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

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7. DISABILITY BENEFIT DISABILITY WHILE IN SERVICE BEFORE RETIREMENT (i) Monthly Disability Benefit If, before reaching your Normal Retirement Date you become disabled due to illness or an accident, and are assessed as being unable to perform the work of your own occupation, or any other reasonable occupation for the University, for which you are suited or could reasonably be expected to become qualified, you will be regarded as being temporarily disabled and will qualify for a monthly disability benefit. After a three month waiting period, during which the University maintains payments from your sick leave, a monthly benefit equal to your full Fund Salary may be payable by the Benefit Arrangement for as long as you are considered disabled. The maximum period for payment of a monthly disability benefit is 21 months. During this period you will be required to submit periodic medical assessments. While you are in receipt of a monthly disability payment your membership of the Fund will continue, and contributions will be paid to the Fund on your behalf. The monthly disability benefit will be subject to tax in the same way as your salary. If you are still disabled at the end of 21 month period, your monthly disability payments will cease and you will be evaluated by the insurer for payment of a total and permanent disability benefit. If you die while you are receiving a monthly disability benefit, the lump sums described in Section 5 and Section 9 will become payable. (ii) Lump Sum Disability Benefit Two years, from when you first became unable to work, you will be assessed by the insurer for a total and permanent disability benefit. If you are found by the insurer to be so disabled that you are unable to perform the work of your own or any other occupation, your Fund membership will cease and a lump sum benefit will be paid, to a maximum of: 3 x annual Fund Salary at the date of your disablement, PLUS Your Fund Credit, which will be subject to tax as a retirement benefit. (Refer to Section 9. for more details) Should you become disabled between ages 55 and 60, the 3 x Annual Salary benefit will be reduced by 20% for each year or part thereof that the onset of your disability precedes your attaining age 60. The lump sum disability benefit ceases at age 60. If at this stage you are found by the insurer not to be totally and permanently disabled, and you are still not able to return to work, your case will be referred to the Division for evaluation. - 13 -
8. FUNERAL BENEFIT 8.1 AUTOMATIC FUNERAL COVER If a member of the University of KwaZulu-Natal Retirement Fund and Benefit Arrangement dies while in employment, a lump sum funeral benefit of R20 000 is paid by the Benefit Arrangement. If their spouse or a dependent child dies while they are still a Fund member, a funeral benefit is also paid. Since 1 August 2013 the funeral benefit has been insured. All funeral benefit payments are subject to the terms of the insurance policy in place at the time, the most relevant details of which are set out for your information. A copy of the full policy will be made available Amount of the Funeral Benefit R 20,000 is paid if you or your spouse dies. If a dependent child dies, the amount paid depends on the child's age, as follows: R 20,000 R 20,000 R 10,000 R 6,670 R 3,335 is paid for dependent children between ages 22 and 26, provided proof of registration of such children as full time students at a recognised school or tertiary institution is provided (previous maximum age was 23) is paid for children aged between 14 and 22 years (previous maximum age was 18) is paid for children aged between 6 and 13 years is paid for children aged between 1 and 5 years is paid for children under 1 year (including stillborn babies after 26 weeks) A child who is permanently incapacitated may qualify for a funeral benefit at any age, subject to certain conditions. A maximum of eight dependent children are covered under the policy. If you have more than eight dependent children as set out above, please notify the Fund Office. Dependent Children Dependent children who are registered on your UKZN staff medical aid scheme will automatically be covered for funeral benefits if they are under age 22. If you are not a member of an UKZN staff medical scheme, you must provide a certified copy of your medical aid membership card and complete, sign and submit a Funeral Nomination Form. If you have dependent children who are not covered under your medical aid, you are required to complete and sign a Funeral Nomination Form. Please attach copies of the birth certificates or identification documents for all your dependent children. A Funeral Nomination Form can be obtained http://retirementfund.ukzn.ac.za. Please send the original, completed and signed Funeral Benefit Nomination Form and supporting documents to the UKZN Retirement Fund Office, Room 314 Administration Building, Westville Campus. Scanned documents and faxes are not accepted. Definition of Spouse in the Policy Your spouse is taken to be a party to a marriage recognised in terms of either the Recognition of Customary Marriages Act, 1998 or the Civil Union Act, 2006, or to a union accepted as a marriage according to the doctrines of Asiatic religion. - 14 -
Page 1 and 2: UNIVERSITY OF KWAZULU-NATAL RETIREM
Page 3 and 4: INTRODUCTION The University of KwaZ
Page 5 and 6: 1. JOINING THE FUND 1.1 MEMBERSHIP
Page 7 and 8: 3. CONTRIBUTIONS TO THE FUND If you
Page 9 and 10: 4. RETIREMENT BENEFITS 4.1 NORMAL R
Page 11 and 12: 6. LEAVING SERVICE 6.1 LEAVING SERV
Page 13: Summary of Disadvantages You may no
Page 17 and 18: It is your responsibility to adjust
Page 19 and 20: 9.3 DEATH BENEFITS The death benefi
Page 21 and 22: It is important to obtain appropria
Page 23: 12. THE RULES Every retirement fund

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