Agricultural Sector Provident Fund

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A UNIQUE PROVIDENT FUND FOR THE AGRICULTURAL SECTOR ADMINISTERED BY ABSA CONSULTANTS AND ACTUARIES

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The unique provident fund offering retirement, resignation, death and funeral benefits to employees of the agricultural sector in a single package.

Absa Consultants and Actuaries, in co-operation with the formal agricultural sector, offers participating employers a Provident Fund in order to provide their employees with retirement and risk benefits. The Agricultural Sector Provident Fund provides retirement, withdrawal, death and funeral benefits. The administration, advice and actuarial services for this fund are handled by Absa Consultants and Actuaries. The management of the fund is handled by a Board of Trustees, with representatives from Absa, AGRI SA, LWO, TLU, as well as independent trustees.

Benefits for the Employer and his Employees

  • One single contribution covers the total benefit package.
  • The employer’s responsibilities towards his employees are alleviated considerably.
  • Employees are offered peace of mind.
  • Employees’ accumulated benefits are transferable from one employer to the next.

Death benefit

In the event of death before retirement, the member’s dependents and/ or beneficiaries will
receive a cash benefit equal to his or her fund value in the Provident Fund. From the separate
schemes, the member’s dependents and/ or beneficiaries will receive the death and funeral
benefit equal to the chosen plan (subject to tax).

Retirement benefits

At retirement the member's death and funeral benefits will cease. The member will receive his or her fund value in the Provident Fund as a cash benefit. Subject to the employer's consent, the member may retire at any age between 55 and 70 (subject to tax).

Should no claim forms be received, the money will be transferred to the unclaimed account.

Resignation benefit

Upon termination of service with an employer, the member’s death and funeral benefits will
cease. The member’s fund value in the Provident Fund can be transferred to any approved
fund. Alternatively, the employee may apply to withdraw his or her benefit in cash (subject
to tax).

Should no claim forms be received, the money will be transferred to the unclaimed account.

other benefits

  • Membership
    Each employee decides which plan he or she wants to join.
  • Tax
    The net contributions by the employer to the fund (total contribution less the premium cost of
    the group benefit scheme) are deductible for tax purposes as determined by the Tax Act.
  • Administration
    Currently the fund is administered by Absa Consultants and Actuaries and audited annually
    by independent auditors.
  • Investments
    The portion of the contributions available for retirement funding (savings component) is
    invested in relevant portfolios of well-known investment managers in order to ensure that
    members’ savings component is exposed to growth with limited risks.
  • Ownership
    Although employers are registered as participating employers of the fund with their own
    plans, a separate investment account is kept for every employee (who is a member of the
    fund). Thus, every employee has ownership of his/her own investment account.
  • Benefit structure
  • In order to make provision for different needs, different benefit plans are offered. This can be
    extended at a later stage, dependent on the need and the effect of inflation.

Click here for more information: Agricultural Sector Provident Fund

New plans on the Agricultural Sector Provident Fund from
1 July 2016 to 30 June 2017

Agricultural Sector Provident Fund
In order to make provision for different needs, different benefit plans are offered. This can be extended at a later stage, dependent on the need and the effect of inflation. The benefit structure is set out in the table below.
Plan
Plan A1
Plan A2
Plan B
Plan C2
Plan D
Plan E
Contribution
R121.00
R121.00
R140.00
R158.00
R185.00
R317.00
Death cover
-
R12 500
R12 500
R15 000
R17 500
R30 000
Capital Dissability
-
-
-
-
R17 500
R30 000
F
U
N
E
R
A
L

Member
-
R10 000
R12 500
R12 500
R15 000
R20 000
Spouse
-
R10 000
R12 500
R12 500
R15 000
R20 000
Child 14-21 years
-
R10 000
R12 500
R12 500
R15 000
R20 000
Child 6-13 years
-
R5 000
R6 250
R6 250
R7 500
R10 000
Child 0-5 years
-
R2 500
R3 125
R3 125
R3 750
R5 000
Less total costs
R18.14
R57.64
R64.22
R68.75
R84.54
R124.31
Net retirement provision
R102.86
R63.36
R75.78
R89.25
R100.46
R192.69

Plan A: Investment only
Contributions and separate group scheme structures as from 1 July 2016 to 30 June 2017

  • The selected plans can differ from one employee to the next. The plans can also be reviewed and adjusted continuously. The amendment will only be activated after the administrative office has been informed of this in writing before the 20th of every month.
  • The employer and employee can decide for themselves which plan suits each individual employee. As a result some of the employees may choose plans with basic benefits while other employees may choose plans with more comprehensive benefits, after which it will be implemented accordingly.
  • It is not necessary for an employer to include all his employees on the same plan.
  • Members are also allowed to make additional contributions to the fund for the purposes of additional retirement funding.

print this table

Click here for more information: Agricultural Sector Provident Fund

 

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