Anglican Church of Southern African

CPSA Provincial Pension Fund

A Member's Guide to the CPSA Provincial Pension Fund

 Back to Contents

Preparing for retirement

Whilst the CPSA Provincial Pension Fund is an outstanding pension fund, clergy find themselves in a unique environment during the course of their ministry. Unlike secular organizations, clergy are provided with significant non-monetary benefits which have an impact on providing for retirement. Dioceses provide housing, parishes pay for telephone, electricity and services, and vehicle allowances are part of the ‘packages’ provided to clergy. The difficulty is that none of these benefits are pensionable and accordingly when clergy reach retirement, the loss of these benefits is significant.

Bearing the above in mind it is never too late to begin planning for your retirement. There are some steps that every member of the pension fund should take to ensure a seamless move into retirement.

Financial Advisor

It is essential for all members to form a relationship with a FAIS registered financial planner. A FAIS registered advisor is registered with the Financial Services Board and is licensed to provide financial advice to clients, both corporate and private. The benefit of having a professional look at your overall financial well-being is that shortfalls in your planning will be identified and remedial steps put into place to correct the financial under-provision. Diocesan Administrators and the Principal Officer are not licensed to provide advice to individuals and it cannot be stressed enough the importance of finding the services of an advisor who you trust and who can assist you in your financial planning.

One way of providing extra funding for your retirement is to make voluntary contributions into the CPSA Provincial Pension Fund. This can be done through your Diocesan Office. The benefit of making voluntary contributions into the Fund is twofold. On the one hand the additional retirement funding put into the pension fund will enhance the value of pension on date of retirement. The second advantage is that, unlike Retirement Annuities, the voluntary contribution cost of administration and investment is carried by the pension fund and to that end all of the voluntary funds contributed are applied to retirement funding.


We see it time and time again. A member submits documentation to proceed on retirement and the payout of the commutation is delayed because either the member is not registered for tax or the member’s tax is not up to date. It is vitally important that members are registered for tax and that this tax status is maintained after retirement. Maintaining your tax status after retirement is important because on the death of the member the seven times death benefit becomes due and payable to the member’s beneficiaries. Significant delays are often experienced by widows and the their children when the tax directive that is applied for by the Administrators is not received. Registering and maintaining you tax status is your responsibility and it is not possible for the Diocese or the Administrator to obtain tax clearance.

Nomination of Beneficiary Forms

On the death of a member the Board of Trustees is required to disburse the death benefit. Although it is only a guide to the wishes of the member, it does assist the Trustees enormously to have the member’s expression of wish on file when determining the distribution of the death benefit. These forms are available from you Diocesan Secretary or from the Principal Officer.


Whilst having a will in place is not a requirement for the Pension Fund, having a will in place does assist your spouse in winding up the estate. If an individual dies without a will the estate is classified as ‘in testate’ and this status compounds time taken to finalise an estate principally because the spouse needs to register with the master of the High Court to be appointed the executor of the estate.

Other retirement planning

For many people retirement is an emotionally difficult time in their life. However retirement doesn’t have to be emotionally painful. Retirement can be a wonderful stage in anyone’s life if they prepare adequately for it. Whilst in no way being definitive there are four significant challenges faced by retirees.

There is fear of the unknown. While many people have done financial planning to prepare for their retirement years, very few take the time to think about, explore and plan what they will actually do when they retire. Not knowing what to do when retired, and facing a lack of structure can often be terrifying.

Other emotions are relief and a sense of freedom. When people have had their whole lives structured by parents, teachers, having children, the church, the thought of structuring their own time is wonderful. They look forward to doing what they want to do, when they want to do it. They anticipate the flexibility they will have when they’re on their ‘own clock,’ and find that very exciting. They may use their new freedom to do the things they’ve dreamed of doing for years and never had the time to things such as gardening, home repairs, golfing every day, volunteering, traveling, etc.

A fourth emotion is depression. If people don’t develop interests and activities that are relevant and meaningful to them, they may slip into depression as increasing numbers of older people are doing. Hard driving women and especially men whose identities are so closely connected to their careers tend to have an especially difficult time in this transition if they haven’t cultivated other interests and don’t seek help in doing so.

In this regard the Board of Trustees have embarked on a process of developing a DVD aimed at providing guidance for clergy approaching retirement in the hope that the transition from ministry to retirement can be as free of anxiety as possible.


We hope this guide has proven useful to you. Please contact the Principal Officer or your Diocesan Secretary if you have any questions relating to the information in this guide.

All content © Anglican Church of Southern African. All rights reserved.