Death Benefits

L6
Death Benefits

6.	DEATH BENEFITS
6.1	Death before or on the NORMAL RETIREMENT DATE while an EMPLOYEE
	6.1.1	If a MEMBER dies before or on the NORMAL RETIREMENT DATE while he/she is an EMPLOYEE, the MEMBER SHARE is applied to purchase annuity policies for his/her DEPENDANTS and NOMINEES.
	6.1.2	If a MEMBER dies before or on the NORMAL RETIREMENT DATE while he/she is an EMPLOYEE, the cash benefit to which the MEMBER would have been entitled in terms of Part 7 on voluntary termination of service immediately prior to his/her death, is applied to purchase annuity policies for his/her DEPENDANTS and NOMINEES.
6.2	Death after the NORMAL RETIREMENT DATE while an EMPLOYEE
	If a MEMBER dies after the NORMAL RETIREMENT DATE and while he/she is an EMPLOYEE, the MEMBER SHARE is applied to purchase annuity policies for his/her DEPENDANTS and NOMINEES.
6.3	Purchase of annuity policy at death
	6.3.1	The annuity policies referred to in this Part must be purchased from a REGISTERED INSURER selected by the DEPENDANT or NOMINEE, or by the guardian or trustee in the case of a minor.
	6.3.2	Each annuity policy must be purchased with the DEPENDANT or NOMINEE as owner of the policy. A policy may be purchased with the joint owners being more than one DEPENDANT or NOMINEE.
	6.3.3	The FUND's liability in respect of an annuity policy and the payment of the annuity payable in terms of it is limited to
		the conclusion of the annuity policy with a REGISTERED INSURER in favour of the DEPENDANT or NOMINEE; and payment of the premium on the annuity policy.
	6.3.4	More than one annuity policy may be purchased in respect of a deceased MEMBER, subject to the terms and conditions prescribed by the REVENUE AUTHORITIES in this regard.
	6.3.5	Subject to the right of conversion into a lump sum payment provided below, the annuity policies must be non-commutable and non-surrenderable. And they may not be transferred, assigned, reduced, hypothecated or attached by creditors as contemplated by the provisions of sections 37A and 37B of the ACT.
6.3	Conversion of annuity policy into a lump sum payment
	At the request of a DEPENDANT or NOMINEE, or his/her guardian or trustee in the case of a minor, for whom an annuity policy is to be purchased in terms of this Part, a part or the whole of the annuity policy can be converted into a lump sum payment within six months after the death of the MEMBER.

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