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Skip Navigation LinksRetirement Fund Administration

Legacy Beneficiary Fund

A safe and efficient solution for minor dependants of deceased members.

According to the Pension Funds Act, a retirement fund’s Board of Fund is responsible for allocating a deceased member’s death benefits. This is especially important when the deceased’s beneficiaries are minors.

Sanlam developed the Legacy Beneficiary Fund to assist in this regard. The Fund offers a secure home for benefits payable to minor beneficiaries. Legislation allows the Fund to receive and administer benefits upon the death of a member.

How the Fund Works

The objective of the Legacy Beneficiary Fund is to safeguard beneficiaries’ benefits that have been transferred from other retirement funds. It provides beneficiaries with:

  • A monthly income paid from the beneficiary’s investment. The amount is determined by the Board of Fund and is based on financial needs and the amount of capital available.
  • Ad hoc withdrawals from the investment to cover a beneficiary’s unexpected or unbudgeted expenses

Transfers

With the Legacy Beneficiary Fund, there is no minimum benefit on transfers.

Investment mandate

As the Fund’s primary objective is to preserve capital and provide liquidity to cover monthly income requirements, it has a conservative investment mandate.

Benefits transferred to the Fund are invested in the Inflation Plus Portfolio, and the underlying investments are made up of a combination of Prudential IPF, SMMI Solution and Investec portfolios.

Depending on market performance and available capital, the Board of Fund may make changes to its investment strategy from time to time.

The Fee Structure

The fee structure of the Sanlam Legacy Beneficiary Fund is as follows:

Type Levied on Fee (excluding VAT)
Management fee Capital value 1.55% excluding VAT
Investment management fee Portfolio market value 0.10% per year*
Contribution to the contingency reserve account Per beneficiary per month R6 per month

*Fees may vary depending on Asset Manager selection and portfolio composition.

Fund Administration

For us, fund administration is a priority, and we strive to provide a cost-effective and secure IT platform and to communicate with members and trustees in a way that is easy to understand. The Fund is administered by Sanlam Corporate, and our administration systems are supplied and supported by MIP Holdings (Pty) Ltd.

MIP-EB and MIP-FINANCIALS are the core modules of the MIP standalone system, designed specifically for employee benefits administration. MIP-EB is used to perform member record administration tasks, while MIP-FIN is a fully integrated financial system used for recording all transactions triggered by events in MIP-EB.

The system also integrates with other systems in use, namely:

  • A customer relationship management and workflow application
  • Investment administration software
  • The Retirement Fund Web where beneficiaries can view their benefit statements

How to Apply

Applying to register as a participating fund

By providing a signed resolution confirming its decision to register, the transferring Board of Fund can apply to register as a participating fund in the Legacy Beneficiary Fund.

Applying to register new beneficiaries of a deceased member

The Board of Fund of the deceased member’s retirement fund must resolve that the deceased member’s death benefit must be transferred into the Legacy Beneficiary Fund in accordance with their final distribution. We will then set up the required beneficiary account in accordance with the final distribution.

If you would like to find out more, please see the Legacy Beneficiary Fund brochure or contact us directly.

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