Death Benefits

To qualify for this benefit the employer and the Scheme must have been notified of your death.

 

What benefit will my dependents receive?

Category 1 Members: members of Schools that joined after 1 April 2001

Your dependants will receive a taxable lump sum multiple of your salary based on your age at date of death PLUS a refund of your accumulated credit.

 

Category 2 Members: members of Schools that joined before 1 April 2001.

Your dependants will receive a lump sum as a multiple of your annual salary based on your age at date of death PLUS a refund of your accumulated credit.

Please refer to the Summary of Benefits Poster for the correct multiples table.

 

Remember to complete  Beneficiary Nomination Form

Although the Trustees will follow your wishes in terms of your nomination of beneficiary form as far as possible, the final decision of who will receive the death benefit rests with the Trustees, who are required in terms of the Pension Funds Act, to ensure that all dependants are considered.

You are reminded to update the nomination of beneficiary forms regularly to prevent any unnecessary delays in the distribution of death benefits.

 

Please remember

You need to make sure that the amount of cover for death and disability provided through the Scheme is right for you and your family. If you feel it may not be adequate, you may want to buy additional cover outside the Scheme.

 

Payment of death benefits may take a long time. Make sure that your spouse will have access to funds during this period.  Speak to an approved financial advisor to assist you with your financial planning.

 

Tax affairs must be up to date at all times as any lump sum benefit pay-out due from the Scheme is subject to tax clearance from SARS.

Disability:

Benefits are subject to acceptance by the Insurer in terms of the policies held in the names of the employers outside the Fund.

To qualify for a disability benefit you must be unable to perform your own or similar occupations. Medical evidence to support your claim must be submitted.

What benefit will I receive?

Category 1 Members: members of Schools that joined after 1 April 2001

You will receive a lump sum multiple of your salary based on your age, after a 6-month waiting period PLUS a refund of your accumulated credit PLUS interest.

Please refer to the Summary of Benefits Poster for the correct multiples table.

The maximum benefit is R5 million.

In the event of an application for disability benefits being unsuccessful, you may opt for one of the withdrawal options above, provided that you have in fact left the service of your employer and qualify for the abovementioned benefits.

 

Category 2 Members: members of Schools that joined before 1 April 2001

You will receive 87% (75% of pensionable salary plus 12% Employer Waiver) subject to a maximum monthly benefit of R165 000, paid after a 3-month waiting period.

Income benefits may be reduced or suspended by the Insurer if a member is considered recovered or capable of earning an income. Income benefits will escalate by CPI (subject to maximum of 4%) per annum during disablement.

Whilst you are in receipt of a disability income benefit you will remain a full contributing member of the Fund, which means that you continue to be covered for death in service benefits and will continue to accrue pension benefits.

Disability income benefit ceases at the earliest of:

  • Age (65) – limited to your school’s NRA
  • death of a member
  • date Insurer rules disability has ceased.

The benefit may not exceed the member’s total Guaranteed Package after the deduction of tax at the start of the waiting period.