How the Fund Works
Membership
The minimum requirement for a new member to belong to the Fund is an initial transfer from an approved fund to the value of R25 000. This minimum amount is not applicable on any subsequent transfers from an approved fund to the Fund. Read moreBenefits from a pension fund can only be transferred to the Sanlam Plus Pension Preservation Fund and benefits from a provident fund to the Sanlam Plus Provident Preservation Fund.
Retirement date
The retirement date is 70 years but members are permitted to retire early – from age 55 and onwards.
Retirement benefits
Members’ retirement benefits consist of an annuity policy purchased with the member’s share. Members may convert the benefit or part thereof to a lump sum payment. Members, who belong to the Sanlam Plus Pension Preservation Fund, may only convert a maximum of one-third of the retirement benefit to a lump sum.
Disability benefits
A member’s retirement benefit becomes payable if the member, in the opinion of the Board, becomes permanently incapable of carrying on his or her occupation due to sickness, accident, injury or incapacity through infirmity of mind or body.
Death benefits
The member’s share in the Fund is payable when he or she dies. The death benefit is payable in the form of an annuity policy purchased with the member’s share. Dependants or nominees may request to convert the benefit or part thereof to a lump sum payment. Read more
The Trustees determine the distribution of death benefits due to beneficiaries of deceased members in terms of Section 37C of the Pension Funds Act, No. 24 of 1956. Where the Trustees are of the opinion that it would not be in the interest of a minor beneficiary that his or her benefit be paid to his or her parent or guardian, the benefit may be paid to a registered beneficiary fund.
The Trustees have approved the use of the Sanlam Trust Beneficiary Fund as well as the Legacy Beneficiary Fund. The Board of Trustees will only be able to pay the benefits allocated to minor beneficiaries into a trust in very limited circumstances, for example where the member has nominated a trust to receive the benefits on behalf of the minor.
Withdrawal before retirement
A member may apply to make one preretirement withdrawal (for each transfer made into the Fund) from the Fund at any date before the retirement date, provided the rules of the transferring fund do not prohibit this. Read moreThereafter a member will not be allowed to make another withdrawal before the retirement date, or disability or death. Such withdrawal is not deemed as retirement and is taxable according to the withdrawal tax table of the Income Tax Act.
Investments
The Trustees have approved a range of institutionally priced investment portfolios, including smoothed bonus, single manager and multi-manager investment options.