Absa Small Business Provident Fund

Sanlam Small Business Provident Fund

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This unique Provident Fund from Sanlam offers Small Business Owners and their employees Retirement, Withdrawal, Disability and Funeral Benefits in one package

Benefits for you, the employer

• Retain 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 Provident Fund is tax deductible to a maximum of 20% of the total salary roll. The employee derives no tax benefit from contributions in terms of the Income Tax Act.

  Please take note:
  In order for the employer to qualify for tax relief, the employees must be in the employment of a registered business. 

• 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 value in the Fund for each member is 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.

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Benefits for the employee

• Retirement Benefit
  

  At retirement at any age between 55 and 70, the member will receive the accumulated value (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, capital disability and funeral cover, will cease.

• Resignation Benefit
  

  Upon termination of service with an employer, the member's risk benefits, i.e. death, capital disability and funeral cover, will cease. The member is entitled to the accumulated value 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 Retirement Annuity.  Alternatively the accumulated credit can be transferred to another fund offered by the new employer.

• Death Benefits
  

  In the event of death before retirement, the member's dependents and/or beneficiaries will receive benefits from the Fund and the separate 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 accumulated value 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.

  •  Separate 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 separate 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 administrator of the Fund. The cash benefit will consist of the death cover offered by the chosen plan as well as the 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 R75000 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 administrator, 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 Sanlam Small Business Provident Fund will be covered for death and 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 funeral benefit will not be payable. 

• Total and permanent disability
  

  Should an employee become totally and permanently disabled (as determined by the insurer based on detailed medical evidence submitted) before the age of 65, he or she will receive benefits from the Fund and the separate 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 accumulated value in the Fund (net contributions plus interest).

  • Total and permanent disability in the Separate Group Scheme

    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, after a waiting period of six months. 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 65th birthday. Please note that pre-existing conditions apply. This means that a member cannot claim for a medical condition that existed 6 months prior to his commencement date in the Fund within a 12 months period after this commencement date.

• 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.

  • 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 7th of a month, and if the 7th 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.

  Please note that all communication for changes to the membership must be received by the Fund in writing before the 20th of the month.  The relevant changes will then be made to the system before the debit order run on the 1st of the next month.

  • Risk 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, capital disability or funeral benefits as from the first day of the first month for which no contributions were received. Sanlam 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 Riot Exclusions

    There are war and riot exclusions and terms and conditions may vary from time to time.

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Benefit and Contribution Structure

Please note: The Sanlam Small Business Provident Fund fees/contributions will change from 1 July 2019, starting from a minimum contribution of R257.00 p.m.

Plan	SM1	SM2	SM3	SM4	SM5	SM6	SM7	SM8	SM9	SM10
Contribution p.m.	R257.00	R257.00	R347.00	R504.00	R693.00	R872.00	R1191.00	R1670.00	R2059.00	R2783.00
Death Cover	-	R15 000	R25 000	R50 000	R55 000	R75 000	R100 000	R150 000	R200 000	R220 000
Capital Disability Cover	-	R15 000	R25 000	R50 000	R55 000	R75 000	R100 000	R150 000	R200 000	R220 000
Funeral:	-
Member	-	R12 500	R15 000	R15 000	R15 000	R15 000	R15 000	R15 000	R15 000	R15 000
Spouse	-	R12 500	R15 000	R15 000	R15 000	R15 000	R15 000	R15 000	R15 000	R15 000
Child 14 - 21	-	R6 250	R7 500	R7 500	R7 500	R7 500	R7 500	R7 500	R7 500	R7 500
Children 0 - 13	-	R4 375	R5 250	R5 250	R5 250	R5 250	R5 250	R5 250	R5 250	R5 250
Total cost	R28.43	R64.78	R84.50	R119.53	R135.60	R156.40	R182.40	R234.40	R286.40	R307.20
Net Retirement savings	R228.57	R192.22	R262.50	R384.47	R557.40	R715.60	R1008.60	R1435.60	R1772.60	R2475.80

Minimum Contribution and Separate Scheme Structure as from 1 July 2019 - 30 June 2020

SM1 = Investment only

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