Benefit Structures

To make provision for different needs, different benefit plans are offered. This can be extended at a later stage dependent on the need and the effects of inflation. The benefit structure is set out in the table below.

Agricultural Sector Provident Fund
Plan
A1
A2
B
C2
D
E
Contribution
R130.00
R130.00
R150.00
R170.00
R200.00
R340.00
Death cover
-
R12 500
R15 000
R17 500
R20 000
R30 000
Capital Disability
-
-
-
-
R20 000
R30 000
Accidental death/Bodily loss
-
 R12 500  R15 000  R17 500   R20 000 R30 000 
F
U
N
E
R
A
L
Member
-
R10 000
R12 500
R15 000
R17 500
R25 000
Spouse
-
R10 000
R12 500
R15 000
R17 500
R25 000
Child 14-21 years
-
R10 000
R12 500
R15 000
R17 500
R25 000
Child 6-13 years
-
R5 000
R6 250
R7 500
R8 750
R12 500
Child 0-5 years
-
R2 500
R3 125
R3 750
R4 375
R6 250
Total costs
R19.41
R59.07
R69.18
R79.30
R96.98
R139.13

Net retirement savings (contribution less total cost)

R110.59
R70.93
R80.82
R90.70
R103.02
R200.87

 

Salary driven plans

Agricultural Sector Provident Fund
Plan
SAL 1
SAL 2
SAL 3
SAL 4
Contribution
R500.00
R750.00
R1 000.00
R2 500.00
Death cover
R100 000
R150 000
R200 000
R500 000
Capital Disability
R100 000
R150 000
R200 000
R500 000
Accidental death/Bodily loss
R50 000
 R75 000  R100 000  R250 000
F
U
N
E
R
A
L
Member
R35 000
R35 000
R35 000
R35 000
Spouse
R35 000
R35 000
R35 000
R35 000
Child 14-21 years
R35 000
R35 000
R35 000
R35 000
Child 6-13 years
R17 500
R17 500
R17 500
R17 500
Child 0-5 years
R8 750
R8 750
R8 750
R8 750
Total costs
R173.05
R232.05
R291.05
R645.05

Net retirement savings (contribution less total cost)

R326.95
R517.95
R708.95
R1854.95

 

Contribution plans

  • The selected plans can differ from one employee to the next. The plans can also be reviewed and adjusted continuously. The amendment will only be activated after the administrative office has been informed of this in writing before the 20th of every month.
  • The employer and employee can decide for themselves which plan suits each individual employee. As a result some of the employees may choose plans with basic benefits while other employees may choose plans with more comprehensive benefits, after which it will be implemented accordingly.
  • It is not necessary for an employer to include all his employees on the same plan.
  • Members are also allowed to make additional contributions to the fund for purposes of additional retirement funding.

Death benefit

In the event of death before retirement, the member’s death and funeral benefits will be paid to the member’s dependants in accordance with the chosen plan. The total value of the member’s savings component at date of death will also be paid to the member’s dependants in a single cash payment (subject to tax).

Retirement benefit

At retirement the member’s death, disability and funeral benefits will cease. The member will be entitled to the total value of his or her savings component as at the date of retirement. This value will be paid in a single cash payment (subject to tax). The member can retire at any stage between the ages of 55 and 70.

Withdrawal benefit

If the member leaves the service of the employer before retirement, the member’s death, disability and funeral benefits will cease. The member will be entitled to the total value of his or her savings component as on the last day of service. This value will be paid in a single cash payment (subject to tax). The member is also offered the option of transferring the total value of his or her savings component to a new participating employer or transferring the total value to a preservation fund.

Disability benefit

If the member becomes totally and permanently disabled (as determined by the insurer based on detailed medical evidence submitted and the benefit is approved) before the age of 65, the member will be entitled to the capital disability benefit in accordance with the chosen plan, after a waiting period of 6 months. The member’s death and funeral benefits will cease. The total value of the member’s savings component at date of exit from the fund, will also be paid to the member in a single cash payment (subject to tax).

Indexes

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