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Death Benefits 


Please click here to download the Group Risk Policy and click here to download endorsement 4 of the policy.

Please click here to download the separate Death Benefit Policy and click here to download endorsement 5 of the policy.
 

What gets paid by the UCTRF when I die?

If you die before retirement, a benefit equal to your Accumulated Retirement Savings in the UCTRF plus a lump sum death benefit of 6 times your Deemed Pensionable Amount (DPA) is payable.  However, if you are an eligible contract staff member whose contract started before 1 July 2017, you do not have the 6 X annual DPA cover mentioned above.

You may choose to reduce your death benefit by 1, 2, 3, 4, 5 or 6 times your annual DPA, but your total death benefit (Accumulated Retirement Savings plus Death cover) may not be less than 4 X your annual DPA.

If you elect to reduce your death cover in this way, your Accumulated Retirement Savings account will be credited with the savings in the risk premium.

 
Please note: Members over the proof free limit have to submit medical information prior to being accepted for full cover. 
 


Click here to read more on when you can change your death benefits


It is also important to note that, in accordance with Section 37D of the Pension Funds Act certain amounts may be deducted from your Accumulated Retirement Savings before your death benefit is paid from the UCTRF.

These include:

•  Tax on the benefit

•  Outstanding housing loans where the member’s Accumulated Retirement Savings were used as surety

•  Arrear maintenance payments awarded via a court order

•  Amounts awarded to an ex-spouse via a Divorce Order which have not previously been paid to your ex-spouse

•  Losses suffered by the employer as a result of fraud and theft by the employee, and in respect of which the member admitted liability in writing, or a judgement has been obtained against him/her

 

How will my UCTRF death benefit be distributed?


1. The Pension Funds Act defines dependants and gives the Board the responsibility of deciding what goes to each dependant. This is one of the most difficult decisions the Board has to make. The Board is guided by:

  • the fact that the funds available are by law intended to provide pensions (and are not part of the member’s estate);
  • your wishes.

2. The Board needs as much information as you can give us about your dependants. The Pension Funds Act defines dependants as:

                a)    a person in respect of whom the member is legally liable for maintenance;

                b)    a person in respect of whom the member is not legally liable for maintenance, if such person -

                       i)    was, in the opinion of the board, upon the death of the member in fact dependent on the member for maintenance;

                      ii)    the spouse of the member;

                      iii)   is a child of the member, including a posthumous child, an adopted child and an illegitimate child;

                c)    a person to or for whom the member would have become legally liable to pay maintenance, had the member not died.

 
3. The Board is obliged to consider all dependants as defined by law (but not necessarily make allocations to them). The Board must pay benefits in the proportion it judges to be fair, and needs as much information as    possible to do this.

4. Only if a member leaves no dependants or no dependant (as defined by law) who, in the opinion of the Board, was factually dependent, may the Board consider a person who is not dependent (as defined by law).

5. Although the Board makes the final decision as to how the benefits will be distributed, your recommendation will be an important guide. You can update your beneficiaries on line https://uctrf.co.za/124/P/How-to-update-your-Beneficiaries or you can complete Form HR151 Nomination of Beneficiary Form.  If you would like to motivate your recommendations, include this with your nomination. Please draft your motivation on the assumption that it will be acted on in the next twelve months. You can update this at any time.

6. You make your recommendation:

                a)    subject to the condition that you may at any time withdraw or amend it; and

                b)    conditional upon the fact that, should any person recommended by you pre-decease you, the recommendation of that person lapses and the estate or heirs of that person have no claim against the UCTRF                             for any benefits in terms of this recommendation.

7. The benefit payable by the UCTRF on a member’s death does not form part of your estate. You therefore may not allocate it in your will.

8. The Pension Funds Act assumes that the Board will take up to twelve months before making decisions. This allows the Board time to trace dependants. The Board will, however, try to make such decisions sooner if they have all the relevant information.

Click here for more information on the death benefit process

What is the Separate Group Life Death Benefit?

In addition, there is a further one times annual Deemed Pensionable Amount that will be paid from a separate Group Life Assurance scheme, provided that the member has not already received a disability lump sum benefit from this arrangement. However, eligible contract staff members whose contract started before 1 July 2017 have cover of three times their annual Deemed Pensionable Amount under this scheme.  This benefit is not taxed (because you pay tax on the premiums).

You can choose to pay an additional amount to increase your cover to up to 5 times your DPA. The premium for this additional cover will be deducted from your salary in addition to the contribution that you are already making. You can change your additional cover on 1 June annually. You will be provided with information regarding how to make this change when you receive your annual benefit statement.

Click here to read more on when you can change your death benefits

How will my Separate Group Life Death Benefit be distributed?

This benefit will be distributed to whoever you have nominated.  You can update your beneficiaries on line https://uctrf.co.za/124/P/How-to-update-your-Beneficiaries or you can complete Form HR155 Nomination of Beneficiary Form.

What if I die after retirement?

There is no death benefit after retirement, so only your Accumulated Retirement Savings will be paid.