Member Booklet - UKZN Retirement Fund - University of KwaZulu ...

Summary of Disadvantages
You may not have any control over the future management of your retirement savings.
If you leave your new employer before retirement, you will likely have to transfer your
retirement savings from this employer's fund.
You will not have any access to your retirement savings until you leave the new employer or
retire.
v) Taking Your Benefit as a Cash Payment
This is also an option but it is NOT recommended unless your benefit is
very small. Ideally you should try to preserve your retirement savings for
their real purpose, which is to provide you with a sufficient retirement
benefit. However, for small benefits this is sometimes not practical or cost
effective.
Taxation on any amount in excess of R22 500 is payable if you elect the cash option.
(Refer to Section 9. for details)
6.2 DEATH BENEFIT COVER AFTER LEAVING SERVICE
Your 5 x annual Fund Salary insured death benefit will cease when you leave service. However,
until age 60 there is an option available to continue cover under an individual insurance policy
in your own name for an amount up to the value of your death benefit cover at your date of
withdrawal. This option is subject to any conditions imposed by the insurer, but you will not have to
provide evidence of health (other than an HIV test).
Your application for continuation of cover must be made within 30 days of your leaving service.
(Details of how to apply for this option are set out in an exit document that is available on the
will be supplied to you by Human Resources when you leave the Fund).
6.3 TEMPORARY ABSENCE
In the event that you take unpaid leave you will be advised
Division of your options. These are to either maintain your risk and retirement benefits at your own
cost, or to temporarily stop these benefit.
If your unpaid leave period exceeds one year, you are required to make application to the Trustees
to continue your membership. This must be done prior to expiry of the first year of unpaid leave.
If you choose to cease paying all contributions for the purpose of the risk benefits, you will
be treated as a new member when you return to service. Hence, you will be subject to the
usual pre-existing conditions clause with regards to disability benefits.
- 12 -