantee
Charges may apply when choosing to add the guarantee at a later stage again. Guarantee Charges are non-refundable.
Legal Structure • If you apply for the Retirement Annuity or Pension/Provident Preserver, you will be applying for membership
of the Lifestyle Retirement Annuity Fund or the Lifestyle Retirement Preserver Pension/Provident respectively,
approved retirement funds registered with the Registrar of Pension Funds.
• The retirement funds are subject to the Pension Funds Act and the Income Tax Act, and the underlying
investment being the Liberty Retirement Annuity / Preserver Pension / Provident are subject to the Long-Term
Insurance Act.
• Where the Member has selected to invest in the Exact Income Fund, the Investment Amount in that portfolio
will be underwritten in a separate fund member policy. Investment Amounts invested in any other portfolios will
be underwritten in a different fund member policy. Together, the two fund member policies forms the entire
Investment.
Portfolios • Access to Other Investment portfolios, guarantees and the Exact Income Fund (Exact Income Fund).
• Exact Income Fund allows the member to build-up future guaranteed income in retirement with stipulated
guidelines.
• The member can switch from Other Investment Portfolios to the Exact Income Fund over time as needs change.
Income in the Exact Income Fund should be used as a bedrock for retirement provision and shouldn’t be switched
unnecessarily.
Retirement • At Retirement, the member can retire separately from the two investments:
• The portion invested in the Exact Income Fund may be used to realise the guaranteed ”Exact Income” in the form
of a single life non-escalating life annuity with Liberty,
• The portion invested in the Other Investment Portfolios may be used to purchase any other compulsory purchase
annuity (living or life annuity, from Liberty or another Insurer)
• The two investments may also be combined, although the income accrued in the Exact Income Fund would have
to be capitalised, which would mean that the member loses their “guarantee” in the Exact Income Fund.
Access Liberty Retirement Annuity Liberty Pension/Provident Fund Preserver

• The investment is not accessible before retirement • All or part of the investment is accessible before
(unless due to ill health or a legislative withdrawal retirement, subject to tax
such as divorce, maintenance ,emigration, the
• Money may be accessed only once before the
expiration of work/visitors’ visas or where the total
member’s selected retirement date.
investment value of all investments in the Fund is
below the prescribed legislative amount from time to • Pension Preserver: On retirement the member may
time). take up to 1/3 of their benefit as cash (subject to tax);
the remainder must be used to purchase an annuity.
• On retirement the member may take up to 1/3 of their
benefit as cash (subject to tax); the remainder must • Provident Preserver: Currently, on retirement the
be used to purchase an annuity. member may take up to 100% of their benefit in cash
(subject to tax);

Contents
Liberty Retirement Range Overview 4 20. Investment Portfolio Rules 24

1. About the product 7 i. Portfolio Elections
ii. Number of portfolios allowed
2. Automatic Contribution Increase (ACI) 8
iii. Portfolios available and portfolio fees
3. Access to benefits 8 iv. Portfolio grid
4. Additional Investments 9 21. Joint Lives 25
5. Advice Fees 9 22. Lump Sum phasing in option 25
6. Amount Invested 10 23. Minimum Lump sum and recurring investments 25
7. Ancillary Benefits 10 24. Options at selected retirement date 25
8. Annuity Income Level 10 25. Ownership 27
9. Backdating/Forward dating 11 26. Paid-up Investments 28
10. Beneficiaries 11 27. Payment 28
11. Benefits 11 28. Terms & Conditions 28
a) Investment Account 29. Investment Term 28
b) Death Benefit
30. Portfolio Descriptions and Availability Grid 29
c) Benefits at Retirement
d) Benefits at retirement due to ill health 31. Investment amount reduction/stopping
e) Transfer values investments 29
f) Investments to ADD LIB Bonus
32. Right to withdraw (Cooling-off Period) / Cancel
12. Fee Structure 20 from inception 29
g) Overview of the fees involved 33. Single Lump Sum Investments 29
h) Upfront Fees
34. Switching 29
i. Initial Advice Fee
ii. Bid / Offer Spread 35. Surrenders/Advances 29
iii. Guarantee charge
36. Taxation of Investment benefits 29
i) Ongoing Fees
i. Platform Fee 37. Case Study 29
ii. Portfolio Fee 38. Version History 33
iii. Ongoing Advice Fee
iv. Service fees Entry Points 34
v. Guarantee fees
j) Aggregation
k) Early Termination Fee
l) Performance Fees
m) External asset management charges
13. Conversion to a Fixed Interest Annuity 20
14. Early Retirement / Transfer 20
Early termination charges and paid-up charges
15. Eligibility 21
16. Entry age (max., min.) 21
17. High-Water Mark Guarantee 21
n) Exact Income Guarantee
18. Guaranteed Insurability Benefit (GIB) 22
19. Investment Account 22
Exact Income Fund
Investment value of Exact Income Fund before
Selected Retirement Date
Underwriting on exit from the Exact Income Fund

1. About the product
Liberty The Liberty Retirement Annuity:

Retirement
• If you apply for the Liberty Retirement Annuity, you will be applying for membership of the Lifestyle Retirement
Annuity
Annuity Fund, an approved retirement fund registered with the Registrar of Pension Funds.
• This is lump sum / recurring investment retirement annuity. Recurring investments are flexible and can be started,
increased or stopped at any time without incurring any costs.
• The Retirement Annuity investment allows you to provide for your retirement, or to supplement your existing
retirement planning.
• This product provides you with the flexibility to structure the investment according to your investment
requirements.
• Members have the option to invest a portion of their investment in the Exact Income Fund.
• They also have the opportunity to invest in a range of other investment portfolios.
The Lifestyle Retirement Annuity Fund is subject to the Pension Funds Act and the Income Tax Act, and the underlying
investment being the Liberty Retirement Annuity is subject to the Long-Term Insurance Act.
Where the Member has selected to invest in the Exact Income Fund, the Investment Amount in that portfolio will
be underwritten in a separate fund member policy. Investment Amounts invested in any other portfolios will be
underwritten in a different fund member policy. Together, the two fund member investments forms the entire
Investment.
Liberty The Liberty Pension / Provident Fund Preserver:

Pension /
• If you apply for the Liberty Pension/Provident Fund Preserver, you will be applying for membership of the Lifestyle
Provident Fund
Retirement Preserver Pension/Provident, which are approved retirement funds registered with the Registrar of
Preserver
Pension Funds.
• Members of existing Pension/Provident funds can transfer their existing accumulated benefits on termination of
service (resignation, winding up or retrenchment) into it without incurring any tax liability. This enables them to
preserve their valuable retirement benefits.
Members have the option to invest a portion of their investment in the Exact Income Fund.
They also have the opportunity to invest the remainder of the investment in a range of other investment portfolios.
The Pension / Provident Preserver ensures the continued growth and preservation of members retirement savings
through two plans
The Pension Preserver and the Provident Preserver:
The Lifestyle Pension/Provident Preservation Funds are subject to the Pension Funds Act and the Income Tax Act.
The underlying investments in these Funds, being the Liberty Pension / Provident Fund Preserver Fund policies are
governed by the Long-Term Insurance Act.
Where the Member has selected to invest in the Exact Income Fund, the Investment Amount in that portfolio will
be underwritten in a separate fund member policy. Investment Amounts invested in any other portfolios will be
underwritten in a different fund member policy. Together, the two fund member investments forms the entire
Investment.
Exact Income Fluctuating Markets and interest rates affect the monthly income that the member will be able to purchase (in a life
Fund annuity) when they retire. With the Exact Income Fund, this uncertainty is removed. The monthly retirement
income is guaranteed TODAY for the member’s retirement years.
Each year the financial adviser will be able to help the member to review the appropriateness of their income target and
decide how to split their investment between the Exact Income Fund and the Other Investment Portfolios to get the
maximum benefit for the member.
NB: the level of income stated in the quote is only based on a single-life non-escalating annuity (without a guarantee
period).
More importantly, the level of income shown in the quote is only an illustration based on current annuity rates. Income
can only be guaranteed once an investment has been made and Liberty is able to secure the income.
Each new investment in the Exact Income Fund purchases a level of income from retirement which is known at the
outset. But as interest rates and other factors change over time, the amount of income that each investment can
secure changes.

Equivalent To make it easy for you / the member to compare the Exact Income Fund with another portfolio, we have calculated
Portfolio what we call an Equivalent Portfolio Return. The EPR is the level of return another portfolio must give to match the
Return (EPR) outcome of the Exact Income Fund. You will be able to use the Equivalent Portfolio Return to compare the returns of
the Exact Income Fund with other investment portfolios.
When investing in other investment portfolios, markets and interest rates fluctuate and may, or may not, move in your
favour. This will affect the monthly income that the member will be able to purchase when they retire. With the Exact
Income Fund, this uncertainty is removed. There are two aspects that must be considered when doing a comparison
with other investment portfolios using the Equivalent Portfolio Return:
• Firstly we guarantee the monthly retirement income TODAY, from their selected retirement age until the day they
die.
• Secondly, as it not possible to predict what the annuity rates will be at their selected retirement date with
confidence; we’ve assumed today’s annuity rates in calculating the Equivalent Portfolio Return.
The Equivalent Portfolio Return is applicable at the point of investment, relative to other annuity rates at the time of
investment. Thereafter it doesn’t affect the benefits payable to the member. It is therefore a yardstick with which to
contextualise the investment at the time of investment.
Regulation 28 Regulation 28 of the Pension Funds Act applies to retirement funds, including the underlying investments in those
funds. In terms of this regulation, retirement funds need to ensure that their exposure to certain asset classes remains
within the specified limits. In addition, Regulation 28 only allows a maximum of 75% of a member’s investment to be
invested in equities at any point in time.
Liberty therefore monitors the exposure of members to the various categories of assets every quarter. Market
movements may cause a combination of portfolios to become non-compliant and members will be required to change
their portfolios. If members don’t do so once Liberty has notified them of non-compliance with regulatory limits, Liberty
will move the portion of assets that are non-compliant to a money market fund.
The member must ensure they select portfolios correctly to remain Regulation 28 compliant overall.
The Exact Income Fund can be used as the non-equity component in a retirement fund investment strategy.
Liberty will monitor the two separate policies in the Liberty Retirement Range investment as one package to ensure
that the member remains compliant to Regulation 28 across the entire investment consisting of 2 policies.
2. Automatic Contribution Increase (ACI)
The Liberty Retirement Annuity:

• If recurring investment amounts have been selected, an ACI of between 0% p.a. and 20% p.a. is allowed.
• The member is allowed to change this at any time at no cost.
Liberty Pension / Provident Preserver
• Not applicable.
3. Access to benefits
Liberty The investment value can be accessed from age 55 as retirement benefits i.e. to purchase an annuity and/or lump sum
Retirement (as permitted by legislation).
Annuity
Benefits can only be accessed before age 55 if it is for early retirement due to ill health or a withdrawal regulated by
legislation. These legislative withdrawals relate, amongst other things, to divorce and maintenance orders as well as
emigration the expiration of work/visitors’ visas or where the total investment value of all investments in the Fund is
below the prescribed legislative amount from time to time. (Currently R 7000.00). It may also relate to a transfer to
another retirement fund.
The tax paid on these withdrawals is in terms of the current tax tables for withdrawals as set out in the Income Tax Act.
Liberty The investment value can be accessed from age 55 as retirement benefits i.e. to purchase an annuity and / or lump sum
Pension / (as permitted by legislation).
Provident Fund
The Member of the Pension/Provident Fund may apply to Liberty for a withdrawal of a whole or a part of the
Preserver
Investment Value before Retirement. Currently, only one withdrawal is permitted in terms of legislation.

Liberty Withdrawals are specifically regulated by law and may also include withdrawals due to divorce and maintenance.
Pension / Transfers to another approved retirement fund are also permitted.
Provident Fund
At retirement under the pension preservation fund, currently up to one-third of the Investment Value can be taken as
Preserver
a cash retirement fund lump sum benefit, less any applicable tax.Any other annuity for life may be purchased with the
cont.
balance at the prevailing annuity rates at the time.
At retirement under the provident preservation fund, the rules of the Fund provides that the full retirement benefit
must provide the Member with one or more annuities, but allows the Member to take any portion of or the full annuity
as a cash retirement fund lump sum benefit, less and any tax.
The tax paid on these withdrawals is in terms of the current tax tables for withdrawals as set out in the Income Tax Act.
4. Additional Investments
• Additional Lump Sum Investments amounts are allowed subject to relevant legislation applicable at the time and the Fund rules..
• The additional lump sum investment amount does not need to adhere to the minimum per portfolio limit but does need to adhere to the
minimum additional lump sum investment requirements.
• The additional lump sum investment amounts reduced by the applicable advice fees will be credited to the investment account in the
same proportions as the portfolio/s selected, unless the Member specifically selects a different portfolio.
• Additional Lump Sum investments are not subject to the constraints of Section 54 of the Long Term Insurance Act.
• Initial Advice Fees are paid on these investments at the level agreed with the member.
Liberty • The minimum for lump sum investments is R 15,000.

Retirement
• To add a recurring investment, the minimum is R500 p.m.
Annuity
Liberty • Additional Lump Sum Investments are allowed during the term of the investment as long as they are from
Pension / the original approved transferring retirement fund.
Provident Fund
• The minimum for lump sum investments is R 150,000.
Preserver
• The minimum additional lump sum Investment is R1 000.
• When the High-Water Mark Guarantee is selected, no additional investments can be added to those portfolios. The money will be
allocated to the selected portfolios, but without a guarantee. When the guarantee rolls over at the guarantee end date, all the money at
that time will be placed under a new guarantee.
• In order to add the additional investment to the Guaranteed Portfolios, the member would have to switch off the guarantee, add the
money and then switch it back on and incur the upfront guarantee charge on the full amount when for a full 5 year period again.
5. Advice Fees
• There is no commission payable as defined under the Long-Term Insurance Act.

• Liberty facilitates the payment of advice fees negotiated directly between the adviser and the member in terms of FAIS.
• Currently there are no regulated maximum limits on advice fees,– Liberty limits these to be consistent with Industry best practice
– 3.45% Initial Advice Fee for Preservers and RA’s
– 0% for transfers from existing Preservation and Retirement Annuity Funds
• Ongoing Advice Fees can be between 0 and 1.15% p.a.

6. Amount Invested
i. Initial investment
The net amount invested is equal to the:
Lump Sum or Recurring Investment

Exact Income Fund Other Investment Portfolios
Minus The initial advice fee selected (incl. a 15% loading). The initial advice fee selected (incl. a 15% loading).
Minus The initial guarantee charge (if applicable)
Equal Amount Invested Amount Invested
Example:
If the Lump Sum investment is R175 000 and the adviser agrees Initial advice fee of 3.45% on the Exact Income Fund and 1.15% on the other
investment portfolios (including 15% loading), the member will receive the following allocation:
Lump Sum Investment Amount R75 000.00 100% R100 000.00 100% (175 000.00 100%
Less: Initial Advice Fee* (R2 587.50) (3.45%) (R1 150.00) (1.15%) (R3 737.50) (2.14%)
Less: Initial Guarantee Charge (optional) - - (R988.60) (1%) (988.60) (0.56%)
Amount Invested R72 412.50 96.55% R97 861.50 97.87% R170 274.00 97.30%
ii. Additional Lump Sum Investment

Additional lump sum investments will be fully invested using into the members choice of portfolios i.e. split between the Exact Income
Fund and the other investment portfolios. Allocations for additional lump sum investments will be similar to allocations for new recurring
investments with advice fees deducted per investment as agreed.
The net additional lump sum investment allocation is equal to:
Additional lump sum investments

Minus The initial advice fee agreed between the adviser and member (incl. a 15% loading)
Equals Amount Invested
If the High-Water Mark Guarantee has been selected at policy inception. Any new money added to the Investment will not be guaranteed,
At the start of a new Guarantee Period, the total Investment Value at the time will then be guaranteed.
iii. Recurring Investment Amount on the Liberty Retirement Annuity

Recurring Investment amount (if selected) will be fully invested into the member’s choice of portfolios i.e. the Exact Income Fund and the
other investment portfolios. Allocations for recurring investments will be similar to allocations for new investments.
The allocation for each recurring investment amount is equal to:
Recurring Investment
Minus The initial advice fee agreed between the adviser and customer (incl. a 15% loading)
Equals Amount Invested
Recurring investment amounts will not be guaranteed. The High-Water Mark Guarantee will only apply to the Investment Value at the time it
is selected or at the start of a new Guarantee Period.
7. Ancillary Benefits
Not available on this product.
8. Annuity Income Level
Not available on this product.

9. Backdating/Forward dating
No backdating is allowed on these investments - backdating of investment amounts and other transactions will NOT be allowed. If back-dating
of investments occurs, this will have a cost implication to Liberty.
10. Beneficiaries
A maximum of 6 beneficiaries are allowed.

NB: Section 37C of the Pensions Fund Act requires that the trustees of the Retirement Fund decide on how the benefits are to be distributed
between the actual dependents and nominated beneficiaries.
11. Benefits
a) Investment Account
Liberty will operate an investment account for this Investment.
The Investment Value at any time is equal to:
• The present value of the future cash flows accrued in the Exact Income Fund, and
• The number of units held in the investment account for each portfolio multiplied by the sell price of those units.
If all necessary requirements have been met before the daily cut-off on a particular business day, Liberty will allocate the amount at the
closing unit price on that day. If the requirements are only met after the daily cut-off, the amount will only be allocated at the closing unit
price on the next business day.
Liberty initially calculates the number of units added to the investment account of each portfolio by dividing the rand amount so allocated
by the appropriate portfolio unit price.
Liberty will deduct any ongoing platform fees, authorised advice fees and any applicable guarantee fees (if applicable) by deducting units
from the investment account at their sell price on a monthly basis.
If a legislative withdrawal is made from the Investment, Liberty will deduct the withdrawal from the investment account by selling units at
their selling price.
Any property capital bonus will be added to (or deducted from) the investment account by adding units (or deducting units) at their buy
price (or sell price). The property capital bonus is an annual adjustment to the return on certain portfolios with investments in property to
reflect the return achieved on these investments in the previous year. This will be added to or deducted from the investment account as
soon as practicable each calendar year.
When any income or dividend is received in the form of a distribution, this will either be:
• Allowed for in calculating the basic price; or
• Allocated to the Investment adding additional units to the investment account. The number of units added will be calculated based
on the Investment’s share of the distribution received less an allowance for tax, divided by the buy price of the units.
Exact Income Fund
The Exact Income Fund investment account increases and decreases in value, based on the market value of the assets backing the
promised future payments accrued as Exact Income.
Any capital investment in or switch out of the Exact Income Fund is converted to Exact Income and added to or subtracted from the
Exact Income.
The investment value of the Exact Income is the market value of the assets backing the promised future payments.
Where the Member has agreed to an ongoing advice fee on the Exact Income Fund less than the implicit 0.57% p.a., the balance of each
ongoing advice fee payment not paid to the financial adviser will be reinvested in the Exact Income Fund, increasing the Exact Income
account.

b) Death Benefit
Liberty • If the Member dies before retirement, the Member’s dependents and/or nominated beneficiaries will be paid
Retirement a benefit based on the Investment Value, with the Guaranteed Portfolios increased with any Guarantee Top-
Annuity and up if applicable, on the date Liberty receives notification of death, less any applicable tax.
Pension /
• If there are no dependents or nominated beneficiaries at the time of death, benefits will be paid to the
Provident Fund
Member’s estate.
Preserver
• The benefit is payable as an annuity less any applicable tax and will depend on annuity rates available in the
market on the actual date that the annuity is bought. Subject to legislation applicable at the time, it may be
possible to take some or all of the annuity benefit on death as a cash retirement fund lump sum benefit.
c) Benefits at Retirement
• Any annuity purchased with the investment value shall be subject to the regulatory requirements applicable at the time.The number
of units held in the investment account for each portfolio multiplied by the sell price of those units.
Liberty Retirement from the Fund takes place on the selected retirement date unless the Member elects to retire on a
Retirement different date. The Member may elect to retire and start receiving benefits at any age from 55.
Annuity
The benefit on retirement under this Investment is the Investment Value of this Investment on the date the
Member elects to retire from the Fund.
The benefit is payable as an annuity less any applicable tax, purchased in the Member’s name, and is payable for
the Member’s lifetime.
Legislation currently allows the Member to take up to one-third of the annuity as a cash retirement fund lump
sum benefit, less any applicable tax, depending on the Investment Value held by the Fund on the Member’s
behalf. The balance will be paid as an annuity subject to the annuity rates available in the market on the date of
retirement and subject to all regulatory requirements applicable at the time.
Currently, if the investment value of all the Investments held by the Fund on the Member’s behalf is less than
R247 500, the full annuity can be taken as a cash retirement fund lump sum benefit. This amount is subject to
legislative limits at the time.
Where the Exact Income Fund was selected, the Exact Income accrued in this portfolio may be taken as a
single-life non-escalating life annuity (with no Guarantee Period) underwritten by Liberty and subject to Liberty’s
minimum requirements. If the Member retires before or after the selected retirement date or chooses a different
annuity type with Liberty, the Exact Income will be adjusted accordingly based on market rates applicable to the
Exact Income Fund at that time. The single-life non-escalating life annuity will also only be available if the annuity
purchased provides an income greater than Liberty’s required minimum amount and the Member retires before
age 90. If the Exact Income is below Liberty’s required minimum or the Member has not retired by age 90,
Liberty will switch the investment value of the Exact Income accrued in the Exact Income Fund to the STANLIB
Money Market Fund or a portfolio similar to the STANLIB Money Market Fund and the Member will be required
to choose any other annuity with the money switched, subject to the regulatory requirements applicable at the
time. Liberty will communicate this in writing to the Member at least six (6) months prior to him/her attaining
age 90.
Should the Member choose to use the funds in the Exact Income Fund to purchase any other annuity type
with Liberty or another provider, the Member will also be subject to medical underwriting and will be obliged to
provide certain medical information or be subject to a medical examination at Liberty’s request and at Liberty’s
expense. After medical underwriting has taken place, Liberty will adjust the investment value depending on the
Member’s health and life expectancy relative to the average life expectancy of Liberty annuitants.
Further, Liberty’s statutory actuary will determine the life expectancy of all Liberty annuitants from time to
time (currently 85 for men and 89 for women) and in the event that the average 65 year old Liberty annuitant
is expected to live past the age of 100 for men and 104 for women at the Member’s selected retirement date,
Liberty will make the following income options available to the Member with the funds in the Exact Income
Fund:
• The guaranteed income secured through the Exact Income Fund, but at a later retirement date which will
be determined by Liberty (taking into account the life expectancy beyond age 100 for men and age 104 for
women), and payable until the death of the Member; or
• A reduced guaranteed income, as determined by Liberty taking into account the life expectancy beyond
age 100 for men and age 104 for women, at the Member’s original selected retirement date, and payable
until the death of the Member; or

Liberty • The guaranteed income secured through the Exact Income Fund, at the Member’s original selected
Retirement retirement date, until the Member reaches 100 (if the Member is a male) or 104 (if the Member is a woman)
Annuity being Liberty’s current expected average life expectancy. Thereafter, the annuity will be reduced.
cont.
The Member will be notified in writing with a minimum of three (3) months’ notice of any changes to Liberty’s
determination of life expectancy in the Exact Income Fund as well as the various options available to the Member
at retirement.
Liberty On retirement (after age 55):

Pension /
Pension preserver option
Provident Fund
Preserver Retirement from the Fund takes place on the selected retirement date unless the Member elects to retire on a
different date. The Member may elect to retire and start receiving benefits at any age from 55.
Provident preserver option
Retirement from the Fund takes place on the selected retirement date unless the Member elects to retire on a
different date. The Member may elect to retire and start receiving benefits at any age from 55.
Member elects to retire from the Fund
The Rules of the Fund provide that the full retirement benefit must provide the Member with one or more
annuities, but allows the Member to take any portion of or the full annuity as a cash retirement fund lump sum
benefit, less any applicable tax.
Pension / Provident Preserver
annuity type with Liberty, the Exact Income will be adjusted accordingly based on market rates applicable to the
Exact Income Fund at that time. The single-life non-escalating life annuity will also only be available if the annuity
purchased provides an income greater than Liberty’s required minimum amount and the Member retires before
age 90. If the Exact Income is below Liberty’s required minimum or the Member has not retired by age 90, Liberty
will switch the investment value of the Exact Income accrued in the Exact Income Fund to the STANLIB Money
Market Fund or a portfolio similar to the STANLIB Money Market Fund and the Member will be required to choose
any other annuity with the money switched, subject to the regulatory requirements applicable at the time. Liberty
will communicate this in writing to the Member at least six (6) months prior to him/her attaining age 90.
Should the Member choose to use the funds in the Exact Income Fund to purchase any other annuity type with
Liberty or another provider, the Member will also be subject to medical underwriting and/or will be obliged to

Liberty Liberty will make the following income options available to the Member with the funds in the Exact Income Fund:
Pension /
Provident Fund
Preserver
women), and payable until the death of the Member; or
cont.
• A reduced guaranteed income, as determined by Liberty taking into account the life expectancy beyond age
100 for men and age 104 for women, at the Member’s original selected retirement date, and payable until
the death of the Member; or
• The guaranteed income secured through the Exact Income Fund, at the Member’s original selected
retirement date, until the Member reaches 100 (if the Member is a male) or 104 (if the Member is a woman)
being Liberty’s current expected average life expectancy. Thereafter, the annuity will be reduced.
at retirement.
Exact Income Note: References to “you” and “your” in this section refer to the member as these are extracts from the policy
Fund (optional documents.
on Retirement
If you chose the Exact Income Fund, the exact income accrued in this portfolio may be taken as a single-life
Annuities and
non-escalating annuity (with no guarantee period) underwritten by Liberty, and subject to Liberty’s minimum
Preservers)
requirements.
• If you retire before or after the selected retirement date, the exact income will be adjusted accordingly based
on market rates applicable at that time.
• The single-life non-escalating annuity (with no guarantee period) will only be available if the annuity
purchased provides an income greater than Liberty’s required minimum amount.
• If you have not retired by age 90, Liberty will switch the Investment Value of the exact income accrued in the
Exact Income Fund to the STANLIB Money Market Fund or similar money market portfolio and you will have
to choose another annuity when you retire. Liberty will communicate this to you in writing at least 6 months
prior to you attaining age 90.
• If you decide to change the guaranteed single-life non-escalating annuity (with no guarantee period)
provided through the Exact Income Fund to any other fixed interest annuity type provided by Liberty, the
exact income will be adjusted accordingly based on market rates applicable at that time.
Should you choose to use the capital value in the Exact Income Fund to purchase any other annuity type with
Liberty or another provider, you will also be subject to medical underwriting and your Investment Value will be
adjusted accordingly.
At your selected retirement date, if the life expectancy of people invested in the Exact Income Fund is less than
100 for men and 104 for women at age 65, then you will get the income you’ve secured in the Exact Income
Fund, for life, from your selected retirement date. However in the unlikely event that if, at your selected retirement
date, the life expectancy of said annuitants is greater than 100 and 104 for men and women respectively, then the
following income options will be made available to you:
• You can delay your retirement by a few years. We will let you know what your new retirement age is, so that
you ensure your original guaranteed income for life.
• You can retire at your selected retirement date and receive a slightly lower income payable for life.
• You can retire at your selected retirement date and keep the same level of income, but the income will only
be paid until you reach the age of 100 (if you are a man) and 104 (if you are a woman). After this age, it will
reduce.
Your investment in the Exact Income Fund would have provided you with significant protection against the
increase in costs associated with this dramatic unexpected improvement in life expectancy.
Any other annuity may be purchased with the balance of the investment value subject to legal and tax restrictions
at the time.
High-Water The High-Water Mark Guarantee does not pay out a guarantee top-up on retirement.
Mark Top-ups are only paid at the end of the Guarantee Period.
Guarantee
For this reason, members should not select the High-Water Mark guarantee if they have less than five years to
retirement.

d) Benefits at retirement due to ill health
• The Member may qualify to retire earlier than age 55 if the Member becomes permanently incapable of performing their duties of
the occupation they were engaged in immediately before their ill health.
• The benefit on retirement under this Investment is the Investment Value of this Investment on the date the Member actually retires
from the Fund,.
Liberty The Member may qualify to retire earlier than age 55 if the Member becomes permanently incapable of
Retirement performing his/her duties of the occupation he/she was engaged in immediately before his/her ill health.
Annuity and
Pension
Preserver
annuity type with Liberty, the Exact Income will be adjusted accordingly based on market rates applicable at that
time.
Further, Liberty’s statutory actuary will determine the life expectancy of all lives in the Exact Income Fund from
time to time (currently 85 for men and 89 for women) and in the event that the average 65 year old in the Exact
Income Fund is expected to live past the age of 100 for men and 104 for women at the Member’s selected
retirement date, Liberty will make the following income options available to the Member with the funds in the
Exact Income Fund:
The guaranteed income secured through the Exact Income Fund, but at a later retirement date which will be
determined by Liberty (taking into account the life expectancy beyond age 100 for men and age 104 for women),
and payable until the death of the Member; or
A reduced guaranteed income, as determined by Liberty taking into account the life expectancy beyond age 100
for men and age 104 for women, at the Member’s original selected retirement date, and payable until the death of
the Member; or
The guaranteed income secured through the Exact Income Fund, at the Member’s original selected retirement
date, until the Member reaches 100 (if the Member is a male) or 104 (if the Member is a woman) being Liberty’s
current expected average life expectancy. Thereafter, the annuity will be reduced.
at retirement.
Liberty The Member may qualify to retire earlier than age 55 if the Member becomes permanently incapable of
Provident performing his/her duties of the occupation he/she was engaged in immediately before his/her ill health.
Preserver The benefit on retirement under this Investment is the Investment Value of this Investment on the date the

Liberty The Rules of the Fund currently provide that the full retirement benefit must provide the Member with one or
Provident more annuities, but allows the Member to take any portion of or the full annuity as a cash retirement fund lump
Preserver cont. sum benefit, less any applicable tax.
Exact Income Where the Exact Income Fund was selected, the Exact Income accrued in this portfolio may be taken as a
Fund single-life non-escalating life annuity (with no Guarantee Period) underwritten by Liberty and subject to Liberty’s
annuity type with Liberty, the Exact Income will be adjusted accordingly based on market rates applicable at that
time.
expense. After medical underwriting has taken place, Liberty will adjust the Investment Value depending on the
Liberty will make the following income options available to the Member with the funds in the Exact Income Fund:
women), and payable until the death of the Member;
The Member will be notified in writing within three months of any changes to Liberty’s determination of life
expectancy in the Exact Income Fund as well as the various options available to the Member at retirement.
The single-life non-escalating life annuity will also only be available if the annuity purchased provides an income
greater than Liberty’s required minimum amount and the Member retires before age 90. If the exact income
is below Liberty’s required minimum or the Member has not retired by the age of 90, Liberty will switch the
Investment Value of the exact income accrued in the Exact Income Fund to the STANLIB Money Market Fund
or a portfolio similar to the STANLIB Money Market Fund and the Member will be required to choose any other
life annuity with the money switched subject to the regulatory requirements applicable at the time. Liberty will
communicate this in writing to the Member at least 6 months prior to him/her attaining age 90.
High-Water No Guarantee Top-Up will be paid if the member retires due to ill health, where this does not coincide with a
Mark guarantee end date.
Guarantee
e) Transfer values
Refer to the Investment Account above.
f) Investments to ADD LIB Bonus

The transfer value of this product will be taken into account for ADD LIB bonus calculation.

12. Fee Structure
g) Overview of the fees involved
At inception Ongoing Fees

Portfolio Name Initial Advice Standard Investment Platform Portfolio Guarantee Ongoing External Asset
Fee Enhancement Enhancement Fee Fee Fee Advice Fee Manager Fee
Exact Income Explicit 0.575% p.a.
n/a n/a n/a n/a n/a n/a
Fund deduction implicit *
Explicit
Other Liberty Explicit Implicit in Explicit unit Explicit unit
n/a n/a unit n/a
Portfolios deduction price deduction deduction
deduction
Explicit
External unit Explicit Explicit unit
n/a n/a unit n/a n/a Implicit in price
trusts deduction deduction
deduction
1% upfront amount, deducted from the amount
High-Water 25% of the growth above the Target Return is shared with Liberty.
allocated to the Guaranteed Portfolios, at the
Mark Guarantee This is deducted at the end of every year within the Guarantee Period.
inception of each guarantee period.
* Member may agree different level, which is then credited to their Exact Income Fund over time.
h) Upfront Fees
i. Initial Advice Fee
Liberty Initial Advice Fee (IAF)

Retirement
• Maximum IAF of 3% (3.45% Incl. VAT) for voluntary purchases and
Annuity
• 0% for transfers from another retirement annuity fund
This applies to additional lump sum investments and recurring investments too. The IAF negotiated for the
recurring investments can be different to that for lump sum investments
IAF Claw Backs
Claw back does not apply.
Liberty Initial Advice Fee (IAF)

Pension / • Maximum IAF of 3% (3.45% Incl. VAT) will be paid;
Provident
Preserver • 0% for transfers from Preservation Funds
This will apply to additional lump sum investments as well.
IAF Claw Backs
Claw back does not apply.
ii. Bid / Offer Spread (initial portfolio management fees)

• Any bid / offer spread will be included in the unit prices of the other investment portfolios.
iii. Guarantee charge

• 1% initial guarantee charge applies to the portfolios placed under the High-Water Mark Guarantee.
This applies at the start of each 5 year guarantee period.

i) Ongoing Fees
The following are calculated as a percentage of the investment value and deducted monthly from the investment value.
i. Platform Fee
Exact Income portion:
• No platform fee payable
Other Investment Portfolios:
• Explicitly as a monthly unit deduction in the case of the other portfolios.
This scale operates on a tiered basis, whereby each portion of the investment value will be subject to the platform fee of the band in
which that portion falls.
Investment band Platform fee p.a.

First R1m 0.575%
Next R2m 0.345%
Next R7m 0.230%
Amounts above R10m 0.115%
For example, if the total investment value is R3,500,000 the platform fee will be calculated as follows:
0.575% × (R1,000,000 - R0) + 0.345% × (R3,000,000 - R1,000,000.01) + 0.230% × (R3,500,000 - R3,000,000.01)

= 0.394%
3,500,000
ii. Portfolio Fee

This is for the cost of the asset management of the portfolios and differs by portfolio. It is deducted implicitly in the unit price on a
daily basis. Please refer to the fund fact sheet for information on the portfolio fees.
All the portfolios above will publish their latest total expense ratio and transaction costs on their monthly fund fact sheets.
iii. Ongoing Advice Fee

Exact Income Fund:
• On-going advice fees of up to 0.575% p.a. (incl. VAT) of initial investment value included in pricing, from any point after
inception, paid monthly.
- The OAF paid will increase with an OAF roll-up rate specified by Liberty from time to time.
- Where different investments have different OAF roll-up rates, these will be weighted by the amount of income each has
bought, to determine the overall roll-up rate of the OAF. The overall OAF will then increase by this revised rate.
• Where a member has agreed to a lower OAF with his adviser, the difference will be invested in the Exact Income Fund monthly.
See the “additional income bought with OAF discount” below
For example:
Exact Income Additional Additional Income Closing

Opening
Year Month Age Premium IAF % IAF Bought ENR Income bought with OAF Balance:
Exact Income
(R p/m from 65) bought discount R/m
1 0 45 8/12 40 000.00 3.45% 1380 1,052.93 6.05% - 1 052.93 0 1,052.93
1 0 45 8/12 1000.00 3.45% 34.50 26.16 6.04% 1,052.93 26.16 0.6337639 1,079.73
1 1 45 9/12 1000.00 3.45% 34.50 26.04 6.02% 1,079.73 26.04 0.6490741 1,106.42
1 2 45 10/12 1000.00 3.45% 34.50 25.93 5.99% 1,106.42 25.93 0.6643148 1,133.01
1 3 45 11/12 1000.00 3.45% 34.50 25.81 5.97% 1,133.01 25.81 0.6795075 1,159.51
1 4 46 1000.00 3.45% 34.50 25.70 5.95% 1,159.51 25.70 0.6946545 1,185.90
1 5 46 1/12 1000.00 3.45% 34.50 25.58 5.92% 1,185.90 25.58 0.7095416 1,212.19
1 6 46 2/12 1000.00 3.45% 34.50 25.46 5.90% 1,212.19 25.46 0.7243101 1,238.38

Other Investment Portfolios:
• The fee will be equal to the Ongoing Advice Fee negotiated plus 15% (where applicable).
• On-going advice fees of up to 1.15% p.a. of investment value, from any point after inception, deducted monthly
• The transaction is done explicitly as a unit deduction.
• If the adviser changes, a new instruction must be received to pay the advice fee to the new adviser. Thus the Ongoing Advice
Fee will cease unless a new payment instruction is received.
iv. Service fees

No service fees apply to this product.
v. Guarantee fees
Please see 18. High-Water Market Guarantee.
j) Aggregation
Investment values from qualifying Liberty investment products will be aggregated with the Liberty Retirement Range product’s
investment value to determine the platform fee applicable to the Liberty Retirement Range product. This will lower the Liberty
Retirement Range product’s platform fee for members who have other investments with Liberty. If the member invests in a new
qualifying Liberty investment product at a future point, the platform fee will be adjusted accordingly. If the member cancels, transfers or
surrenders any of his/her qualifying Liberty investment products or takes an advance on any of these products then the platform fee will
be adjusted accordingly.
Products that qualify for the inclusion in the aggregation calculation include:
• Liberty Evolve Investment Plan
• Liberty Evolve Investment Plan (Sinking Fund)
• Liberty Gateway Investment Plan
• Liberty Evolve Retirement Annuity
• Liberty Evolve Pension Fund Preserver
• Liberty Evolve Provident Fund Preserver
• Liberty Retirement Annuity
• Liberty Pension Fund Preserver
• Liberty Provident Fund Preserver
• Liberty Offshore Investment Plan
• Liberty Living Annuity
For example, if a member has investments in two other qualifying Liberty investment products with an overall investment
value of R1.4 million and has a Liberty Retirement Annuity investment value of R600,000, the platform fee would be based
on R2 million (R1,400,000 + R600,000). The Liberty retirement product’s platform fee would be calculated as follows:
0.575% × (R1,000,000 - R0) + 0.345% × (R2,000,000 - R1,000,000)

= 0.460% p.a.
R2,000,000
The Liberty Offshore Investment Plan investment value will first be converted to Rands from US Dollars at the prevailing Rand US Dollar
exchange rate. After which it will be aggregated with the other investment values to determine the Liberty retirement product’s platform
fee.

k) Early Termination Fee
No early termination or paid-up charges apply on this Investment, except where a Member has transferred from an existing Liberty
retirement policy with existing early termination charges. In that case, any percentage early termination and paid-up charges that would
have applied in the Member’s existing Liberty retirement policy will be carried over into this Investment. If the Member decides to
transfer out of this Investment before the early termination period has expired, or stops or reduces his/her premiums before the paid-up
restriction period has passed, then Liberty will levy the early termination or paid-up charge against this Investment.
Where an early termination charge has been recorded on this Investment, the percentage early termination charge will reduce evenly
every month until the end of the early termination period. The end of the early termination period is when no early termination charge
applies to the Member’s Investment anymore and will be indicated on the Member’s quote.
Where an early termination charge has been recorded on this investment, the early termination charge will reduce evenly until the end
of the early termination period. The end of the early termination period is when no early termination charge applies to the Member’s
investment anymore and will be indicated on the Member’s quote.
l) Performance Fees
Where a performance fee is charged on a portfolio, the fee charged is included in the TER and will be described on the relevant portfolio’s
fund fact sheet.
m) External Asset Management Charges

All fees payable by the policyholder are fully disclosed on the quote, Liberty may pay the relevant asset manager a lower effective fee than
the fee charged to the member for the portfolio.
The implicit portfolio fee charged by the asset manager in the unit prices of the portfolio would include any performance related fees. The
TER as published in the Fund Fact Sheets provides the average annual cost of investing in the portfolio as measured over the most recent
36 month period.
13. Conversion to a Fixed Interest Annuity
Not applicable to this product as this is a pre-retirement investment product.

In order to take a Fixed Interest Annuity, the member would have to retire from the Liberty Retirement Range and obtain a quote for the
requisite fixed interest annuity. The Exact Income Fund is set up to provide a single life non-escalating fixed interest (life) annuity.
14. Early Retirement / Transfer
Where the Member retires before age 55 (except if due to ill health) or transfers benefits to another approved retirement fund.
There are no early termination fees except if the member transferred from a Liberty product with early termination charges. These are
transferred from the existing policy to the new Liberty Retirement Range policy.
Retirement Annuity Benefit payable = investment value – any applicable early termination charges
Pension / Provident Preserver Benefit payable = investment value – any applicable early termination charges
Early termination charges and paid-up charges

No early termination or paid-up charges apply on this Investment, except where a Member has transferred from an existing Liberty retirement
policy with existing early termination charges. In that case, any percentage early termination and paid-up charges that would have applied in the
Member’s existing Liberty retirement policy will be carried over into this Investment. If the Member decides to transfer out of this Investment
before the early termination period has expired, or stops or reduces his/her premiums before the paid-up restriction period has passed, then
Liberty will levy the early termination or paid-up charge against this Investment.
Where an early termination charge has been recorded on this Investment, the percentage early termination charge will reduce evenly every
month until the end of the early termination period. The end of the early termination period is when no early termination charge applies to the
Member’s Investment anymore and will be indicated on the Member’s quote.
Where a paid-up charge has been recorded on this investment, the paid-up charge will reduce evenly every month until the period the paid-up
charge was applicable over has passed. The paid-up charge will apply relative to the regular investment premium that has been transferred
from the pre-existing policy and not to additional investments or increases to that premium. If you reduce your premiums below the level that
was transferred from the pre-existing policy, before the end of the paid-up restriction period, Liberty will charge the paid-up charge.

15. Eligibility
This product is only available to individuals (i.e. only a natural person can be the member).
• 1 life assured is allowed
• This must be the same as the member
16. Entry age (max., min.)
• Minimum Age: 1 next birthday

• Maximum Age: 85 next birthday (new business)
• Maximum age for investment in Exact Income Fund: 90 – after 90 the money is switched to a money market fund.
17. High-Water Mark Guarantee
This is an optional benefit.

The Member may elect to protect his/her Lump Sum Investment in the Other Investment Portfolios by using a High-Water Mark.
Where the Member has selected the High-Water Mark Guarantee (“High-Water Mark Guarantee”) for his/her Lump Sum Investment in Other
Investment Portfolios (the Guaranteed Portfolios), the following terms and conditions pertaining to the High-Water Mark Guarantee will apply.
The High-Water Mark Guarantee will only apply on Lump Sum investments in Other Investment Portfolios and will not apply to any Recurring
Investments made by the Member to this Investment.
The High-Water Mark Guarantee is available on select Lump Sum Portfolios in the Other Investment Portfolios. These portfolios will be
confirmed when the Member elects to activate the High-Water Mark Guarantee.
The Guarantee Period for the High-Water Mark Guarantee is five (5) years from the date that the Member’s instructions have been received and
processed by Liberty (the Guarantee Start Date). The Guarantee End Date is five (5) years from the Guarantee Start Date.
At the Guarantee End Date, the Member’s High-Water Mark Guarantee will automatically be extended for another five (5) years, subject to
Liberty’s or the Member’s right to cancel the High-Water Mark Guarantee. The Member may remove the High-Water Mark Guarantee at any
time during the Guarantee Period.
If the Member removes the High-Water Mark Guarantee, any applicable guarantees will fall away and new guarantees and/or Guarantee
Charges may apply when choosing to add the guarantee at a later stage again. Guarantee Charges are non-refundable.
The initial Guaranteed Value is 80% of the amount allocated to the Guaranteed Portfolios. This increases with the highest aggregate return of
the Guaranteed Portfolios at the end of every three (3) months. Any unit deductions from the Guaranteed Portfolios will cause the Guaranteed
Value to reduce proportionally (this includes fees, charges and legislative withdrawals).
In this way, the High-Water Mark Guarantee protects the Member’s Guaranteed Portfolios from falling by more than 20% of his/her initial value,
increased with that Member’s highest aggregate return on his/her Guaranteed Portfolios (before the deduction of any explicit charges, fees
and withdrawals), during the Guarantee Period . The High-Water Mark Guarantee is determined at the end of every three (3) months from the
Guarantee Start Date. The Member’s Guaranteed Value is the value of the Guaranteed Portfolios as calculated by using the High-Water Mark
Guarantee
Liberty reserves the right to extend the High-Water Mark Guarantee after the five (5) year period and may amend the level of the guarantee,
the charges for the guarantee and the applicable Guarantee Period.
Additional investments into the Guaranteed Portfolios

Except to the extent provided for in terms of legislation and Liberty’s business rules applicable at the time, additional investments may not be
added to the Guaranteed Portfolios during the Guarantee Period. These will be invested in the Member’s choice of portfolio(s) for additional
investments, which are not guaranteed.
At the end of the Guarantee Period, the full investment value that has been accrued in all the portfolios (those with a guarantee and those
without a guarantee) will form part of the Investment Value which will fall under the High-Water Mark Guarantee, should the guarantee be
extended.
If the Member removes the High-Water Mark Guarantee, any applicable guarantees will fall away and new guarantees and/or guarantee charges
may apply when choosing to add the guarantee at a later stage again. Guarantee Charges are non-refundable
Switches into and out of the Guaranteed Portfolios
The assets in the Guaranteed Portfolios may be switched between the portfolios available at the time. However, assets in portfolios without a

guarantee may not be switched to the Guaranteed Portfolios during the Guarantee Period. At the end of the Guarantee Period, all the assets
in the Members’ various portfolios will form part of the investment value which will fall under the High-Water Mark Guarantee, should the
guarantee be extended.
Guarantee Top-up
Where the Member’s value of his/her Guaranteed Portfolios is less than the Guaranteed Value, the Member is entitled to a Guarantee Top-up:
• If the Member passes away during the Guarantee Period; or
• At the Guarantee End Date.
The Guarantee Top-up is calculated as the difference between the Guaranteed Value and the current investment value of Guaranteed Portfolios
and is reinvested proportionally in the Member’s Guaranteed Portfolios.
The Member will not be entitled to the Guarantee Top-up if:
• The Member chooses to remove the High-Water Mark Guarantee before the end of the Guarantee Period; or
• The Member transfers his/her Investment to another provider before the end of the Guarantee Period.
Guarantee Charges
At the start of each Guarantee Period, Liberty will confirm the Guarantee Charges that will apply for that Guarantee Period. These charges may
include an Initial Guarantee Charge and/or an Ongoing Guarantee Charge, or neither as the case may be at the time.
Where an Initial Guarantee Charge is levied, such charge will be calculated based on the Investment Value that will be guaranteed and shall be
deducted at the start of each Guarantee Period.
Where an Ongoing Guarantee Charge is be levied, such charge will be calculated monthly, based on the Investment Value at the time, and shall
be deducted from the Investment Value.
When the Member chooses the High-Water Mark Guarantee on his/her Investment, Growth Sharing will apply to the Guaranteed Portfolios.
Growth Sharing
When the Member chooses the High-Water Mark Guarantee on his/her Investment, Growth Sharing will apply to the Guaranteed Portfolios
during the Guarantee Period.
At the start of the Guarantee Period, Liberty will determine a Target Return and Growth Sharing Proportion on the Member’s Investment in the
Guaranteed Portfolios, for the duration of the Guaranteed Period.
The growth on the Guaranteed Portfolios (before the explicit deduction of any charges, fees and withdrawals) is measured against the Target
Return annually. When the Target Return is achieved, the Growth Sharing Proportion will be used to determine what portion of the growth
above the Target Return will be retained by Liberty and what portion will be retained by the Member.
The Member may select any combination of portfolios to achieve the Target Return.
Where the Member decides to remove the High-Water Mark Guarantee or transfer his/her Investment to a different provider, the Growth
Sharing applicable for the Growth Sharing Year to date will be deducted from the Member’s investment in the Guaranteed Portfolios.
n) Exact Income Guarantee

On the Exact Income Fund the “guarantee” is a level income amount payable monthly from the selected retirement date.
18. Guaranteed Insurability Benefit (GIB)
Not applicable to this product.
19. Investment Account
See also a)
The Investment Value at any time is equal to:
• the present value of the future cash flows accrued in the Exact Income Fund, and
• the number of units held in the investment account for each portfolio multiplied by the Sell Price of those units.

If all necessary requirements have been met before the daily cut-off on a particular business day, Liberty will allocate the amount at the closing
unit price on that day. If the requirements are only met after the daily cut-off, the amount will only be allocated at the closing unit price on the
next business day.
Liberty initially calculates the number of units added to the investment account of each portfolio by dividing the rand amount so allocated by
the appropriate portfolio unit price.
Liberty will deduct any ongoing platform fees, authorised advice fees and any applicable guarantee fees (if applicable) by deducting units from
the investment account at their sell price on a monthly basis.
If a legislative withdrawal is made from the Investment, Liberty will deduct the withdrawal from the investment account by selling units at their
selling price.
Any property capital bonus will be added to (or deducted from) the investment account by adding units (or deducting units) at their buy price
(or sell price). The property capital bonus is an annual adjustment to the return on certain portfolios with investments in property to reflect
the return achieved on these investments in the previous year. This will be added to or deducted from the investment account as soon as
practicable each calendar year.
When any income or dividend is received in the form of a distribution, this will either be:
• Allowed for in calculating the basic price; or
• Allocated to the Investment adding additional units to the investment account. The number of units added will be calculated based on the
Investment’s share of the distribution received less an allowance for tax, divided by the buy price of the units.
Exact Income Fund

The Exact Income Fund investment account increases and decreases in value, based on the market value of the assets backing the promised
future payments accrued as exact income.
Any capital investment in or switch out of the Exact Income Fund is converted to Exact Income and added to or subtracted from the Exact
Income.
The Investment Value of the exact income is the market value of the assets backing the promised future payments.
Where the Member has agreed to an ongoing advice fee on the Exact Income Fund less than the implicit 0.575% p.a., the balance of each
ongoing advice fee payment not paid to the financial adviser will be reinvested in the Exact Income Fund, increasing the exact income account.
Investment value of Exact Income Fund before Selected Retirement Date:

Note: References to “you” and “your” in this section refer to the member
If you decide to move your money out of the Exact Income Fund before the benefits become due to you, you will be subject to medical
underwriting and the value that you will get on exit will be adjusted depending on your health and life expectancy relative to the average
life expectancy of Liberty annuitants. This means that the value you get could therefore be significantly less, than the amount you originally
invested.
The value you receive is also influenced by many other factors, including:
• The length of time your money is invested with us. Our initial guarantee assumes that you remain invested in the Exact Income Fund
for the long term. If you decide to exit the Exact Income Fund before its benefits become due to you then we can no longer achieve the
expected return we initially secured for you (this will increase or decrease the value to you).
• Interest rates may change from the time your investment was made (if interest rates drop on average, then your value would increase.
Conversely, if interest rates rose on average, then your value would decrease).
• How long we expect annuitants to live (the longer we expect annuitants to live, the more your Exact Income Fund will be worth).
Below is an illustration of the impact these changes can have if you decide to change your commitment to your retirement and exit the Exact
Income Fund:
Value of your investment today: R 1000.00

If you exit the Exact Income Fund tomorrow and interest rates remain the same, your value could be: R 890.00
If you exit the Exact Income Fund tomorrow and interest rates decrease by 1%, your value could be: R 1124.00
If you exit the Exact Income Fund tomorrow and interest rates increase by 1%, your value could be: R 706.00
These values would also be subject to medical underwriting and this would impact the value further.

Underwriting on exit from the Exact Income Fund
The Exact Income Fund investment account increases and decreases in value, based on the market value of the assets backing the promised
future payments accrued as exact income. The Investment Value at any time is equal to: the present value of the future cash flows accrued in
the Exact Income Fund. As the number of future cash-flows payable to you out of the Exact Income Fund is dependent on your life expectancy,
medical underwriting will be performed to assess this present value
• Where underwriting applies, Liberty will adjust the benefit accordingly
• Remember that an investment in the “Exact Income Fund” is actually a right to a future income stream.
• Because of this, one should buy this to receive it as income, not to access the fund value before your selected retirement date – there are
unnecessary risks when you do (that of ill-health and of market volatility due to sensitivity to interest rates)
20. Investment Portfolio Rules
Using Blueprint Risk Analysis the member can determine their risk profile. The risk profiled portfolios simplify the portfolio choice significantly.
A selection of unit trusts is also available, with a focus on top performing asset management companies.
i. Portfolio Elections
Where the Member has selected the Exact Income Fund, the Member can choose to allocate the investment amount in accordance
with Liberty’s guideline or according to his/her own specified percentage, subject to the Liberty’s maximum limits at the time.
Liberty’s current automatic allocation to the Exact Income Fund is:
Age Guideline Allocation Maximum Allocation

More than 20 years to retirement 0% 0%
Less than 20 years to retirement, and
Below age 35 0% 0%
35 to 39 2.5% 5%
40 to 44 5% 10%
45 to 49 15% 40%
50 to 54 25% 80%
55 and over 25% 100%
• The member has the option to select to have their allocation to future portfolios increase automatically according to the
automatic allocation options above.
• This will not affect their past investments. To change past investment a member/adviser would have to submit a switch
instruction to Liberty.
The remaining portion will be invested the member’s choice of other investment portfolios.
Additional Lump sum investments will follow the lump sum Investment portfolio elections with the proportion allocated to the Exact
Income Fund.
For any recurring investments, the member can select their own selection of portfolios to invest into.
ii. Number of portfolios allowed

The same portfolio selection applies to both the Lump Sum investments and recurring investments, with up to 7 portfolios per
investment. The Exact Income Fund counts as an additional 1 portfolio and allows another 7 for the other investment portfolios.
iii. Portfolios available and portfolio fees

External managers (including the external manager involved in the CPI+ portfolio) may charge performance fees that are passed
directly onto members within the unit price.
iv. Portfolio grid

The investment General Portfolio Grid provides a list of portfolios that are available.

21. Joint Lives
Only one member per investment is allowed. The member is also the life assured on the investment.
22. Lump Sum phasing in option
• Allowed for the Other Investment Portfolios

• Phasing in is allowed from the Stanlib Money Market fund.
23. Minimum Lump sum and recurring investments
Minimum Initial Lump Minimum Initial Minimum Additional

Product Minimum per Portfolio
Sum Investment Recurring Investment Investment Amounts
R15,000 or
Retirement Annuity R15,000 R500 p.m. R100
R1,000 p.m.
Preserver Pension/
R150,000 n/a R100 R15,000
Provident
Investment Frequency:
Retirement Annuity Preserver Pension/Provident

Any frequency is allowed since this product has been set up as a multiple lump sum investment product. n/a
Members may select:
• Monthly, quarterly, semi-annually and annual investments; or
• As-and-when investments (future ad-hoc investments)
24. Options at selected retirement date
See also c) Benefits at Retirement
Liberty Retirement from the Fund takes place on the selected retirement date unless the Member elects to retire on a
Retirement different date. The Member may elect to retire and start receiving benefits at any age from 55.
Annuity
[R247 500], the full annuity can be taken as a cash retirement fund lump sum benefit. This amount is subject to
legislative limits at the time..
Where the Exact Income Fund was selected, the exact income accrued in this portfolio may be taken as a
single life non-escalating annuity underwritten by Liberty, and subject to Liberty’s minimum requirements. It is
guaranteed until the death of the Member. If the Member retires before or after the selected retirement date or
chooses a different life annuity type with Liberty, the exact income will be adjusted accordingly based on market
rates applicable at that time. Should the Member choose to use the funds in the Exact Income Fund to purchase
any other annuity type with Liberty or another provider, the Member will be subject to medical underwriting and
the Investment Value will be adjusted accordingly
If at retirement the member wishes to change the level Exact Income that has been guaranteed. This can be done
so by choosing a joint-life and/or escalating annuities. If this is chosen, the income will be adjusted proportionately.
If the Member retires before or after the selected retirement date or chooses a different life annuity type with
Liberty, the exact income will be adjusted accordingly based on market rates applicable at that time. Should the
Member choose to use the funds in the Exact Income Fund to purchase any other annuity type with Liberty or

Liberty another provider, the Member will be subject to medical underwriting and the Investment Value will be adjusted
Retirement accordingly.
Annuity
Any annuity purchased with the Investment Value shall be subject to the regulatory requirements applicable at
cont.
the time and Liberty’s business rules.
Liberty’s statutory actuary will determine the life expectancy of all Liberty annuitants from time to time (currently
85 for men and 89 for women) and in the event that the average 65 year old Liberty annuitant is expected to live
past the age of 100 for men and 104 for women at the Member’s selected retirement date, Liberty will make the
following income options available to the Member with the funds in the Exact Income Fund:
women), and payable until the death of the Member;
The Member will be notified in writing within three months of any changes to Liberty’s determination of life
The single-life non-escalating life annuity will also only be available if the annuity purchased provides an income
Liberty The benefit is the Investment Value on the date the Member actually retires from the Fund, subject to any
Pension / guarantee, and is payable as an annuity for life.
Provident Pension Preservers
Preserver
• Currently, up to one third of the Investment Value can be taken as a retirement fund lump sum less any
applicable tax.
• Any other annuity for life may be purchased with the balance at the prevailing annuity rates at the time.
• Currently, if the investment value of all the Investments held by the Fund on the Member’s behalf is less than
R247 500, the full annuity can be taken as a cash retirement fund lump sum benefit. This amount is subject
to legislative limits at the time
Provident Preservers
• Currently the full Investment Value* can be commuted as a retirement fund lump sum at retirement subject
to any applicable tax.
• Alternatively, any other annuity for life may be purchased with the Investment Value at the prevailing annuity
rates at the time.
Applicable to both Preservers:
• Where the Exact Income Fund was selected, the exact income accrued in this portfolio may be taken as
a single-life non-escalating life annuity (with no guarantee period) underwritten by Liberty, and subject to
Liberty’s minimum requirements.
• If the Member retires before or after the selected retirement date or chooses a different life annuity type
with Liberty, the exact income will be adjusted accordingly based on market rates applicable at that time.
with Liberty or another provider, the Member will be subject to medical underwriting and the Investment
Value will be adjusted accordingly.
• Any annuity purchased with the Investment Value shall be subject to the regulatory requirements applicable
at the time and Liberty’s business rules.
• Liberty’s statutory actuary will determine the life expectancy of all Liberty annuitants from time to time
(currently 85 for men and 89 for women) and in the event that the average 65 year old Liberty annuitant is

Liberty expected to live past the age of 100 for men and 104 for women at the Member’s selected retirement date,
Pension / Liberty will make the following income options available to the Member with the funds in the Exact Income
Provident Fund:
Preserver
- The guaranteed income secured through the Exact Income Fund, but at a later retirement date which
cont.
will be determined by Liberty (taking into account the life expectancy beyond age 100 for men and age
104 for women), and payable until the death of the Member;
- A reduced guaranteed income, as determined by Liberty taking into account the life expectancy
beyond age 100 for men and age 104 for women, at the Member’s original selected retirement date,
and payable until the death of the Member; or
- The guaranteed income secured through the Exact Income Fund, at the Member’s original selected
retirement date, until the Member reaches 100 (if the Member is a male) or 104 (if the Member is a
woman) being Liberty’s current expected average life expectancy. Thereafter, the annuity will be
reduced.
• The Member will be notified in writing within three months of any changes to Liberty’s determination of life
• The single-life non-escalating life annuity will also only be available if the annuity purchased provides an income
Retiring at different dates

It is possible to retire from the Exact Income Fund and Other Investment Portfolios at different dates, as these are different policies.
For instance, the member may decide to remain invested in the other investment portfolios and start receiving the level income provided
by the Exact Income Fund. They would then be able to retire from the other investment portfolios when they need to start drawing on
these to supplement the Exact Income provided.
Example:
Consider John, who has accrued R10 000 per month in the Exact Income Portfolio, payable from age 65. He will be turning 65 at the
end of next month, but investment markets are in a dip at the moment. He is happy that the R10 000 p.m. will provide him with enough
income initially, so he decides to only retire from this portion of his investment. The capital invested in the other investment portfolios may
then be accessed when he retires from that portion of his investment. Note that the 1/3 available as a cash commutation will available on
each retirement benefit separately, so when retiring at two different dates, a third of each benefit must be commuted to get the overall 1/3
benefit. When commuting up to 1/3 from the Exact Income Fund, one would receive a proportionately reduced income from this portfolio.
If for example John was in a different position, say wanting to retire from his other investment portfolios and Exact Income Fund at the
same time, he would have the ability to determine the 1/3 on his overall benefit and to potentially use the other investment portfolios to
process this disinvestment thereby not affecting his Exact Income which he has accrued over time.
25. Ownership
Liberty 1 owner allowed i.e. The Lifestyle Retirement Annuity Fund (PF 12/8/6776) owns the investment.
Retirement
The payer is the member and life assured.
Annuity
Cessions (Absolute and Collateral)
• Retirement Annuity investments may not be ceded.
Liberty 1 owner is allowed i.e. The investment is owned by either:

Pension / • Pension Fund Preserver: The Lifestyle Retirement Preserver Pension (PF 12/8/27974) owns the investment.
Provident
Preserver • Provident Fund Preserver: The Lifestyle Retirement Preserver Provident (PF 12/8/27975) owns the
investment.
The payer is the member and life assured.
Cessions (Absolute and Collateral)
• Pension / Provident Fund Preserver investments may not be ceded.

26. Paid-up Investments
Please see Section 12. Early termination and paid-up charges.
27. Payment
Lump Sum Investments or Additional Lump Sum Investment amounts

• In order to make lump sum or recurring investment collection as cost effective as possible:
• Lump Sum investments or additional investment amounts can be made by M65.
• Lump Sum investments can be deposited directly into Liberty’s bank account, using an M65 form, obtained by calling our call centre or
your Financial Adviser.
• Section 14 Transfers from other retirement funds – RA’s and Preservers
• Debit orders - A single debit order will be collected for Exact Income Fund and Other Portfolios.
• EFT payments can be made into the specified bank account, using the reference number provided (M65 process)
Commencement date of the investment

• The investment will only commence once all requirements (cash, FAIS, FICA, etc.) have been received.
• If all necessary requirements have been met before the daily cut-off on a particular business day, Liberty will start processing on that day.
• If the requirements are only met after the daily cut-off, the amount will start processing on the next business day.
It takes 8 business days to process the transaction for Recurring Investments
• Money must be receipted via approved debit orders.
28. Terms & Conditions
Click here for Terms and Conditions
29. Investment Term
The investment term will not have a minimum term. You are also never “forced” to retire.
If the member does not want to retire at the selected retirement date, then they can remain invested as the investment is open-ended.
However whenever the Member decides to retire, Liberty’s statutory actuary will determine the life expectancy of all Liberty annuitants from
time to time (currently 85 for men and 89 for women) and in the event that the average 65 year old Liberty annuitant is expected to live past
the age of 100 for men and 104 for women at the Member’s selected retirement date, Liberty will make the following income options available
to the Member with the funds in the Exact Income Fund:
• The guaranteed income secured through the Exact Income Fund, but at a later retirement date which will be determined by Liberty
(taking into account the life expectancy beyond age 100 for men and age 104 for women), and payable until the death of the Member;
• A reduced guaranteed income, as determined by Liberty taking into account the life expectancy beyond age 100 for men and age 104 for
women, at the Member’s original selected retirement date, and payable until the death of the Member; or
• The guaranteed income secured through the Exact Income Fund, at the Member’s original selected retirement date, until the Member
reaches 100 (if the Member is a male) or 104 (if the Member is a woman) being Liberty’s current expected average life expectancy.
Thereafter, the annuity will be reduced.
The Member will be notified in writing within three months of any changes to Liberty’s determination of life expectancy in the Exact Income
Fund as well as the various options available to the Member at retirement.
The maximum age at which a member is allowed to retire from the Exact Income Fund is 90. After age 90 the capital is switched to a money
market fund. They can then use this to retire at any future age of their choice.

30. Portfolio Descriptions and Availability Grid
For portfolio descriptions, please follow the below link. These are subject to availability as shown in the portfolio grid.
Portfolio descriptions
All portfolio availabilities are shown per product in the portfolio grid, please click on the link to access the grid.
General Portfolio Grid
31. Investment amount reduction/stopping investments
Members can start, stop, increase or reduce their recurring Investments at any time at no cost.
No paid up charges apply on this Investment, except where a Member has transferred an existing Liberty retirement policy with existing paid up
charges. In that case, any paid up charges that would have applied in the Member’s existing Liberty retirement policy may be carried over into
this Investment, at Liberty’s discretion. If the Member decides to transfer out of this Investment or stops or reduces their premiums before the
paid up restriction period has passed, then Liberty reserves the right to levy the paid up charge against this Investment.
32. Right to withdraw (Cooling-off Period) / Cancel from inception
Due to the nature of this product, it is not possible to withdraw from this investment after it has been implemented. However, you can choose
to move the investment to another approved retirement fund or take a withdrawal if you are legally entitled to do so.
33. Single Lump Sum Investments
Yes.
34. Switching
If the member wishes to switch from one portfolio to another, the following options are available:
• The Member can switch out of their chosen portfolios at any time subject to market constraints, legislative requirements or business
practice.
• The Member can also switch in or out of the Exact Income Fund at any time, subject to Liberty’s practice at the time, and based on the
prevailing annuity rates at the time.
• If the Member switches out of the Exact Income Fund, transfers to another approved retirement fund, takes a legislative withdrawal or
chooses to use the funds in the Exact Income Fund to purchase any other annuity type with Liberty or another provider at retirement,
the Member will be subject to medical underwriting and will be obliged to provide certain medical information or be subject to a medical
examination at Liberty’s request and at Liberty’s expense. After medical underwriting has taken place, Liberty will adjust the Investment
Value depending on the Member’s health and life expectancy relative to the average life expectancy of Liberty annuitants.
• Certain constraints may affect Liberty’s ability to invest amounts into a specific portfolio. These are factors such as where a portfolio is
either capped or closed, legislative or regulatory changes, other market constraints or changes in business practice.
• Should any of these constraints apply to a portfolio selected, Liberty will notify the Member in writing and s/he will, at that time, have to
select an alternative portfolio. If an alternative portfolio is not selected or no response is received from the Member, Liberty will invest the
investment value of the affected portfolio, and/or any future additional investment amounts to that portfolio, in a portfolio similar to the one
that the Member is currently invested in and which is available at the time or if no such a portfolio is available, in the STANLIB Money Market
Fund.
• Switches within the Guaranteed Portfolios are available.
• Switches from portfolios without the guarantee to portfolios with the guarantee are not allowed. This can only be done at the start of a
new Guarantee Period. (please refer to the High-Water Mark Guarantee section for more information)
• Switches are allowed from a local to another local portfolio, offshore to another offshore portfolio and from and offshore to a local portfolio
• The business rules at the time of switching will apply.

No fees are levied on switching. Liberty Life reserves the right to change this practice from time to time.
If the portfolio being switched into has a buy/sell spread, then this fee is incurred on switching.
• The portfolios which the member wants to switch to needs to satisfy Regulation 28 restrictions. Blueprint Online Servicing contains a built-in
Regulation 28 calculator. This can also be accessed at the Calculators.
Liberty’s current practice is to affect the switch within 7 business days at the next available price on the date the switch is affected or as soon as
any scheduled deduction of fees or previous changes requested by the Member has been completed. If the request is received after the cut-off,
it will be deemed to have been received the following day. In the event of market disruption or volatility, Liberty reserves the right to extend the
period before the next working day’s price is calculated.
Where the value of the investment account or a portion of the value of the investment account is switched from a portfolio where no guarantee
was provided to a portfolio with a guarantee, a new guarantee fee may be deducted. The new guarantee fee to be deducted is the fee that applies
at the date of the switch.
Switches into portfolios with guarantees can only take place on the fifth anniversary of the Commencement Date, and every five years thereafter
(if new guarantees are offered).
35. Surrenders/Advances
Surrenders and advances are not allowed on Retirement Annuities and Pension / Provident Fund Preservers as per legislation.
Access through legislative withdrawals and early retirement due to ill health is permitted. Please see above..
36. Taxation of Investment benefits
Growth within retirement funds is currently not subject to income or capital gains tax. Currently, at retirement, you may take a maximum of
one third of the investment value as a cash lump sum and the balance must be used to purchase an annuity. The cash lump sum is tax free
within certain limits and any amounts in excess of these limits will be taxable as prescribed by the Income Tax Act. The income received from
retirement funds after you have retired is subject to tax in your hands
Liberty issues tax certificates each year for any new voluntary money invested into a retirement annuity.
There may be tax payable on any lump sum withdrawals in terms of the current tax tables for withdrawals as set out in the Income Tax Act.
37. Case Study
John is 45 years old. He has decided to invest R100 000 in the Liberty RA because he loves the security that the Exact Income Fund provides.
He wants to invest everything in the Exact Income Fund, retiring at age 60, but his adviser cautions against this as he is still relatively young,
so should invest a portion of his investment in equities (or other asset classes generating a real return). He also notes the importance of
diversification. The current maximum that a 45 year old can invest in the Exact Income Fund is 40%. They agree to an upfront advice fee of
3.45% on the Exact Income Fund portion, but John doesn’t want to pay anything on the other portfolios.
The allocation is calculated as follows:
Lump Sum Investment:

Lump Sum Investment Amount R40 000.00 100% R60 000.00 100% R100 000.00 100%
Less: Initial Advice Fee* (R1 380.00) (3.45%) R0 0% (R1 380.00) (1.38%)
Less: Initial Guarantee Charge (optional) - - R0 0% R0 0%
Amount Invested R36 620.00 96.55% R60 000.00 100% R170 274.00 98.62%
In addition, John says that he can save about R1 000 per month to reach his retirement target. For his regular investment, he agrees to pay
3.45% of each investment on both the Exact Income Fund and OIP portions, so his allocation is going to be as follows.

Lump Sum Investment Amount R 400.00 100% R 600.00 100% R 1000.00 100%
Less: Initial Advice Fee* (R13.80) (3.45%) (R20.70) (3.45%) (R34.50) 3.45%
Amount Invested R386.20 96.55% R579.30 96.55% R965.50 96.55%

But how much Exact Income has been bought? And at what Equivalent Portfolio Return?
Guaranteed Income at age 60

From his Lump Sum Investment Amount (1)
R9 000 pa
From his Recurring Investment Amount(2) R93 pa
(1) This is based on the R38 632 allocated to the Exact Income Fund
(2) This is based on the first R386 allocated to the Exact Income Fund. Each month, the amount of Exact Income that can be bought
will differ slightly, depending on market movements and annuity rates applicable at the time.
For each, the EPR is given as follows:
Lump Sum Investment 7.2% p.a.

Recurring Investment 7.1% p.a.
This means that another portfolio would have to earn at least 7.2% p.a. over the period to retirement (which John selected as age 60)
to provide a better outcome, based on today’s annuity rates. The Recurring Investment EPR is therefore just applicable for the first
investment.
For OAF John pays 1.15% on the other investment portfolios, but nil on the Exact Income Fund, even though there is an 0.575% p.a.
included in the pricing. This 0.575% is then reinvesting in the Exact Income Fund over time.
How would the transactions build up then?

Well, the transactions for the other investment portfolios are built up as per normal, except that an initial advice fee is deducted before
investing the money, similar to endowments. The more interesting build up though is the Exact Income Fund. For each premium
invested, another bit of income in retirement is bought.
Exact Income Additional Additional Income Closing

Opening
Year Month Age Premium IAF % IAF Bought ENR Income bought with OAF Balance:
Exact Income
(R p/m from 65) bought discount R/m
1 0 45 8/12 40 000.00 3.45% 1380 1,052.93 6.05% - 1 052.93 0 1,052.93
1 0 45 8/12 1000.00 3.45% 34.50 26.16 6.04% 1,052.93 26.16 0.6337639 1,079.73
1 1 45 9/12 1000.00 3.45% 34.50 26.04 6.02% 1,079.73 26.04 0.6490741 1,106.42
1 2 45 10/12 1000.00 3.45% 34.50 25.93 5.99% 1,106.42 25.93 0.6643148 1,133.01
1 3 45 11/12 1000.00 3.45% 34.50 25.81 5.97% 1,133.01 25.81 0.6795075 1,159.51
1 4 46 1000.00 3.45% 34.50 25.70 5.95% 1,159.51 25.70 0.6946545 1,185.90
1 5 46 1/12 1000.00 3.45% 34.50 25.58 5.92% 1,185.90 25.58 0.7095416 1,212.19
1 6 46 2/12 1000.00 3.45% 34.50 25.46 5.90% 1,212.19 25.46 0.7243101 1,238.38
The Exact Income Fund income that the member buys every month changes in response to changes in interest rates, and as the
member ages.
By age 46 the member would have bought R1 185.90 per month (R1 4230.80 p.a.) from the age 65.
Remember that the Exact Income is paid on exactly the level secured at retirement. Due to the eroding effects of inflation, it is
important to keep track of the purchasing power of the income the member is buying. But inflation is not the only thing affecting the
member’s retirement income target: when they get a salary increase for example, they would want to maintain a higher standard of
living. Or if they get married: they may have to provide for another. In other words: the adviser is setting up a contribution plan, based on
affordability, for the member, to meet their retirement target. Since this target is shifting (and market returns are unsure), it is important
to keep reviewing this investment..
So how do the Ongoing Advice Fees work?

Suppose John agreed to the 0.575% p.a. advice fees implicit in the pricing for the Exact Income Fund. In the quote, there will be a rate
stating the level at which OAF on the Exact Income Fund will build up at, say 6% p.a. This rate is determined by Liberty from time to time,

and set with reference to the EPR applicable on current business.
So the first month’s OAF would be determined with reference to the contributions received up to that date. The next month this would
increase by the stated OAF growth rate, plus the new OAF applicable on the next contribution.
For example:
The OAF for the first month would be calculated as the R18.69=(R38 632+R386.32)*0.575%/12 (contribution allocated * OAF
per month). In the next month, this would be R18.78, assuming there was no additional contribution. The increase is R18.78/
R18.69=1.004815, which is 6% if you annualise, i.e. (1.004815)12-1=6% p.a.
This increase is set for these contributions, similar to the outcome at retirement. Each new contribution’s OAF increases with its
own OAF growth rate. Overall there would be a weighted average growth rate applied.
The full “build-up” of the OAF reference account, including the regular premiums is shown below. This account is only used to
determine OAF and no members benefits are determined from this account.
OAF Reference Account
Year Month Age Opening Balance Contribution Growth OAF (default) Closing Balance
1 0 45 8/12 0 50,000.00 0 50,000.00
1 0 45 8/12 50,000.00 965.80 267.2545 24.34 51,208.72
1 1 45 9/12 51,208.72 965.80 273.7152 24.91 52,423.32
1 2 45 10/12 52,423.32 965.80 280.2073 25.49 53,643.84
1 3 45 11/12 53,643.84 965.80 286.7311 26.08 54,870.29
1 4 46 54,870.29 965.80 293.2866 26.66 56,102.72
1 5 46 1/12 56,102.72 965.80 299.874 27.25 57,341.14
1 6 46 2/12 57,341.14 965.80 306.4935 27.84 58,585.59
At age 50 John wants to know what his investment value is

Although the investment value is available – it is just the present value (or market value) of the future payment stream – it can fluctuate
significantly since it is very sensitive to interest rates. The following value is provided as an illustration, assuming interest rates and
mortality rates are as we expected:
Exact Income Additional Investment

Opening Closing Balance:
Year Month Age Premium IAF % IAF Bought ENR Income Value at
Exact Income R/m
(R p/m from 65) bought month end
5 49 49 9/12 1 000.00 3.45% 34.50 20.78 4.79% 2,576.02 1.4683519 2,598.27 116,228.50
5 50 49 10/12 1 000.00 3.45% 34.50 20.68 4.77% 2,598.27 1.4798598 2,620.43 117,722.83
5 51 49 11/12 1 000.00 3.45% 34.50 20.58 4.74% 2,620.43 1.4913213 2,642.50 119,222.74
5 52 50 1 000.00 3.45% 34.50 20.49 4.72% 2,642.50 1.5027961 2,664.49 120,724.22
Here it is important to note two things:

• The investment value does not depend on the EPR. It is actually the present value of the future payments to the customer, which
depends on current interest rates.
• Since the asset used to structure the future payments to the customer is relatively illiquid, the investment value would be slightly
less than if you had to secure the same level Exact Income with a single contribution today (similar to a bid-offer spread on some
unit trust funds).
John decides that he hasn’t saved enough to retire at age 60 and wants to extend his selected retirement age. What effect
does this have on his Exact Income Fund?
The “investment value” doesn’t change. Neither does the OAF reference account or level of OAF. But since the Exact Income is only going
to start at a later date (i.e. fewer potential payments to John over the rest of his life), the level of Exact Income which Liberty guarantees
can be increased.

For example: Instead of having only R1 550 paid per month from age 60, we could pay John R2 200 per month from age 65.
So John gets to retirement, what happens with his Liberty RA and Exact Income Fund?
Suppose John managed to accumulate the following

Income per month R10 000 ?
Investment value R1m R2m
The income per month on the other investment portfolios is unknown: a quote would have to be produced. But the income on the Exact
Income Fund is guaranteed (for a single life non-escalating annuity).
John decides to take a third of his investment in cash as follows:

Cash R1m (subject to tax)
Capital remaining R1m R1m
With the remainder of his investment, John can do a number of things.

• He decides to take the convert the income in the Exact Income Fund to a CPI-linked annuity instead. We quote him R7 000 for a
CPI linked annuity.
• He uses the capital from his other investment portfolios to purchase a living annuity from STANLIB which he can use to supplement
the R7 000 that he will get every month
38. Version History
Description Date Version

New document 08 July 2015 Draft copy
Incorporated feedback 05 August 2015 Version 1
PR Updates 23 September 2015 Version 2
CD Updates 01 October 2015 Version 3
Agile 2 Updates August 2017 Version 4
Portfolio and VAT updates February 2019 Version 5
OAF updates August 2019 Version 6
Wording Updates October 2019 Version 7
Platform fee updates, aggregation and name change February Version 8

Entry Points
Transactions
Entry Turnaround Team

Process Manager Escalation
Point Times Leads
New Business 1-2

Mahosia Cheryl
(Requirements newbusiness@liberty.co.za Business Libertyinvest.esc@liberty.co.za
Mojela Rheeders
Management) Days
Money
1-2
Allocations and
Libinvfinance@liberty.co.za Business Lala Sharad Jan Smit sharad.lala@liberty.co.za
Special Debits
Days
(GateWay)
Money
Allocations
1-2
(Liberty Shane Ranjith
opsfinancedepartment@liberty.co.za Business ranjith.rajkumar@liberty.co.za
Retirement Rampersadh Rajkumar
Days
Range &
Evolve)
Special Mahosia
Special.quotes@liberty.co.za 4 Hours Mike Ellis mahosia.mojela@liberty.co.za
Quotes Mojela
1-2
Policy Mahosia Cheryl
LibInvPolDocs@liberty.co.za Business Libertyinvest.esc@liberty.co.za
Documents Mojela Rheeders
Days
Switches;
3-6
Adhocs; Tessa
info@liberty.co.za Business Ralph Meyer LibInvestServicingEsc@liberty.co.za
Phasing - In and Soares
Days
Fees
Contribution 1-2
Tessa
and Personality info@liberty.co.za Business Ralph Meyer LibInvestServicingEsc@liberty.co.za
Soares
Detail Changes Days
Payment
3-8
Requests Mpho Pranesh
info@liberty.co.za Business LibInvestServicingEsc@liberty.co.za
(Part; Full and Raphulu Singh
Days
Regular)
Refunds 7-210
Mpho Pranesh
and Right to info@liberty.co.za Business LibInvestServicingEsc@liberty.co.za
Raphulu Singh
Withdraw Days
5-7
Transfers and Pranesh
info@liberty.co.za Business Gert Botha LibInvSec14Esc@liberty.co.za
Sec 14 IN Singh
Days
Complex
1-2
Values (How Andrew Andrew
info@liberty.co.za Business LibInvAdminSysSupport@liberty.co.za
things are Foxcroft Foxcroft
Days
derived)


Liberty Tech Specfor Liberty Retirement Range

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Liberty Tech Specfor Liberty Retirement Range

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Liberty Investments

Product Technical Specifications

Liberty Retirement Range

Liberty Investments – Liberty Retirement Range Product Technical Specifications

Liberty Investments – Liberty Retirement Range Product Technical Specifications

These policies will be offered as indicated below:

Liberty Policy 1 Other Investment Portfolios* Other Investment Portfolios*

Portfolio Name Exact Income Fund Other Investment Portfolios Total

*Including VAT where applicable

Portfolio Name Exact Income Fund Other Investment Portfolios Total

*Including VAT where applicable

Liberty’s current Guideline allocations to the Exact Income Fund:

Age Guideline Allocation Maximum Allocation

Liberty Investments – Liberty Retirement Range Product Technical Specifications

• These guideline allocations may be used by customers initially.

Maximum 20 years to retirement

High-Water Mark Guarantee

Liberty Investments – Liberty Retirement Range Product Technical Specifications

Access Liberty Retirement Annuity Liberty Pension/Provident Fund Preserver

Liberty Investments – Liberty Retirement Range Product Technical Specifications

Liberty Retirement Range Overview 4 20. Investment Portfolio Rules 24

Liberty Investments – Liberty Retirement Range Product Technical Specifications

Liberty The Liberty Retirement Annuity:

Liberty The Liberty Pension / Provident Fund Preserver:

Liberty Investments – Liberty Retirement Range Product Technical Specifications

2. Automatic Contribution Increase (ACI)

The Liberty Retirement Annuity:

Liberty Investments – Liberty Retirement Range Product Technical Specifications

Liberty • The minimum for lump sum investments is R 15,000.

• There is no commission payable as defined under the Long-Term Insurance Act.

Liberty Investments – Liberty Retirement Range Product Technical Specifications

Lump Sum or Recurring Investment

ii. Additional Lump Sum Investment

Additional lump sum investments

iii. Recurring Investment Amount on the Liberty Retirement Annuity

Not available on this product.

8. Annuity Income Level

Not available on this product.

Liberty Investments – Liberty Retirement Range Product Technical Specifications

A maximum of 6 beneficiaries are allowed.

Liberty Investments – Liberty Retirement Range Product Technical Specifications

Liberty Investments – Liberty Retirement Range Product Technical Specifications

Liberty On retirement (after age 55):

Liberty Investments – Liberty Retirement Range Product Technical Specifications

Liberty Investments – Liberty Retirement Range Product Technical Specifications

Liberty Investments – Liberty Retirement Range Product Technical Specifications

f) Investments to ADD LIB Bonus

Liberty Investments – Liberty Retirement Range Product Technical Specifications

g) Overview of the fees involved

At inception Ongoing Fees

i. Initial Advice Fee

Liberty Initial Advice Fee (IAF)

Liberty Initial Advice Fee (IAF)

ii. Bid / Offer Spread (initial portfolio management fees)

iii. Guarantee charge

Liberty Investments – Liberty Retirement Range Product Technical Specifications

Investment band Platform fee p.a.

0.575% × (R1,000,000 - R0) + 0.345% × (R3,000,000 - R1,000,000.01) + 0.230% × (R3,500,000 - R3,000,000.01)

ii. Portfolio Fee

iii. Ongoing Advice Fee

Exact Income Additional Additional Income Closing

1 0 45 8/12 40 000.00 3.45% 1380 1,052.93 6.05% - 1 052.93 0 1,052.93

1 4 46 1000.00 3.45% 34.50 25.70 5.95% 1,159.51 25.70 0.6946545 1,185.90