What benefit your dependants will receive (from the Retirement Fund) should you die in service

Death is generally not something we like to think about, but it is important that you plan for it, especially if you have family who depend on you. 

The benefit your dependants will receive 

If you die in service on or before you reach age 65, your dependants will receive a cash benefit equal to:

  • Your Member Individual Account; plus 
  • An additional amount payable by the separate Group Life Assurance Scheme. For details on this, refer to the section Death-in-service benefits 

Special note on death benefits payable from the PetroSA Retirement Fund.

The Trustees will have complete discretion as to how the benefit payable by the PetroSA Retirement Fund (i.e. your Member Individual Account) will be allocated to your dependents. This Trustee power is derived from Section 37C of the Pension Funds Act, which requires the Trustees to allocate any retirement Fund benefit to those persons that were most financially dependent on you (usually your spouse and children). 

However, in the event of there being no spouse or financially dependent children, your benefits will be paid to your financially independent children, or your nominated beneficiaries. A nomination in your will is not sufficient to indicate how you wish your retirement savings to be allocated in event of your death. It is therefore most important that you complete a beneficiary nomination form to ensure that anyone whom you wish to benefit will have the opportunity of doing so. Forms are available from the PetroSA Human Capital Department. 

The trustees will only be able to pay benefits of deceased members to a trust where the trust concerned was nominated by the member or a major beneficiary.

Otherwise benefits may be paid to a beneficiary fund for beneficiaries who are minors.

A beneficiary fund is a pension fund organisation, which has the sole purpose to receive, administer invest and pay death benefits as contemplated in Section 37C of the Pension Funds Act. Beneficiary funds must register in terms of the act.

If a beneficiary that receives a benefit from a beneficiary fund dies, any remaining assets must be paid into the beneficiary's estate or, if there is no estate, into the Guardian's Fund

The tax treatment of this benefit is covered under “Taxation of Benefits”.