Death benefit
Please read this important notification regarding your premiums for death benefit cover.
The cost of this benefit is deducted from the monthly contribution paid on behalf of the member by the Fund.
The total death benefit is the balance in your Member Credit Account Account, PLUS
Twice your annual pensionable salary, PLUS
If you have a qualifying life partner (spouse): a pension of 35% of your pensionable salary is paid to your life partner.
If you don’t have a qualifying life partner, but you have children, this 35% of pensionable salary will be shared between them and will be paid until they reach age 18 (or age 24 in the case of full-time students).
Your beneficiaries can be divided into two groups:
|
Dependants |
Dependants include a spouse, life partner, children and anyone else who may be financially dependent on you. |
|
Nominees |
Nominees are beneficiaries who are not financially dependent on you. |
Section 37C of the Pension Funds Act and the rules of the Fund state that, in the event of your death, your benefit should be distributed as follows:
Your Nomination of Beneficiary Form is used to guide the Board when allocating the death benefit. They have the right to distribute your death benefit to dependants and/or nominees in a manner that they believe to be fair and just to all parties.
Any portion of your benefit that you choose to take in cash will be taxed as follows:
| Lump sum Amount | Rate of Taxation |
|
R0 – R550 000 |
0% |
|
R550 001 – R770 000 |
18% of the amount above R550 000 |
|
R770 001 – R1 155 000 |
R39 600 plus 27% of the amount above R770 000 |
|
R1 155 001 and above |
R143 550 plus 36% of the amount above R1 155 000 |
Any benefit previously received tax free will be deducted from the tax-free amount.
After retirement date, or if you are a deferred pensioner, you no longer qualify to receive a death benefit from the Fund.