Defined Contribution Fund is a fund in which an individual employee’s pension benefit is determined based on the contributions made and the investment earned. The amount of an employee’s actual retirement benefit cannot be determined until he has retired. Employees bears the investment risk.
By Employer
Contributions
By Member
ADMITTANCE REQUIREMENTS
- Aged older than 16 younger than 55 years
- Proof of good health in NOT REQUIRED
FUND CREDIT
The fund credit is equal to:
- Member’s Contributions
- PLUS – Employer’s Contributions
- LESS – Admin and Risk Cost
- PLUS – Investment Return
Benefits
Resignation or dismissal
Lump sum equal to Member’s Fund Credit
Medical disability
Lum Sum equal FUND CREDIT
PLUS 4(four) times the member’s annual salary
| Member / Pension | R40 000 |
| Spouse | R40 000 |
| Children >= 14 years | R25 000 |
| Children >= 6 but < 14 years | R25 000 |
| Children >= 1 but < 6 years | R10 000 |
| Children (under 1 year) | R10 000 |
| Stillborn | R10 000 |
Note: The above benefits may differ depending on a member’s personal circumstances
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.
Retirement on pension
Lump Sum equal to Member's Fund Credit NB: Member to take maximum of 1/3 as a lump sum and 2/3 must purchase annuities
Benefit Statement - Newsletter - Council Visits - General Meeting - Tracing of Beneficiaries
Lump Sum equal to Member's Fund Credit NB: Member to take maximum of 1/3 as a lump sum and 2/3 must purchase annuities
Member-elect to keep his / her Pension in the Fund
Actuarial values can be transferred
