Membership of the Electrical Industry Kwazulu Natal Pension Fund provides the following benefits –
The Fund currently provides a death benefit of two times your pensionable salary plus your accumulated fund credit.
Please ensure that your nomination of beneficiary form is updated on a regular basis and given to HR to keep on your employee file. Should you pass away, your wishes could be considered in terms of the information provided on your nomination of beneficiary form.
Should you become temporarily or permanently disabled to do your or a similar job, you will receive a monthly income of 50% of your current monthly earnings. There will be no tax payable on this benefit. You will continue to contribute to the fund until the normal retirement age, which is 65.
You will be entitled to take one-third of your accumulated fund credit in cash (subject to tax), and the balance of two-thirds will be utilized to provide you with a monthly pension. The one-third will be taxed as per the Income Tax Act. The first R500 000 will be tax-free. If your total retirement benefit is less than R247 500, you will be allowed to take 100% of the benefit in cash, subject to tax.
Accumulated fund credit
You are entitled to your accumulated fund credit which consists of your and the employer contributions, minus the deductions (as described in the contributions page), plus investment growth.
You have the following options on withdrawal:
- Leave your benefit in the Fund as a paid-up member until normal retirement age, or until you want to withdraw from the Fund.
- Move your benefit to your new Employer’s Fund (no tax).
- Transfer your benefit to a Pension Preservation Fund (no tax).
- Take your benefit in cash – tax will be deducted in terms of the Income Tax Act. The first R25 000 will be tax-free.
Your funeral benefits are as follows:
|Child 14 – 21
|Child 6 – 13
|Child 1 – 5
|Stillborn – 11 months