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Disability Benefits 

For a full explanation of how your disability benefits have changed with effect from 1 March 2015, please click here.

Please click here to download the Income Continuation Policy
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The Pension Funds Act precludes the UCTRF from providing a disability income benefit.

The benefits payable on your disablement are therefore provided for by separate insurance policies that fall outside the ambit of the UCTRF. The Trustees of the UCTRF, however, govern this separate arrangement, as it is associated to the UCTRF.

When will I receive a disability benefit?

Disabled refers to not being able to continue with your everyday job as a UCT employee due to injury or illness.  This can be temporary (where you cannot work for a few months), or permanent, (where your chances of a quick recovery are slim).

If disabled, what benefit do I receive?
 
The disability income benefit is only paid once you have been disabled for a period of 6 continuous months. You will need to rely on your sick leave to "bridge" this 6-month period to the greatest extent possible unless the insurer waives this waiting period based on the severity of disablement.

If, after the expiry of this 6-month period, the Insurer considers that you are still unable to perform your work with UCT in your current occupation, you will be entitled to a monthly income of 70% of your deemed pensionable amount (DPA).

After a further 12 months (i.e. 18-months after you became disabled), the Insurer will re-assess your disability, but this time against the criteria of whether you are able to perform your job, or any similar job that you could do by virtue of your experience, training, education and age, with any Employer.

Please note: Due to changes in the legislation governing the taxation of these benefits, with effect from 1 March 2015, the benefit had to be restructured. These benefits are no longer taxable as income in the hands of  members in receipt of income continuation benefits. To adapt for this change, the benefit calculation was adjusted by introducing a “tapered” benefit based on the DPA ranges.

The monthly income continuation benefit is calculated as:

  • 70% of the first R 15 000 per month of DPA,
  • plus 60% of the next R 20 000 per month of DPA,
  • plus 45% of any DPA in excess of R 35 000 per month,
  • plus the contribution to the UCTRF.


Under what circumstances does this benefit cease?

If, at any time after the benefit has commenced, the Insurer considers you fit to return to work (against the definition of "own occupation" for months 6 to 18 and thereafter "own or similar occupation"), the benefit will cease and you must return to work.

The benefit will also cease if you were to die or once you reach age 65 (or age 60 if you were on this income continuation scheme before 2007) at which time you would receive your retirement benefits. Even, if in terms of your employment contract you can retire beyond age 65, the benefit still ceases at the end of the month you turn 65 and you must retire then.

Does the benefit increase each year?

Each year, on 1 January, your disability income benefit will be increased by 5% (if inflation is lower than 5% your increase will be limited to inflation.)


What happens to my UCTRF membership during the period I receive a disability income benefit?


What lump sum disability benefit is payable?

In addition to the disability income benefit, a lump sum disability benefit may be paid once you have been disabled for a period of 6 continuous months.

You will qualify for the lump sum disability benefit if, after the expiry of this 6-month period, the Insurer considers that you are totally and permanently unable to perform your job, or any similar job that you could do by virtue of your experience, training, education and age, with any Employer.

The benefit is once your annual deemed pensionable amount. If you receive such a benefit and subsequently die (whilst in receipt of a disability income benefit), no further benefit is payable from the separate death and disability scheme.