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Benefits for the employee

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The fund is registered with the Financial Services Board in terms of the Pension Funds Act, 1956, and in accordance with the provisions of the Pension Fund’s Act and the rules of the fund, members are only allowed to gain access to their equitable share in the fund in the event of the following:

  • Retirement (from age 55)
  • Death of the principal member of the fund (prior to retirement)
  • Resignation of the employee from the employ of the employer (prior to retirement)
  • Retrenchment or dismissal of the employee by the employer (prior to retirement)
  • Transfer to another approved fund (prior to retirement)

Retirement Benefit

At retirement at any age between 55 and 70, the member will receive the equitable share (net contributions plus interest) in the fund as a lump sum or, if preferred, a portion or the full value paid by means of a monthly pension. The member's risk benefits, i.e. death, disability and funeral cover, will cease.

Resignation Benefit

Upon termination of service with an employer, the member's risk benefits, i.e. death, disability and funeral cover, will cease. The member is entitled to the equitable share in the fund (net contributions plus interest) and this benefit can be taken in cash or it can be transferred to a Preservation Fund or a Retirement Annuity.  Alternatively the equitable share can be transferred to another fund offered by the new employer (should the member die before retirement, the benefits will be payable to his or her dependents). The resignation benefit is taxable in terms of the Income Tax Act.

Death Benefits in the Fund

In the event of death before retirement, the member's dependents and/or beneficiaries will receive a cash benefit. The cash benefit will consist of the equitable share in the fund (net contributions plus interest) and this will be payable to the dependants of the member as prescribed in Section 37C of the Pension Funds Act.

Death Benefits in the Separate Group Schemes

In the event of death of the principal member before retirement, the member's dependents and/or beneficiaries will receive a cash benefit. The cash benefit will consist of the death cover offered by the chosen plan as well as the family funeral benefit.  Death cover is provided without any medical examinations until age 65. Any person who joins the fund on a plan providing death cover of R75,000 or higher may be required to provide medical evidence of health prior to cover being granted by the insurer. Should this be required, such person will be informed in writing by the administrators, and provided a reasonable time in which to submit such required evidence of health. In the event of the death of a member's spouse or child (under the age of 21), a funeral benefit will be payable to the member according to the applicable option.

Waiting period applicable to death benefits under the Separate Group Schemes

All new members joining the Fund will be covered for death and family funeral benefits, but only after three months continuous membership if the cause of death was natural.  In the event of accidental death, the benefit is payable immediately.  This waiting period is designed to protect the members of the fund by managing the payment of the benefit.  Should a death claim thus arise due to natural causes within the first three months of membership, the death and family funeral benefit will not be payable. 

Total and permanent disability in the fund

Should your employee become permanently disabled before the age of 60, he or she will receive a cash benefit from the fund.  The cash benefit will consist of the equitable share in the fund (net contributions plus interest) and this will be payable to the member.

Total and permanent disability in the Separate Group Scheme

All new members joining the Fund will be covered for disability benefits only after a period of six months if the natural causes are not pre-existing medical conditions.  In the case of a benefit due to bodily injury caused by accidental, violent, external and visible means this period is three months. The benefit is only due after six months of continuous membership, and a waiting period of six months after date of disability has expired.  The member will receive a cash benefit equal to the total of the disability cover offered by the chosen plan on approval of the claim by the insurer.  If the onset of disability occurs within 5 years prior to the member’s attainment of age 65, the amount payable will be reduced by 20 percent of the disability benefit offered by the chosen plan, for each year or part thereof by which the onset of such disability precedes the member’s 65th birthday. This waiting period is designed to protect the members of the fund by managing the payment of these benefits.  Therefore, should a disability claim arise due to natural causes illness is a natural cause within the first six months of membership, the benefit will not be payable.

Important note in respect of the death, disability and family funeral benefits (Risk Cover)

Should a monthly premium not be received in any one month, the risk cover will terminate if the overdue premium is not paid through a double debit in the following month.  If the double debit is rejected, Absa Consultants & Actuaries will issue an off-risk letter; and those members will then not be covered for death, disability or family funeral benefits as from the first day of the first month for which no contributions were received.  If arrear premiums are received subsequently, the member will be subject to the waiting periods described above from the date the premium is re-instated. Premiums can not be re-instated retrospectively.

War and Riot Exclusions

There is a war and riot exclusion and terms and conditions may vary from time to time.  Please contact the fund administrator for details in this regard.

Communication

Each participating employer will be issued withy a formal certificate of participation and each member will be issued with a membership certificate once the first contributions have been received.  Every member will receive an annual benefit statement, which will reflect the member’s equitable share in the fund, as well as the cover for death, disability and family funeral benefits under the associated separate group schemes.  The benefit statements will be forwarded to the participating employer for distribution amongst employees.  A circular covering aspect of importance will also be sent to participating employers on an annual basis together with the annual benefit statements.

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