What are my benefits?
As a member of Thacsa Pension Fund you are not only ensuring that you are making provision for your retirement, you also have the peace of mind that you and/or your family will be covered in the case of any unexpected event such as your disability or even death. You can download a summary of the benefits here: Summary of costs and benefits 1 November 2018
There are a number of scenarios that could play out:
1. Withdrawal – ending service before actual retirement
If you withdraw your Fund Credit before retirement – this includes resignation, retrenchment or dismissal from your current job – your accumulated savings and investment will be paid to you as a one-off payment after tax is deducted.
The amount payable to you will determine how much tax you will have to pay.
Prevailing SARS rates are as follows:
|Taxable Amount (R)||Rate of Tax|
|0 – 25 000||0%|
|25 001 – 660 000||18% of amount exceeding R25 000|
|660 001 – 990 000||R114 300 + 27% of amount exceeding R660 000|
|990 001 – and above||R203 400 + 36% of amount exceeding R990 000|
If you move from one job to another it is almost always advisable to preserve your investment and not spend the cash windfall on some extravagance. Always try to re-invest your Fund Credit into some form of investment that will continue to grow for your retirement. Using your Fund Credit before time could negatively impact on your ability to retire comfortably one day.
The name of the retirement game is to preserve, preserve, preserve your investment.
If you are unsure of exactly what to do it may be advisable to use the services of a financial advisor. Click here for a list of advisors.
Download the Benefit Claim Form here or contact the help desk for assistance.
2. Normal retirement
Assuming all goes well your normal retirement age is 60, but you can retire from age 55. If your Fund credit is R247 500 or less you have the option of taking the full amount as a cash payment. If your Fund credit exceeds R247 500 you can be paid 1/3 in cash and the remaining 2/3 as an income. You also have the option of using all of your Fund Credit to purchase a monthly pension. It is always advisable to contact your financial advisor for more information on these options.
Here are three possible scenarios for your retirement income:
• Single-life annuity
This single-life annuity only provides you with an income and will cease when you die. This is calculated at a higher rate, as you are not making provision for a spouse’s pension in the case of your death.
• Joint-life annuity
This annuity is calculated at a lesser rate than the single-life annuity and is designed for you to receive an income and in the event of your death, your spouse or common-law partner will continue to receive the income. A guaranteed income is payable until the last person in the relationship dies.
• Living annuity
A living annuity provides you with investment choice as dictated by the underlying investment choices. You can select and change the investments in accordance with certain terms and requirements. Upon your death, the balance that remains in your annuity is paid to your beneficiaries and payments can be structured according to their circumstances.
The benefits payable are subject to taxation, the following table provides the prevailing rates as per current SARS tax brackets:
|Taxable amount (R)||Rate of tax|
|0 – 500 000||0%|
|500 001 – 700 000||18% of amount exceeding R500 000|
|700 001 – 1 050 000||R36 000 + 27% of amount exceeding R700 000|
|1 050 001 and above||R130 500 + 36% of amount exceeding R1 050 000|
Download the Benefit Claim Form here or contact the help desk for assistance.
Should you become disabled while still working and it is approved by the insurer, you will be eligible for a disability benefit. There is typically a three-month waiting period fr your claim to be assessed. This cover stays in place for two months after leaving service.
• You will receive a monthly income of 75% of your pensionable salary through to retirement age.
• You must continue to contribute to the Fund as normal and the insurer will become responsible for the employer’s contribution.
• Once you reach retirement age the normal payment package and options apply.
• If you are declared fit to return to work the income disability benefit will stop.
• If you die while receiving the monthly disability income, you will be covered for the death and funeral benefits as normal.
Download the Disability Benefit Claim Form here or contact the help desk for assistance.
If you pass away while in service a one-off benefit equivalent to four times your annual pensionable salary plus your Fund Credit becomes payable to your nominated beneficiary/s. This cover stays in place for six months after leaving service.
For example: If your annual pensionable salary is R150 000 and your Fund Credit is R200 000, then the one-off benefit will be:
4 x R150 000 = R600 000 PLUS the R200 000 Fund Credit, for a total payment of R800 000.
The death benefit is payable in terms of Section 37C of the Pension Funds Act to your nominated beneficiary/s. It is extremely important that you complete the beneficiary nomination form and update it regularly with your employer.
The beneficiary nomination form serves as a guideline when a decision is made by the Trustees on who the death benefits should be paid to. You will also be eligible for the funeral benefit, see below.
5. Funeral benefit
You and your immediate family members have the following funeral cover.
|Member||R 30 000|
|Spouse||R 30 000|
|Children aged 14 to 21 years||R 30 000|
|Children aged 6 years and over but under age 14||R 15 000|
|Children aged 1 year and over but under age 6||R 7 500|
|Children under age 1 year||R 7 500|
|Stillborn Children||R 7 500|
The funeral benefit will be paid within 48 hours after the Insurer has received the required claim form and supporting documents. If you leave the Fund, this cover continues for a period of six months after your last contribution.
Download the Death and Funeral Benefit Claim Form here or contact the help desk for assistance.
6. Family assistance benefit
There are a number of additional benefits that fall under this cover free of charge and at any time.
• Repatriation benefit: If you, your spouse or children die while you are in service the insurer can arrange for the transportation of the remains to the final resting place anywhere in South Africa or our neighbouring countries. A family member may accompany the remains.
• Funeral assistance: The insurer can recommend reputable funeral parlours and other related service providers to assist with arrangements.
• Legal assistance: The insurer can also provide legal advice on a wide range of matters such as obtaining the death certificate and cross-border transportation of the remains.
For a detailed list of the benefits click here: Sanlam Burial Repatriation.
Should you need to make use of this benefit, please contact Sanlam directly schemedeathclaims.EB@sanlam.co.za or the help desk 021 421 0190/1.
7. Housing loans
The Fund issues surety for home loans through Standard Bank. The loan, once approved, must be used for housing purposes such as the purchasing of property, improving or repairing/maintaining your existing property. Your employer has to enter into an agreement with the bank before you may apply.
The loan is subject to the bank’s approval under the National Credit Act. You can apply for a minimum amount of R3 000 up to a maximum of 60% of your Fund Credit if you are under the age of 50 or 30% of your Fund Credit if you are older.
The loan is repayable at the prime lending rate plus 0.75% over a maximum period of 10 years, depending on the years left until your retirement.
Follow these steps when applying for a home loan:
• Confirm whether your employer has an agreement with Standard Bank as they will be responsible for deducting the loan installment from your salary.
• Contact the help desk for your surety amount (maximum amount you can apply for). Complete the application form and submit the form and supporting documents to the help desk.
• The help desk is also available to assist with the completion of the document.
• The help desk will submit your application form to the bank.
• Standard Bank will contact you directly to advise whether your loan has been approved. If yes, the money will be paid directly to you.
The Standard Bank pension-backed housing loans office contact centre number is 0861 009429.
Download the Housing Loan application form here.
Additional information can be found in our Member Booklet