ABSA CONSULTANTS AND ACTUARIES EMPLOYEE BENEFIT SOLUTIONS ABSA SMALL ENTERPRISE PROVIDENT FUND

Transcription

1 ABSA CONSULTANTS AND ACTUAIES EMPLOYEE BENEFIT SOLUTIONS ABSA SMALL ENTEPISE POVIDENT FUND UNIQUE POVIDENT FUNDS FO SMALL, MICO AND MEDIUM BUSINESSES ADMINISTEED BY ABSA CONSULTANTS AND ACTUAIES EMPLOYES' AND EMPLOYEES' GUIDE The unique employee benefits solution that offers employers and employees retirement, withdrawal, death, disability and family funeral benefits in one package 1

2 Participation in the ABSA Small Enterprise Provident Fund - your competitive advantage Absa Consultants & Actuaries take pride in introducing their individualized and solution driven employee benefits solution, ABSA Small Enterprise Provident Fund. The ABSA Small Enterprise Provident Fund was developed by Absa Consultants & Actuaries, an acknowledged market leader in the field of employee benefits. We are a part of the Absa Group, with access to the considerable resources of this leading financial services group, yet at the same time independent and not too big, allowing us to focus on the employer and his unique requirements. The ABSA Small Enterprise Provident Funds is cost-effective, and moreover, result in a strategic benefit for your business. By registering your employees with either of The ABSA Small Enterprise Provident Fund you will provide them with retirement and withdrawal benefits, and provide support to employees and their families in the event of death and disability, as well as providing funeral benefits. The ABSA Small Enterprise Provident Fund The ABSA Small Enterprise Provident Fund is designed specifically with the small, micro and medium business in mind, and there is no minimum number of employees you need to have in your employ before you can participate in the fund. The ABSA Small Enterprise Provident Fund is a Provident Fund, and is registered with the Financial Services Board (12/8/34855/1), and approved by the Commissioner for SAS (18/20/4/39342). The PAYE number of the fund is The fund is structured as a provident fund, offering lump sum retirement and withdrawal benefits, with associated separate group schemes offering group life, group capital disability and family funeral benefits. By offering employee benefits through the ABSA Small Enterprise Provident Fund, you will have the competitive edge and reap the benefits of stable and more productive employees, which in turn will lead to higher productivity and a lower personnel turnover. By registering your employees as members of either of these funds, your social responsibilities towards them at retirement, in the case of disablement or unforeseen death and the resulting funeral costs and financial assistance towards dependents afterwards, decrease significantly. And to top it all, the eceiver of evenue allows you to deduct your fund contributions. Isn't it time you took a closer look at what ABSA Small Enterprise Provident Fund can do for you? Plans that put you in control The ABSA Small Enterprise Provident Fund offers you a choice of ten plans as illustrated in the enclosed table, all of which have their own benefit structure. You can choose the most suitable plan for each employee according to his or her needs and salary. Plan INV is a basic savings plan with retirement benefits only, thus an investment plan for retirement. Plans B - J offer retirement, death, disability and funeral benefits. Please note that Plan B will be discontinued on 1 August Junior or lower paid employees can therefore be placed on plans providing basic benefits and senior or higher paid employees on plans providing more comprehensive benefits. The flexible structure of The ABSA Small Enterprise Provident Funds allows you to contribute more than the specified contribution for each plan if you wish to do so. This option is especially recommended for older employees for whom no provision for retirement funding has been made. The additional contribution will be allocated to the member's investment account to create additional retirement funding. 2

3 All permanent employees between the ages of 15 and 65 may join the fund. You do not have to put all your employees on the same plan - you choose whichever plan suits you and your employees' individual needs best. When you as a participating employer join The ABSA Small Enterprise Provident Funds, your current employees have the option to join the fund within the first six months. All new permanent employees employed by you on or after the date on which you have become a participating employer in the fund will be compelled to join the fund in terms of the Income Tax Act and as determined in your employment contracts. A unique feature of The ABSA Small Enterprise Provident Funds is the option that employers can amend their choice of option on an annual basis provided that the increased risk benefits will be subject to accidental cover only for the first three months from the change in cover. This enables you to accommodate changing circumstances of employees. You may however increase your contribution within the same plan at any time. Furthermore, benefits should not be eroded by inflation as The ABSA Small Enterprise Provident Fund makes provision for annual inflation related contribution- and benefit increases. The Trustees determine these increases which come into effect on 1 August annually. How the contributions are invested The costs of providing the death, disability and funeral benefits and a trustee approved administration fee are deducted from the monthly contribution. To provide for retirement funding, the balance of the contribution is invested by the Trustees with independent investment managers. Their mandate is clear - optimise investment returns for fund members, bearing in mind the risk profile of the average member. For this reason the Trustees follow a generally conservative investment strategy. Costs The monthly contribution to the fund is an all inclusive cost, and the following deductions are made from the monthly contribution before investment: isk Costs - The cost of providing the death and disability and family funeral costs. Administration Costs - The cost of administration, actuarial services, consulting and advisory services. These costs must be declared to you by your adviser, or the person introducing the fund to you. The fund will annually advise you of the costs in writing. We realise that cost is always a factor and keeping it as low as possible is important to you and the members of the fund. The Funds are obliged to recover contributions by debit order due to the cost savings involved. This working method allows the Funds to service its members on a sound financial and administrative basis. Any other means of collecting contributions results in a direct cost component, which will increase the administration fees. For this reason, this is the only method of payment provided for. Absa Consultants & Actuaries furthermore do regular market research on the death, disability and funeral benefits, to offer you the most competitive rates and best policy conditions applicable and suited to the fund and its membership profile in the market. This way we ensure costs are kept manageable, thus maximizing the portion of the monthly contributions invested for retirement funding. Because we take care of administration only, we are totally independent and are therefore in a position to design the best possible product for your business. This ensures that an optimal portion of your contributions is invested for the benefit of your employees at retirement. There is no other similar product that has this unique feature. 3

4 Communication A participating employer will be issued with a certificate of participation upon joining the fund. Each member will be issued with a membership certificate once the first contributions have been received. Every member will receive an annual benefit statement, which will reflect the member s equitable share in the fund, as well as the cover for death, disability and family funeral benefits under the associated separate group schemes. The benefit statements will be forwarded to the participating employer via his or her financial adviser where applicable for distribution amongst employees. A circular covering aspects of importance will also be sent to participating employers on an annual basis together with the annual benefit statements. Accessibility of benefits Both of the funds are registered funds, and in accordance with the provisions of the Pension Fund s Act and the rules of the fund, members are only allowed to gain access to their equitable share in the fund in the event of the following: etirement at age 65 (or early retirement from age 55) Death of the principal member of the fund (prior to retirement) esignation of the employee from the employ of the employer (prior to retirement) etrenchment or dismissal of the employee by the employer (prior to retirement) Transfer to another approved fund (prior to retirement) etirement Benefit At retirement at any age between 55 and 70, the member will receive the equitable share (net contributions plus interest) in the fund as a lump sum or, if preferred, a portion or the full value paid by means of a monthly pension. The member's risk benefits, i.e. death, disability and funeral cover, will cease. esignation Benefit Upon termination of service with an employer, the member's risk benefits, i.e. death, disability and funeral cover, will cease. The member is entitled to the equitable share in the fund (net contributions plus interest) and this benefit can be taken in cash or it can be transferred to a Preservation Fund or a etirement Annuity. Alternatively the equitable share can be transferred to another fund offered by the new employer (should the member die before retirement, the benefits will be payable to his or her dependents). The resignation benefit is taxable in terms of the Income Tax Act. Death Benefits In the event of death before retirement, the member's dependents and/or beneficiaries will receive benefits from the fund and the group schemes according to the rules. Provident Fund From the Provident fund the dependants of the deceased will receive a cash benefit. This cash benefit will consist of the equitable share in the fund (net contributions plus interest) and this will be payable to the dependants of the member as prescribed in Section 37C of the Pension Funds Act. Section 37C requires of the fund, through the employer, to trace all dependants, and to evaluate their degree of dependency on the member before any benefit may be paid. This is a timeous process. 4

5 Group Scheme In the event of death of the principal member before retirement, the member's dependents and/or beneficiaries will receive a cash benefit from the group scheme. This benefit is paid in cash as directed by the employer, and is paid after receipt of all the required claim documentation by the administrators of the fund. The cash benefit will consist of the death cover offered by the chosen plan as well as the family funeral benefit. Death cover is provided without any medical examinations until age 65. Any person who joins the fund on a plan providing death cover of 7 or higher may be required to provide medical evidence of health prior to cover being granted by the insurer. Should this be required, such person will be informed in writing by the administrators, and provided a reasonable time in which to submit such required evidence of health. In the event of the death of a member's spouse or child (under the age of 21), a funeral benefit will be payable to the member according to the applicable option. Waiting period applicable to death benefits under the Separate Group Schemes All new members joining The ABSA Small Enterprise Provident Fund will be covered for death and family funeral benefits, but only after three months continuous membership if the cause of death was natural. In the event of accidental death, the benefit is payable immediately. This waiting period is designed to protect the members of the fund by managing the payment of the benefit. Should a death claim thus arise due to natural causes within the first three months of membership, the death and family funeral benefit will not be payable. Total and Permanent Disability Benefits Should an employee become totally and permanently disabled (as determined by the insurer based on detailed medical evidence submitted) before the age of 60, he or she will receive benefits from the fund and the group schemes according to the rules. Provident Fund From the Provident fund the member will receive a cash benefit. This cash benefit will consist of the equitable share in the fund (net contributions plus interest) and this will be payable to the dependants of the member as prescribed in Section 37C of the Pension Funds Act. Total and permanent disability in the Separate Group Scheme All new members joining The ABSA Small Enterprise Provident Fund will be covered for disability benefits only after a period of six months if the natural causes are not pre-existing medical conditions. In the case of a benefit due to bodily injury caused by accidental, violent, external and visible means this period is three months. The benefit is only due after six months of continuous membership, and a waiting period of six months after date of disability has expired. The member will receive a cash benefit equal to the total of the disability cover offered by the chosen plan on approval of the claim by the insurer. 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 percent 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 65 th birthday. This waiting period is designed to protect the members of the fund by managing the payment of these benefits. Therefore, should a disability claim arise due to natural causes illness is a natural cause within the first six months of membership, the benefit will not be payable. 5

6 Important Notices Participation in an approved fund Once you have become a participating employer in the fund, you are not permitted by law to withdraw from the fund. You are however permitted to transfer membership to another approved fund, or in certain circumstances have your participation in the fund liquidated. Your consultant can provide you with more information should this be required. Payment of contributions The payment of contributions to a fund is prescribed by law. The onus is on the employer to ensure that monthly contributions are paid via the debit order system, and that funds are available for the successful allocation of contributions. Contributions must be received by the fund on or before the 7 th of a month, and if the 7 th is on a Saturday, Sunday or Public Holiday, then on the last working weekday before such a day. Should your payment via the ACB debit order system be rejected for whatever reason, you as employer will be liable for the payment of interest at a rate determined by the Minister of Finance from time to time. The fund will correspond directly with you should this be necessary. isk Cover Should a monthly contribution not be received in any one month, the risk cover will terminate if the overdue contribution is not paid through a double debit in the following month. If the double debit is rejected, those members will then not be covered for death, disability or family funeral benefits as from the first day of the first month for which no contributions were received. Absa Consultants & Actuaries will issue an off-risk letter to the employer confirming the cessation of risk. If arrear contributions are received subsequently, members will be subject to the waiting periods described above from the date the contribution is re-instated. Contributions and risk benefits cannot be re-instated retrospectively. War and iot Exclusions There are war and riot exclusions and terms and conditions may vary from time to time. Please contact your financial adviser or the fund administrator for details in this regard. Benefits for you, the employer etain your valuable employee Employee benefits minimize the risk of losing valuable employees. You can be assured of retaining your current staff and being able to offer an attractive, competitive package to all new employees. Tax The employer's contribution to the fund is tax deductible to a maximum of 20% of the total salary roll. As both funds are structured as provident funds the employee derives no tax benefit from contributions in terms of the Income Tax Act. 6

7 Peace of mind The responsibilities of the employer at the retirement and unforeseen death or disablement of his employees are reduced due to provisions in a tailor-made specialist fund. Transferable benefits The accumulated benefits of members are transferable to another approved fund without tax implications. Ease of payment Contributions are levied monthly in advance, and to make life easier for you, these are done by debit order. The single contribution covers all the benefits of the fund, including those offered through the separate group schemes. Administration The administration of the fund and the associated separate group schemes is executed in the Pretoria office of Absa Consultants and Actuaries as contracted by the Trustees of the fund. ABSA Consultants and Actuaries handle the day-to-day member administration, which includes the loading of new members, processing of withdrawals and the payment of benefits. It happens from time to time that employers or intermediaries contact the Fund telephonically with the request to amend member records or to withdraw or add members. Take note that the Fund can only respond to requests in writing. This is done to protect the members, employer and the Fund against any claims due to incorrect transactions. If you want to communicate with the Fund by fax or , it is advisable to keep your fax records for future reference. Should you wish to communicate with the fund, you can address your enquiries as follows: By to the egional Manager at workersfunds@absa.co.za. By fax to the egional Manager, ABSA Small Enterprise Provident Fund, (012) or (012) In writing and by post to the egional Manager, ABSA Small Enterprise Provident Fund, Private Bag X43, Hatfield, 0028 Please again note: that you should at all times provide your participating employer reference number (Btp Number) and the relevant member s numbers where applicable. The registered address of the Fund to which correspondence should be sent, is ABSA Small Enterprise Provident Fund, Private Bag X43, Hatfield, The rules of the fund, as well as the financial statements of the fund, are available for inspection at the offices of ABSA Consultants and Actuaries, Hatfield Gardens Block A, Arcadia Street, Hatfield, Pretoria. 7

8 How to apply for membership Applying for fund membership is very easy. All you have to do is complete and sign the application form and return it to The egional Manager, ABSA Small Enterprise Provident Fund, Absa Consultants & Actuaries, Private Bag X43, Hatfield, Once the fund has received your application, and your participation has been approved, you will receive an administration manual as well as individual membership certificates for all yor enrolled employees. Take action NOW Don't delay. The ABSA Small Enterprise Provident Fund team is your partner in providing affordable and effective retirement, death, disability and family funeral benefits for your employees. For further information on The ABSA Small Enterprise Provident Fund or to make an appointment for advice on the right solution for your employee benefits needs, call the fund managers today on (012) , or enquire via at You may also call your local ABSA Broker, or any of the ABSA Consultants & Actuaries offices - (011) (Johannesburg), (012) (Pretoria), (021) (Cape Town), (051) (Bloemfontein) or (031) (Durban). 8

9 Table Addendum Contributions and Benefit levels applicable from 1 December 2007: Plan Inv B C D E F G H I J Contribution Escalation Compulsory on base contribution as per trustee decision annually on 1 August. Next Increase 1 August 2008 Death Cover Capital Disability Cover Funeral: Member Spouse Child Children Note: The minimum contribution will be fixed at per month as from 1 August Plans B and C will be consolidated into Plan C with a minimum contribution of

10 ABSA Small Enterprise Provident Fund/ABSA Kleinsake Voorsorgfonds Application/Aansoekvorm Details of employer/besonderhede van werkgewer Name of business Naam van Besigheid Contact person Kontakpersoon esidential address Fisiese adres Postal address Posadres Code Kode Code Kode Tel No (code) Tel Nr (kode) ( ) Fax No (code) Faks Nr. (kode) ( ) Province Provinsie Banking details/bankbesonderhede Bank / Bank Town/ Dorp Account number ekeningnommer Name of account holder Naam van rekeninghouer Branch / Tak Branch code / Takkode Type of account Tipe rekening Date of commencement of membership Datum waarop lidmaatskap 'n aanvang moet neem / / Total number of employees Totale aantak werknemers Total monthly contribution Totale maandelikse bydrae I wish to join the ABSA Small Enterprise Provident Fund Ek versoek om by die ABSA Small Enterprise Provident Fund I herewith testify that, to my knowledge, the information above is correct and that I will inform the fund of any possible changes or amendments PS: It is important for this information to be absolutely correct as claims will not be acknowledged where the claimant's information does not correspond with this information. Ek verklaar hiermee dat die inligting hierbo na die beste van my wete korrek is en dat ek die fonds in kennis sal stel van enige moontlike veranderings of wysigings. Let Wel: Dit is belangrik dat hierdie inligting absoluut korrek moet wees, aangesien eise nie erken sal word waar die eiser se inligting nie met hierdie inligting ooreenstem nie. Signed on the Geteken op die day of dag van year jaar Signature of employer Handtekening van werkgewer Compiled and distributed by Absa Consultants & Actuaries, Private Bag X43, Hatfield, Tel No. (012) Fax No. (012) / workersfunds@absa.co.za Opgestel en versprei deur Absa Konsultante en Aktuarisse, Privaat sak X43, Hatfield, Tel Nr. (012) Faks Nr. (012) /3597. E-pos : workersfunds@absa.co.za 10

11 I, the undersigned, herewith authorise ABSA Small Enterprise ovident Fund Pr to debit the monthl y contribution against my accou nt according to the debit order system operated in co-operation with my bank/building society, and to my debit account accordingly with such amounts, as if every transaction has been undersig ned by myself. This authorisation is valid for all amounts due in terms of the agreement. I undertake to inform the fund of any change in my bank/building lars as set society out above. particui herewith declare that: All employees for whom membership has been e, applied to the ar best of my knowledge, in good health, No employees for whom membership has been applied r from suffe any physical disability or terminal illness. All employees for whom membership has been applied are actively in service today. I am aware that costs in respect of death, disability,, administration funeral and commission, where applicable, are rom deducted the monthly f contributions. I herewith formally apply to be stered regi as a participating employer. Hiermee magtig ek, die ondergetekende, die ABSA Kleinsake onds Voorsorgsf om die maandelikse bydrae teen my rekening te in ooreenstemming debiteer met die debietorderstelsel wat in samewerking met my bank/bouvereniging bedryf word my rekening en om dienooreenkomstig te debiteer met sulke bedrae elke transaksie asof deur my persoonlik onderteken is. Hierdie magtiging is geldig vir alle bedrae skuldig wat is ver in terme van die ooreenkoms. Ek onderneem onds om in die kennis f te stel van enige verandering in die bank/bouverenigingbesonderhede hierbo soos uiteengesit. Ek verklaar hiermee dat: Alle werknemers waarvoor vir lidmaatksap aansoek gedoen word na die beste van my wete in goeie gesondheid verkeer. Geen werknemers waarvoor vir lidmaatskap aansoek gedoen aan enige wordfisiese gebrek of terminale siekte ly nie. Alle werknemers waarvoor vir lidmaatskap aansoek gedoen word vandag aktief in diens is. Ek is bewus dat die koste vir die sterfte-, ongeskiktheids- begrafnisvoordele, en administrasie en kommissie, waar van ng, toepassi afgetrek word vanaf die maandelikse bydraes. Ek doen hiermee formeel aansoek om as deelnemende werkgewer geregistreer te word. Signed at Geteken te Signature of account holder Handtekening van rekeninghouer on this op die day of dag van Name of account holder Naam van rekeninghouer year jaar Intermediary Details/Besond erhede van Tussenganger Initials Voorletters Broker's code Makelaarskode J E PVT 071 Surname Van Tel No (code) Tel-no (kode) KUGE egion Streek address E-Pos adres PETOIA jan@jefc.co.za Signature of broker/agent Handtekening van makelaar/agent FAIS egistration Number/ FAIS egistrasienommer

12 Details of employees/besonderhede van werknemers (This may also be submitted in electronic or MS Excel format) No. of Initials & first Date of Male/ Name & Surname of dependant Plan Surname name birth Female ID number spouse children choice Van Voorletters & Geboortedatum Vroulik gade afhanklike keuse Manlik/ ID-nommer Naam en Van van Aantal Plan voornaam kinders Monthly contribution Maandelikse bydrae 12