STANLIB Retirement Funds Death Claim Process Brochure. stanlib.com. STANLIB is an authorised financial service provider

Transcription

1 STANLIB Retirement Funds Death Claim Process Brochure

2 Understanding our process: the passing of an investor We understand that the passing of a loved one is extremely difficult. The added burden of needing to wind up investment accounts can seem daunting. In this document, we guide you through our process to ensure that the experience is as seamless and simple as possible. We are here to help you. What happens to the investment when the investor passes away? Classic Retirement Annuity Fund Classic Preservation Plans These products are governed by the Pension Funds Act which means that there are many legislated steps which need to be followed. An overview of the process we will follow Notification of death submitted Declaration of dependency form & documentation requested Trustees investigate who may be eligible to receive a portion of the benefit Trustees communicate who they deem will receive a benefit Beneficiaries elect how they wish to receive proceeds. Beneficiary instruction processed What happens when we receive a notification of an investor s passing? The following takes place when we receive a notification of death: All units in the investment account will be moved/switched into the STANLIB Institutional Money Market Fund. This is to protect the value of the investment while the death benefit process is underway. We will cancel any debit order instructions on the account (Retirement Annuities only) We strongly suggest that you contact your financial adviser to help you with your finances during this period. If you wish for an advisor or other third party (eg. your attorney) to represent your interests in the claim process, please provide us with a power of attorney to enable the party to get information and submit all requirements for you. Note that because the contract between the advisor and the deceased ends when the member passes away, the Financial Adviser on record for the account will no longer receive any advice fees unless you make other arrangements with him / her. Who will receive the death benefit? When a member of a retirement fund passes away, the distribution of the death benefit is determined by the Trustees of the Fund. This is a responsibility which our Trustees take extremely seriously, and undertake with due skill and care. In terms of Section 37C of the Pension Funds Act 24 of 1956 ( the Act ), trustees are required to: Identify and trace dependants and nominated parties of deceased members; Make death benefit allocations on a fair basis; and Distribute the benefits The Trustees have a discretion to pay the benefits to the deceased Member s dependants and/or nominees in such proportions as they deem fair. Dependants vs. Nominees Dependant The spouse and all children of the Member, along with any other person, including the parents of the member, who depended on the Member for financial support, at the time of death and/or in the future. Nominee A person who has been nominated by the Member in their application form or subsequent instruction to receive a benefit from the Fund in the event of the Member s death.

3 Only natural persons may be nominated. In terms of the provisions of Section 37C, any benefit (net of permissible deductions) payable by a fund on the death of a member will not form part of the deceased s estate but will be dealt with as follows: Allocation to Dependants: When establishing who the dependants of the deceased are, the Trustees of the Fund will take several factors into consideration, including but not limited to: Preference in respect of persons of whom the deceased Member had a legal liability to maintain The age of the dependants The person s relationship to and with the deceased Member The extent of the financial dependency The personal financial position of each potential dependants Any future earning potential and prospect of the dependants The size of the benefit, for example: a small benefit may not be sufficient to split between both dependants and nominees. The Trustees of the Fund may make an allocation to some or all of the dependants. In the event of divorce, should an agreement be in place stipulating that the non-member is entitled to a share of the Member s benefits, this will be taken into consideration in conjunction with other legal liabilities the Member may have had. Potential parental responsibility of the deceased is also taken into consideration. Allocation to Nominees: The member can elect parties whom he/she wishes to receive a portion of the death benefit. This is indicated on the membership application form and may be amended at any time subsequently by the member. The Trustees will consider the parties nominated, but will give preference to dependants when allocating the death benefit. In the case of an insolvent estate, unpaid debts will be settled before allocations are made to nominees. The liquidity of the estate is not considered when the death benefit is distributed to dependants of the deceased Member. What happens if there are no nominees or dependants? If the Trustees are not able to trace any dependants and there are no nominees, then the benefits will be paid to the Member s estate. Can dependants and nominees get a financial advisor to assist? Yes you may, in fact we encourage this. We have a Power of Attorney document which you may use to allow your financial advisor to assist you and to receive information about the status of the investigation. What information do the Trustees require? The potential beneficiary, or his/her financial advisor, attorney or executor must complete and submit our Declaration of Dependency form together with relevant annexures and the required supporting documentation as specified on the form to us at lispinstructions@. The forms is available on the Other forms section of: The following documentation should be submitted along with the Declaration of Dependency form and Annexures: Copy of the death certificate Notice of Death in the form of a copy of the BI1663/DHA-1663 Last Will and Testament of the deceased, if available Copy of the deceased s medical aid card, or medical aid certificate Preliminary Liquidation and Distribution of the estate of the deceased, if available. Confirmation of the tax number of the deceased. Annexure A: letter from a close friend confirming the family structure/dependency In the event of an unnatural death we will also require: Police case number and the details of the investigating office If the deceased was married, had a life partner, was divorced or widowed we will also require the following as applicable in addition to the above: Copy of the Marriage certificate A statement from the Tribal Authority in the case of a Customary Marriage (indicating multiple spouses if applicable). Divorce settlement/agreement, where applicable Copy of the death certificate of a previous spouse

4 Annexure B Declaration of Dependency; or If the deceased has children we will also require the following as applicable for each child in addition to the above: Certified copy of unabridged birth certificate for minors, reflecting the name of both parents Certified proof of Guardianship or proof of caregiver status to the children, if the parents are not the guardians Annexure B Declaration of Dependency; or If the deceased has living parents we will require the following additional documents: Annexure B Declaration of Dependency; or If there are other dependants apart from those described above, we will require the following to be completed by that party: Annexure B - Declaration of Dependency Additional information which may be required: Additional information may be requested depending on the circumstances of each case. In this event, we will contact you to provide the necessary information. How long will the process take? On being notified of the death of a member, the Trustees have a period of 12 months by law within which to determine dependency and to trace dependants. We will make every attempt to process the claim as quickly as possible. Supplying all the required information as accurately and timeously as possible will assist to speed up the process. Cases which involve complex individual circumstances will take longer to finalise. Should the Trustees deem that payment should take place to a nominee, they will require confirmation from the Executor that the estate is solvent before making any payment. If the estate does not provide this confirmation then the Trustees must wait 12 months to pay the nominee. Should the estate be insolvent, the Trustees will be instructed to pay the estate first and only if there are still funds when the Estate Liquidation and Distribution account has been approved by the court, will the nominee receive payment. What happens when the Trustees have made their determination? Written confirmation of the determination together with information on the benefit options available to the beneficiaries, will be sent to the dependants and nominees. Any person addressed in the determination letter may object to the decision of the Trustees provided that the objection is submitted within 15 working days with supporting documentation and proof of why the person disagrees with the Trustees decision. How is the death benefit distributed? The beneficiary may decide to accept the benefit via a cash payment, or may opt to purchase an Annuity product in their name. We can only distribute the benefit once we have received the election from all of the beneficiaries. In the event of a beneficiary electing to take a cash lump sum, income tax as determined by the South African Revenue Service (SARS) according to the deceased s tax rate, will be deducted before the benefit is paid out. Under certain circumstances set out in the Act, the Trustees may pay the benefit to a trust or a beneficiary fund. When benefits are paid into a trust or a beneficiary fund on behalf of the dependant or nominee, this is considered the same as paying the dependant or nominee directly. Payment to a trust may take place under the following circumstances: If the trust was nominated by the deceased member, the dependants are the sole beneficiaries of the nominated trust, and the Trustees determine that this is in the best interest of the dependants; If a major dependant or nominee nominates such a trust to receive his/her benefit, providing he /she is the sole beneficiary of that trust; If a person recognised in law or appointed by the court to manage the affairs of a minor or major nominee nominates such a trust. How will we keep you informed of our progress? The late Member s case will be allocated to a dedicated Case Manager, who will be the first point of contact for the dependants/ nominees, and will keep you up to date frequently throughout the process.

5