THE COMPOSITION OF THE MEMBER ACCOUNTS
All monthly contributions, excluding contributions to risk benefits and administration costs, plus all bonuses be it positive or negative, are allocated to the Fund Credit account of members. Members will be able to see the value of the Fund Credit on a daily basis, once they have registered on the website.
Although contributions accumulate in the member’s Fund Credit account, it remains a Fund asset and accrues to the member only on termination of membership.
- Normal retirement age is 65 years.
- Members may voluntarily retire from age 50.
- An extended retirement age up to 69, on condition that the employer and member mutually agree accordingly, is allowed. The usual contributions will continue.
Although the benefit does not differ whether a member retires or resigns, it may be tax efficient to retire rather that to resign. More information is available on request.
The MGF is a defined contribution retirement fund (DC fund) where the member will always, even upon resignation, be entitled to at least all member contributions plus the contributions of the employer after the contributions for risk benefits and administration cost have been deducted plus or minus the net return.
Benefits are as Follows:
Members contribute at a minimum rate of 7.5% of their annual salary which contribution is allocated in total to the member’s Fund Credit.
For members who joined before 1 July 2012 the standard contribution rate of employers is 22% of a member’s pensionable income. For members joining after July 2012 it is 18%. In total 4.25% of salary is utilized to finance risk benefits (approximately 3.65%) and administration costs (approximately 0.6%). The balance of the employer’s contribution is credited directly to the member’s Fund Credit. Employers may, with the consent of members and the Management Committee, contribute at a lower or higher rate, subject to such conditions as imposed by the Management Committee.
- Contract Appointments
Such members may structure their contributions according to their requirements but subject to the following minimum:
Although contributions accumulate in the member's fund credit account, it remains a fund asset and accrues to the members only on termination of membership.
- 4.25% (minimum) employer contribution.
- 7.5% (minimum) employee contribution.
- RESIGNATION AND DISMISSAL
A lump sum equal to the member’s total Fund Credit.
On retirement a member will become entitled to an annuity obtained by appropriation of the Fund Credit on that date, less any amount he elects to take as a lump sum. Such annuity must be arranged with an external insurer. A member may elect to take any portion, even 100% of the Fund Credit as a lump sum payment.
- DEATH OF A MEMBER (See also notes further on)
- Members with less than 5 years’ membership:
- Members with more than 5 years' membership:
- A lump sum equal to four times annual salary PLUS Fund Credit.
- Unnatural causes: A lump sum equal to four times annual salary PLUS Fund Credit.
- Natural causes: A lump sum equal to two times annual salary PLUS Fund Credit.
- FAMILY FUNERAL PLAN
Family funeral cover is paid to members and their families as follows from 1 July 2015:
* Full time student up to 25 years and permanent disabled children irrespective of age, included.
|Child aged > 14 but < 21*
|Child aged > 1 but < 13
|Stilborn to < 1
The Benefits Claim Form is available from SANLAM. The email address for submission of claims is: email@example.com and fax number is 012 339 1375.
A claim expires after 6 months.
- MEDICAL DISABILITY (See also notes further on)
A member who qualifies for a medical disability benefit will be entitled to four times annual salary or Fund Credit, whichever is the greater, up to the age of 60 after which the benefit scales down monthly up to the age of 65 to two times annual salary or Fund Credit whichever is the greater.
A member who has less than five years’ membership and qualifies for a medical disability benefit due to an injury, illness or condition which he/she:
- knew about or could reasonable be expected to know about;
- was diagnosed with;
- was treated for; or
- displayed symptoms of
within twelve month preceding the commencement of membership of the Fund, shall be entitled to the greater of two times annual salary or Fund Credit.
Risk benefits (death and disability) are subject to adjustment depending on the claims experience. The actuary of the Fund monitors this on a continuous basis to advise the Management Committee (Board of Trustees) to make adjustments timeously. Enquiries should be made to verify whether any changes were made in this regard since the date of the brochure.
- In the event of a member joining the Fund after 26 April 2013 between the ages of 60 and 65, the death and disability benefits will be limited to 1 times salary and not 2 times or 4 times salary as mentioned hereinbefore. (See also note 4 below.)
- The benefit accrues as an annuity but the member may by prior notification to the Fund elect to take any portion, even 100% of the benefit as a lump sum payment.
- In the event of a member staying on after 65, no contribution will be made in respect of risk benefits and therefore no risk benefits (funeral, death & disability) will be payable. The total contribution made by the member and an employee after 65, will be allocated to the member’s fund credit except the portion utilised for the administration costs, approximately 0.75 percent.
- REDUNDANCY OR RETRENCHMENT
A member who becomes redundant or is retrenched is entitled to the member’s total Fund Credit plus an additional amount financed by the employee. Payment of the relevant benefit is subject to receipt of the employer’s contribution. The additional amount is determined according to years prior to normal retirement. The maximum additional amount payable is equal to the Fund Credit.
Retrenchment benefits for members appointed on contract may vary in terms of the contract entered into between employer and employee.
- NOMINATION FORMS
Members should complete the prescribed nomination of beneficiaries form and submit it together with copies of certified I.D. or birth certificates. If available to firstname.lastname@example.org or fax to (012) 683-3996. This will expedite the payment of death benefits. Please make sure that the total percentage equals 100%.
- FINANCIAL ADVICE
and its employees are not registered as financial advisors and are by law prohibited from giving financial advice. It may only furnish factual information. If members need financial advice they should obtain it from registered financial advisors. The Fund can be approached for contact details of financial advisors.