To qualify for this benefit the employer and the Scheme must have been notified of your death.
What benefit will my dependents receive?
Your employer will elect what percentage they pay to the Insurer. Based on this percentage your dependants will receive a taxable lump sum that is based on a multiple of your annual pensionable salary and your age at date of death PLUS a refund of the member’s accumulated credit.
Please refer to the Summary of Benefits Poster for the correct multiples table.
Remember to complete a 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.
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.
Death After Retirement
To qualify for this benefit the employer and the Scheme must have been notified of the death.
The benefit will depend on the pension you purchased either from the Scheme or from a registered Insurer
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. Benefits are subject to acceptance by the insurer in terms of the policies held in the names of the employers outside the Scheme.
Benefits are subject to acceptance by the Insurer in terms of the policies held in the names of the employers outside the Scheme.
What benefit will I receive?
You will receive 87% (75% of pensionable salary plus 12% Employer Waiver) of monthly pensionable salary subject to a maximum monthly benefit of R165 000, paid after a 3 month waiting period.
Disability benefit ceases at the earliest of:
- normal retirement age
- death of a member
- date insurer rules disability has ceased.
Income benefits will increase by CPI per annum during disablement.
The benefit may not exceed the member’s total Guaranteed Package after the deduction of tax at the start of the waiting period.
Whilst you are in receipt of a disability benefit you will remain a full contributing member of the Scheme, which means that you continue to be covered for death in service benefits and will continue to accrue pension benefits.
Income benefits may be reduced or suspended by the Insurer if a member is considered recovered or capable of earning an income.