L5
Retirement Benefits
| 5. | RETIREMENT BENEFITS | |
| 5.1 | When payable |
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| 5.1.1 |
retirement benefit becomes payable when a MEMBER
retires from the service of the EMPLOYER on or after his/her NORMAL
RETIREMENT DATE. Late retirement in terms of this Rule is subject to the
following: (a) the agreement may not be renewed beyond the attainment of age 70; (b) contributions in terms of Rule 4.1 and 4.2 will continue to be payable by and in respect of the MEMBER during continuous service beyond the NORMAL RETIREMENT DATE. |
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| 5.1.2 |
A retirement benefit also becomes payable when a
MEMBER's service with the EMPLOYER is terminated before his/her NORMAL
RETIREMENT DATE, provided that - (a) the termination amounts to retirement, and it occurs on or after the MEMBER reached the age of 55 years; or (b) the termination amounts to retirement owing to ill-health. |
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| 5.2 | Benefit at retirement |
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| A MEMBER’s retirement benefit consists of an annuity policy purchased with the MEMBER SHARE. By applying to the FUND prior to his/her retirement, the MEMBER may convert the whole benefit, or a part of it, into a lump sum payment, subject to statutory measures in this regard. | ||
| 5.3 | Purchase of annuity policy |
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| 5.3.1 | The annuity policy referred to in the preceding RULE must be purchased from a REGISTERED INSURER selected by the MEMBER with the MEMBER as owner of the policy. | |
| 5.3.2 | The FUND’s liability in respect of a retiring MEMBER is limited to the conclusion of the annuity policy with the REGISTERED INSURER for the payment of the annuity direct to the MEMBER. Immediately after the FUND has paid the premium on the annuity policy and, where applicable, made payment of any lump sum, the MEMBER's MEMBERSHIP of the FUND ceases. | |
| 5.3.3 | More than one annuity policy may be purchased in respect of a MEMBER subject to the terms and conditions prescribed by the REVENUE AUTHORITIES in this regard. | |
| 5.3.4 | Subject to the right of conversion into a lump sum payment provided in the preceding RULE, the annuity policy must be non-commutable and non-surrenderable during the life of the retired MEMBER. It may not be transferred, assigned, reduced, hypothecated or attached by creditors as contemplated by the provisions of sections 37A and 37B of the ACT. | |
| 5.3.5 | The annuity must be payable at least until the death of the MEMBER. It may be a single-life annuity, a joint and survivorship annuity or a flexible annuity. | |