BENEFITS AVAILABLE TO BOTH FUNDS

CONTRIBUTIONS TO THE FUND

The total amount contributed to the Fund represents 16% of pensionable earnings.

Of this 16.0%, 12% goes towards retirement savings, 3% is used to pay for death benefits, funeral benefits and disability benefits, while the remaining 1.0% is used to meet Fund expenses.

The provision of Risk Benefits is subject to affordability and is therefore subject to change.

FUND CREDIT

Fund Credit is the sum of all the contributions allocated to retirement savings, increased or decreased by investment return. The amount of investment return will depend on the amount earned by the Fund's investments which are managed by Asset Managers appointed by the Board of Trustees.

TAX ON BENEFITS

All benefits which become payable may be subject to tax and may, therefore, be reduced by an amount of money to be paid to the South African Revenue Services (SARS).

DEATH BENEFIT

If a contributing member of the Fund passes away prior to age 65, their beneficiary(s) will be paid a death benefit of 5 times their annual pensionable salary. For example, if your monthly wage is R5, 000, the death benefit will be R300, 000 (R5, 000 x 12 months x 5). Contributing Employees aged between 65 and 70 qualify for a R100 000 death benefit.

Payment of the death benefit is subject to one contribution having been made within the two months prior to date of death. If death occurs within the first three months of membership of the Fund, unless death is as a result of an accident, the death benefit shall not be paid.

Fund Credit

Beneficiary(s) will also be paid the member's Fund Credit.

FUNERAL BENEFIT

As a contributing member prior to age 65, members and their immediate family will be covered for funeral benefits. The following benefits are payable:

                                                  
NOTE: An unmarried child is covered up to the age of 21 years and up to the age of 25 years if a full-time student. Member must, at claim stage, be able to provide proof from a recognised educational institution that the child was a full-time student at date of death. Payment of the funeral benefit is subject to the member being a current contributor of the Fund at the date of death.

DISABILITY BENEFIT

If, as a contributing member of the Fund prior to age 65, and based on the medical evidence submitted, the Insurer of this benefit considers a member to be totally disabled from performing their occupation, the member will receive the following benefit after a period of three (3) months from the date of their disablement:

A disability benefit of 75% of the members average pensionable salary during the period of 12 months preceding their disablement will be paid. For example, if the members average monthly pensionable salary is R5,000, the benefit will be R3,750 per month. This benefit will be paid for 21 months and will commence after the 3 month waiting period has expired.

After the 21 month payment period, and if the disability is considered to be permanent and total, a lump sum benefit of 5 times the members annual pensionable salary will be paid and membership of the Fund will cease. You will also be paid your Fund Credit.

Details of injuries and illnesses that are not covered for the above insured benefit are given in the Rules of the Disability Benefit Scheme.
Payment of the disability benefit is subject to one contribution having been made within the two months prior to date of disability.

WITHDRAWAL BENEFIT

If a member is either retrenched dismissed or resigns, they may claim their Vested Fund Credit and Savings Pot Balance on the date of leaving employment.

MANAGEMENT AND ADMINISTRATION OF THE FUND

The Fund has been established as a privately administered Fund, controlled by a Board of Management. The Board is made up of representatives of the employees and the employers.

Alexander Forbes Financial Services provide consulting and actuarial services for the Fund.

The KwaZulu Natal Master Builders & Allied Industries Association is the Administrator of the Fund.

The Fund is governed by a set of Rules that have been registered with the Registrar of Pension Funds