Death Benefits

Should you pass away while you are a Fund member, your beneficiaries will be entitled to certain benefits, which will be distributed in line with the Fund Rules and the requirements laid out in the Pension Funds Act.

Members with more than 5 years' membership:

• A lump sum equal to four times annual salary PLUS Fund Credit.

Members with less than 5 years’ membership:

• 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.

Section 37C of the Pension Funds Act and the Fund Rules state that in the event of your death, your benefit in the Fund should be distributed as follows:

• To dependants; or
• Dependants and nominees; or
• If there are no dependants, to nominees (but any outstanding debts in your estate first have to be settled); or
• If there are no dependants or nominees, to your estate.

The Trustees of the Fund have to make sure by law that all your financial dependants are first taken care of, before any money is paid to your nominees. Financial dependants include, but are not limited to, any children, illegitimate children, adopted children, and any spouses. When you have children or a spouse or any people (including children) who are financially dependent on you, they should be reflected as beneficiaries on your Beneficiary Nomination form which is available on this website under the Member Forms tab.

The Administrator has to first trace all your dependants, and listing them on your form makes this process easier and quicker for the Administrator.

Our lives are constantly changing. Did you get married or have any children since you joined the Fund? Perhaps you adopted a child or now have a relative who is financially dependent on you who was not when you initially joined the Fund? Maybe you have lost a child or a spouse? Did you go through a divorce since becoming a member of the Fund? Be sure that your Beneficiary Nomination form is complete, correct, and up to date at all times.

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Family Funeral Plan
The funeral benefit is structured as follows:

Legislation prohibits the payment of the funeral benefit to any other person but the nominated beneficiary. Please ensure that you have completed the Funeral Benefit Nomination form, which is available on this website under the Forms tab.

The Benefits Claim Form is also available on the Forms page. The email address for submission of claims is: sgrdeathclaims@sanlam.co.za. A claim expires after 6 months.

Notes:

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 Fund) to make adjustments timeously. Enquiries should be made to verify whether any changes were made in this regard since the date of the brochure.

1. 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.)
2. 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.
3. 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.