Defined Benefit
Defined Benefits is a Fund that pays a specific amount of benefits. It calculates benefits based on salary times number of years of service. Employer bears the investments risk.
It is a fund where the benefits are defined in terms of the rules. In this type of fund, benefits are generally guaranteed and are not dependent on the investment returns of the fund or on the level of employee and employer contributions. This means that when a member retires or withdraws, the amount they receive is determined by their pensionable salary and years of service in the Fund. Importantly, the benefits are not based on the contributions made on behalf of the member.
DISCLAIMER:
Please be aware that the Bonus Service indicated in the service record on a benefit statement applies exclusively to a member’s retirement benefit. It is not utilized in the calculation of a Resignation or Withdrawal benefit.

By Employer
22%
18%
15%
Contributions
By Member
7.5%
7.5%
7.5%
ADMITTANCE REQUIREMENTS
- Be employed by a local authority.
- Aged older than 16 younger than 55 years
- Proof of good health in NOT REQUIRED
Benefits
The primary objective of this Fund is to service the retirement needs of the previously disadvantaged employees within local Government so as to provide the most favourable retirement benefits to employees
Death Benefits (member)
(Member 7.5% - Employer 22%) Leaving Spouse and/or Minor children - Lump sum equals (3) three times annual salary
(Member 7.5% - Employer 18%) Leaving Spouse and/or Minor children - Lump sum equals (2) two times annual salary
(Member 7.5% - Employer 15%) Leaving Spouse and/or Minor children - Lump sum equals (1.5) one and a half times annual salary
Spouse and Children monthly pension calculated at possible service. Leaving no Spouse and/or Minor children - Lump sum = the greater of once (1) annual salary or Twice the members contribution ONLY.
Ill Health Benefits
(Member 7.5% - Employer 22%) Less than 10 years Service: 3 X Annual Salary (Lump Sum Only)
(Member 7.5% - Employer 18%) Less than 10 years Service: 2 X Annual Salary (Lump Sum Only)
(Member 7.5% - Employer 15%) Less than 10 years of Service: 1.5 X Annual Salary (Lump Sum Only)
10 years service and more: Lump Sum (1/3 of total benefit). Plus: Monthly pension for life (Calculated on factors at the age 60)
Resignation Benefits
(Member 7.5% - Employer 22%) Lump Sum Only: The greater of 1.5 x Total Member's Contributions OR Minimum Benefit calculated by the actuary
(Member 7.5% - Employer 18%) Lump Sum Only: The greater of 1.2 x Total Member's Contributions OR Minimum Benefit calculated by the actuary
(Member 7.5% - Employer 15%) Lump Sum Only: The greater of 1.1 x Total Member's Contributions OR Minimum Benefit calculated by the actuary
Early Retirement Age 55
Once off cash lump sum
Lump Sum equal to 1/3 of total benefit
PLUS: Monthly pension for life
PLUS: Annual Bonus
PLUS: Annual Increase subject to investment performance of the fund
Normal Retirement Age 65-70
Once off cash lump sum
Lump Sum equal to 1/3 of total benefit
PLUS: Monthly pension for life
PLUS: Annual Bonus
PLUS: Annual Increase subject to investment performance of the fund

Death Benefits (Pensioner)
Monthly pension spouse : = 50% of pensioner’s monthly pension before death.


Member/Pensioner R40 000

Extended Funeral Cover: R25 000
- You may add a maximum of four (4) additional adults to be covered, strictly member’s biological parents and parents-in-law only.
- A six (6) months waiting period applies for the 4 additional adults covered’
Pension backed Housing Loans:
Provider | IEMAS FINACIAL SERVICES |
Collateral | 80% of members resignation benefit |
Interest Rate | Prime lending rate |
Repayment period | Maximum 20 years |
Purpose | Utilise for members own property |

After Care Services
- Benefit Statement
- Newsletter
- Council Visits
- Tracing of Beneficiaries
