Retirement Benefits
Normal Retirement – Normal Retirement Date is the last day of a month in which a member turns 60, except for members that are employed in the Free State and Northern Cape Regions, for whom it will be the last day of the month in which a member turns 55.
Early Retirement - Members may, with the consent of their employer, retire any time after attaining age 55 years, except for reasons of ill-health in which case members may retire at any time prior to the normal retirement date.
Late Retirement - Members may, with the consent of their employer, remain in service and a member of the Fund, after attaining age 65 years, and retire at a date later as agreed with their employer. However, in such instances, members no longer participate in the Fund’s risk benefits.
Benefit at Retirement
You may, with the consent of your Employer, retire any time after attaining age 55 years, except for reasons of ill-health in which case you may retire at any time prior to your Normal Retirement Date.
When you retire, you will become entitled to payment of your Fund Credit.
At retirement your benefit is payable as an annuity. However, you may elect to receive a portion of your benefit as a lump sum. The lump sum payable will be dependent on your Vested Right and Non-Vested Right (not applicable to pension funds). This is explained in more detail below.
IF THE MEMBER STAYS IN THE FUND OF WHICH THEY WERE A MEMBER ON 1 MARCH 2021:
IF THE MEMBER TRANSFERS TO ANOTHER FUND AFTER 1 MARCH 2021:
MEMBERS WHO WERE YOUNGER THAN 55 YEARS OLD ON 1 MARCH 2021
The following diagram provides more detail on what the Vested and Non-Vested Rights are:
MEMBERS WHO JOIN THE FUND ON OR AFTER 1 MARCH 2021
If a member joins on or after 1 March 2021, all future contributions and investment return thereon will be regarded as a Non-Vested Right and it will be treated as follows:
Any part of an amount transferred into the Fund that enjoyed Vested Right status in the previous fund will retain its Vested Right status in the Fund.
At retirement, you may elect from the following options:
Death and Disability Benefits
Death Benefit - Upon the death of a member, a lump sum benefit equal to R20,000, together with his/her Fund Credit, is payable to the member’s beneficiaries.
This amount will be reduced by any deductions in respect of tax, outstanding housing loans and any other deductions allowed in terms of the Pension Funds Act.
The benefit will be paid to the member’s dependants and nominees.
Permanent disability - Should a member, in the opinion of the Trustees, become permanently incapable of following his/her own occupation or a similar occupation, the member will be entitled, after a waiting period of six months, to a lump sum disability benefit equal to R20,000, together with his/her Fund Credit.
Once a member has received a disability benefit, their membership in the Fund will cease and he/she will not be entitled to any further benefits from the Fund (i.e. a death or retirement benefit).
Temporary disability - Should a member, in the opinion of the insurer, become temporarily incapable of following his own occupation, he / she will be entitled, after a waiting period of one month, to a monthly benefit equal to 50% of his / her monthly wage for a period of 5 months after the waiting period.
A member in receipt of this benefit will remain a member of the Fund during the period that these premiums are paid and will remain covered for all other benefits.
Withdrawal Benefits
Members of the Fund that leave the employ of their employer will become a paid-up member in the Funds until the Funds receive written instructions from the Member to make a cash payment or to transfer to another approved fund.
The Paid-Up Member’s Fund Credit will remain in the investment portfolio that he / she was invested in immediately prior to the termination of service with his / her employer.
Paid-Up Members will receive a Paid-Up Membership Certificate within 2 calendar months of becoming a Paid-Up Member.
The following conditions will apply to all Paid-Up Members:
- No new contributions will be accepted;
- Cover for all approved and ancillary unapproved benefits will cease;
- No deductions will be made from the Paid-Up Member’s Fund Credit for risk benefits;
- The same administration fees, operational costs and investment administration fees that applied prior to the Member becoming a Paid-Up Member shall continue to apply to the Paid-Up Member;
- The Paid-Up Member’s Fund Credit will remain in the investment portfolio that he / she was invested in immediately prior to the termination of service with his / her employer.
- In the event of death, retirement and early retirement, only the Member’s Fund Credit will be payable; and
- Members will be given access to retirement benefits counselling before any withdrawal benefit is paid or any transfer is made to another fund. (Please refer to the section entitled Retirement Benefits Counselling that follows)
Resignation - If a member leaves the service of their employer before normal retirement age for any reason other than retirement, ill-health, death or disability, the member will be entitled to the full value of the Fund Credit after a three-month waiting period.
Retrenchment - If a member leaves the service of their employer before normal retirement age as a result of retrenchment, the member will be entitled to the full value of Fund Credit as soon as possible after such an event.
It is important to understand the options available and in this regard, it is advisable to obtain professional advice before making any decisions.