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 (having left office) provides the Fund with an instruction to pay the benefit or transfer it to another fund. This can happen if (for example) there are problems with the member's tax affairs and SARS refuses to issue a tax directive, or if there is some problem with the information on the member's exit form. 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 (after you have left office) you provide the Fund with a complete and valid instruction to pay you the benefit, or to transfer it to another fund.
- From this point (within 7 days of the date when the instruction was received by the Fund), net cash or money-market interest earned will be added to the benefit payable.
A member who leaves office 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.) As noted above, while you are a deferred beneficiary, your Fund Credit will remain invested in accordance with the Fund’s investment strategy. However, at any time after you leave office, you can choose to take your Fund Credit as a cash withdrawal benefit (minus tax), or transfer it to another fund, or take part in cash (minus tax) and transfer the balance to another fund - and if you are aged 50 or over you can also choose to take your Fund Credit as a retirement benefit from the Fund.