General

Costs

Monthly contributions to the fund include the following costs:

Administration costs:

  • Member fee of R12,00 (incl VAT) per member per month; and
  • Consultation fee of 5.7% (incl VAT) of contribution per member per month

Group scheme costs:

  • Death benefit: R1,21 per R1 000 cover
  • Funeral benefit: R2,09 per R1 000 cover
  • Disability benefit: R0,35 per R1 000 cover
  • Acidental / bodily loss: R0,29 per R1 000 cover
  • Paid up funeral policy: R3,50 per R1 000 cover

Monthly contributions to the fund for employees with minium earnings of R10 000 include the following costs:

Administration costs:

  • Member fee of R12,00 (incl VAT) per member per month; and
  • Consultation fee of 5.7% (incl VAT) of contribution per member per month

Group scheme costs:

  • Death benefit: R0,55 per R1 000 cover
  • Funeral benefit: R1,23 per R1 000 cover
  • Disability benefit: R0,28 per R1 000 cover
  • Acidental / bodily loss: R0,13 per R1 000 cover

The financial adviser will be able to provide you with a breakdown of these costs when you join the Fund. The administration costs as well as the costs attached to the group schemes are reviewed annually.

If a financial adviser offers you the fund, the fund makes provision for the payment of a new fund brokerage fee to the adviser. This fee equals the first month’s net contributions in respect of Plan A1 and twice the first month's net contributions in respect of the other plans and is paid in a single amount in the third month of membership.

Group schemes

Death and funeral benefits

These benefits are provided up to the age of 70. In general, these benefits are provided without any medical proof of health, but the Board of Management retains the right to request the principal member to submit proof of good health on entry to the Fund.

Capital disability benefit

This benefit is provided up to the age of 65 and is subject to a waiting period of 6 months. If the onset of disability occurs within 5 years prior to the member’s attainment of age 65, the amount payable will be reduced by 20 per cent of the disability benefit offered by the chosen plan, for each year or part thereof by which the onset of such disability precedes the member’s 65th birthday.

Please note that pre-existing conditions apply. This means that a member cannot claim for a medical condition that existed 6 months prior to his commencement date in the fund within a 12 month period after this commencement date.

Contributions

Contributions are paid monthly in advance through a debit order. This process eases administration and limits administrative costs to a minimum. No provision is made for alternative payment methods. Premiums for the death, disability and funeral benefits, as well as for administration, are deducted from the monthly contribution and the balance (net contribution) is invested to provide for a single cash amount to be paid on retirement, resignation or death.

It is extremely important to note that contributions have to be paid on a regular monthly basis. If your bank refuses payment, irrespective of the reason, the members’ group scheme benefits will be suspended, and no claims will be accepted. If the deduction is refused for a second consecutive month, the membership to the fund of all members involved will be suspended until the employer rectifies the situation. However, the death, disability and funeral benefits cannot be paid or reinstated retrospectively.

It is the employer’s responsibility to inform members immediately when payments to the fund are refused by the bank, as the members will not enjoy cover as provided under the separate group schemes until the relevant payments are honoured.

The Board of Management will re-evaluate and adjust the contribution plans annually. Members’ contributions will automatically be adjusted annually.

Procedure to become a member and enquiries

To join the fund you need to complete and submit the application form to the fund.

Please e-mail the form to us at agrisectorfund@absa.co.za or fax the form to us at: 086 528 6119.

However, if you prefer to work through your existing financial adviser, he or she is very welcome to contact us for any information needed. Financial advisers are also available in some areas if you would like someone to visit you.

Consultants and Actuaries, Agricultural Sector Provident Fund, PO Box 4167, Fourways, 2055.

Enquiries may be directed through the following channels: Administrative enquiries: Salomie Hall Tel: 011 846 3717 Fax: 086 528 6119 Portfolio Supervisor.

The consultant for the fund is: Rene Cockrell Tel: 011 225 8340 Fax: 086 528 6119. You can also e-mail the fund at workersfunds@absa.co.za. If you prefer to work through your existing financial adviser, he or she is very welcome to contact us for any information needed. Financial advisers are also available in some areas if you would like someone to visit you.

Communication

On receipt of the application form, completion of the entry administration and the successful payment of the first contributions, the employer will receive a membership certificate for every member of the fund. These membership certificates are, however, only valid if contributions are fully maintained on a monthly basis.

You will also receive a document detailing the administrative processes and requirements of the fund. Benefit statements will be issued annually to all employers. These statements will indicate to each member the value of his or her savings component as well as the benefits provided under the separate group schemes that the member is entitled to in terms of the plan selected.

Increases

The Board of Management of the Fund will re-evaluate and adjust the contribution plans annually. Members’ contributions will automatically be adjusted annually. The Board of Management undertake to keep participating employers and members up to date with developments and changes concerning the fund.

Indexes

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