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Death

Death gratuity is paid out when a member dies before reaching normal retirement date and whilst still in service. It is a lump sum equal to twice the member’s annual pensionable salary.
Prior to the enactment of the Retirement Funds Act of 2005, a deceased member’s benefit was transmitted to the office of the Master of the High Court in terms of the Pensions Order 1993 for distribution and therefore formed part of the assets of the estate. The Retirement Funds Act (2005) specifically excludes the benefit from forming part of the assets of the estate, which in essence means that the distribution of the gratuity is now placed solely in the hands of the Fund and is payable to the deceased’s dependants.


 Monthly Pension / Annuity


If a member leaves behind a spouse the spouse will receive a monthly pension until death or until the spouce remarries, whichever occurs first, equal to 50% of the pension you would have received, had you not died but retired normally, as per paragraph 2.3.
If, apart from a spouse, a member also leavse behind one or more dependant child(ren), a monthly pension equal to 10% of the pension will be paid to each child.
Should a member leave behind more than one spouse, the pension payable in terms the above, will be divided equally among the spouses.
The pension paid to the member’s child will be double the amount referred to above if there is no spouse or the spouse dies later.
Should a member leave behind more than five dependant children, the total pension payable will be calculated as if there were five dependant children and such total will be divided among the children.


 Example:


Themba, a married member, dies at age 50 years, before his normal retirement and having worked for 20 years. His pensionable salary at time of death is E96 000 per annum. He leaves behind his wife and two dependent children. The following benefits are then payable:-
i) Lump sum: 2x E96 000 = E192 000
ii) Spouse’s pension: (2% x E96 000 x 20) x 50% = E19 200 per annum = E1 600 per month.
iii) Children’s pension per child:- (2% x E96 000 x 20) x 10% = E3 840 per annum = E320 per month. If he had more than 5 children , say 8, their pension is calculated thus, 2% x E96 000 x 20 x 50% = E19 200 E19 200/8 = E2 400 per annum = E300 per month (per child).

 

Which benefits are payable if a member dies after having retired on pension?


The pension a member received at the time of their death will cease. If a member leaves behind a spouse, the spouse will receive a monthly pension equal to 50% of the monthly pension  received at the time of the member’s death, until the spouse death or until the spouse remarries, whichever occurs first.
If a member, apart from spouse, also leave behind one or more dependent child(ren), a monthly pension equal to 10% of the monthly pension that a member received at the time of their death will be paid to each child from the date of the member’s death.
Should a member leave behind more than one spouse, the pension payable will be divided among them in such proportion as determined by the Fund.
The pension that will be paid to the member’s child or children, will be double the amount stated above if the member’s spouse dies later.
Should a member leave behind more than five dependant children the total pension paid out will be calculated as if there were five dependant children and such pension will be divided among all the dependent children. A dependant child is an existing child or a child that is unborn at the time of death of member who:


a) Is unmarried and under the age of 21 year; or
b) Is unmarried, under the age of 25 years, and a full-time student at a public educational institution, including an illegitimate child and a stepchild if legally adopted.