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6.7 Impact of Divorce Orders

The State regards pension assets as special assets worthy of enhanced protection. Pension benefits are not reducible, transferable or executable, except in the limited instances outlined in the Pension Funds Act and certain other Acts of Parliament. One of the exceptions to this general rule is the payment of a pension benefit to a former […]

6.5 Disability claims

Very few funds these days offer true disability benefits. These benefits are usually offered through a separate insurance arrangement. The rules of a fund must specify the action to be taken in the event of a member becoming disabled. The following options on disability are most typical in retirement fund rules: In a defined benefit […]

7.4 Annual Disclosures

In addition to the general information, the following information must also be disclosed to pensioners and dependents of deceased members on an annual basis: The date of the annual disclosure. A statement that the annual disclosure must be read together with the initial disclosure and the previous annual disclosures, and that it updates the initial […]

7.3 Notification to Members of Specific Events

Notification to members must be given to members in the following special events and are considered in the subsection following: Fund restructuring Withdrawal from service Retirement Deferred benefit Death A.  Fund restructuring Fund restructuring includes the following events: Voluntary termination of the fund in terms of Section 28 of the Pension Funds Act. Withdrawal of […]

7.2 Minimum Communication Requirements

Following extensive consultation and substantial agreement with representatives of the retirement fund industry, it was decided to improve communication between funds and their members by setting minimum disclosure requirements to which all funds had to adhere. These minimum disclosure requirements were set out in Circular PF 86. Every new member must be provided with an […]

7.1 Introduction

Section 7D (1) (d) of the Pension Funds Act provides that the Board of Trustees must ensure the adequate and appropriate communication of information to the members of the retirement fund. In conjunction with the Act, Circular PF130 also deals with communication and access to information in the discussion of Principle 9: Communication and Access […]

6.11 Service Provider Requirements for Claims

When a claim is made against a risk benefit of a pension fund, it is important to consider the required documentation to be submitted to the service provider. Often claims are not resolved quickly due to the lack or incompleteness of documentation. Once the documentation is submitted, it may be necessary for the service provider […]

6.10 Home Loans and Benefit Payments

Section 37D makes provision for certain deductions, which may be made from retirement benefits when they become due. Before dealing with the mechanics of home loans, it is important to understand exactly what home loans can be granted by a retirement fund. Retirement annuity funds do not generally become involved in-home loans, as there is […]

6.9 Insolvency and Benefit Payments

The disposition of retirement benefits in the event of insolvency is provided for in Section 37B of the Pension Funds Act. In case of the sequestration of the estate of any person, who is entitled to a benefit payable in terms of the rules of the fund, the benefit will not be deemed to form […]

6.8 Impact of the Maintenance Act on Benefit Payments

Pension benefits are regarded as extraordinary assets which enjoy additional protection. However, the law allows certain deductions to be made from the pension benefit in terms of Section 37D of the Pension Funds Act. One of these deductions is maintenance claims. Maintenance obligations are imposed by the law on certain parties, depending on the nature […]