INTEREST ON LATE-PAID BENEFITS
The situation often arises that the Fund is only in a position to pay benefits to a member who has left office some weeks or even months after the date on which the member leaves office. This can happen because it takes the member some time to decide exactly how she or he wants to deal with the benefit, and to complete the necessary forms. In such cases, benefits will be calculated as follows:
- The benefit amount will remain invested in accordance with the Fund’s investment strategy until the date on which you leave office.
- From this point, net cash or money-market interest earned will be added to the benefit payable.
- A member who leaves office and has not given clear instructions to the Fund within 24 months of her or his office ceasing, will automatically become a deferred beneficiary of the Fund. (The only exception is if the Fund has furnished a guarantee to a Bank in respect of a housing loan to the member, in which case the Fund will have to settle the housing loan out of the member’s benefit when the member leaves office.) When a member becomes a deferred beneficiary, either by choice or after the 24 month period has elapsed, the benefit amount will be taken from the bank account and reinvested in accordance with the Fund’s investment strategy.