Death Benefits

The Fund ensures financial security for your dependants in the unfortunate event of your death. To qualify for death benefits, the employer and the Fund must be notified of your death.

Please note: It is crucial to complete and update the Beneficiary Nomination Form regularly. Although the Trustees will follow your wishes as far as possible, the final decision rests with them to ensure all dependants are considered according to the Pension Funds Act.  Please click here to read more about the Beneficiary Nomination Form. Please ask your Bursar or HR for a copy of the Nomination Form and return the completed form to your Bursar or HR office. Alternatively, click here to download the form.

You have a death benefit before you retire as well as after retirement if you receive a pension from the Fund.  Let’s look at each of these:

Death benefit before retirement

Your dependants will receive a taxable lump sum multiple of your salary based on your age at the date of death.

 

Age Bands	1 March 2024
Age 18-35	3.96
Age 36-40	3.71
Age 41-45	3.56
Age 46-50	3.07
Age 51-55	2.94
Age 56-60	2.90
Age 61-64	2.64
Age 65-69	2.11

 

Spouse’s Pension

Benefit: 50% of the pension the member would have received at normal retirement age, based on the annual pensionable salary at the date of death.

Children’s Pension

Benefit: One-third of the spouse’s pension for each child (maximum of three children) until the child reaches adulthood.

If no spouse’s or children’s pension is payable, a refund of the member contributions with 8% p.a. compound interest is payable to the beneficiaries.

Death benefit after retirement

• Your full pension continues for a minimum of five years from your date of retirement, regardless of whether you pass away during this period.
• Afterward, your spouse receives 50% of the pension you were receiving, or would have received if you had not commuted any portion in cash.
• Additionally, a lump sum benefit of R2,000 is paid.

 

You have a death benefit before you retire as well as after retirement if you receive a pension from the Fund.  Let’s look at each of these:

Death benefit before retirement

Your dependants will receive a taxable lump sum multiple of your salary based on your age at the date of death and the option (0.55%, 1.05% or 1.55%) selected by your school PLUS your Accumulated Credit.

 

0.55% Option

Age Bands	1 March 2024
Age 18-35	3.96
Age 36-40	3.71
Age 41-45	3.56
Age 46-50	3.07
Age 51-55	2.94
Age 56-60	2.90
Age 61-64	2.64
Age 65-69	2.11

 

1.05% Option

Age Bands	1 March 2024
Age 18-35	7.92
Age 36-40	7.44
Age 41-45	7.13
Age 46-50	6.05
Age 51-55	5.46
Age 56-60	4.60
Age 61-64	4.11
Age 65-69	3.02

 

1.55% Option

Age Bands	1 March 2024
Age 18-35	12.29
Age 36-40	11.64
Age 41-45	10.90
Age 46-50	10.15
Age 51-55	9.18
Age 56-60	7.48
Age 61-64	6.40
Age 65-69	4.43

Additionally, they will receive a refund of your accumulated credit.

Example: Caren’s monthly pensionable salary was R20,000 and she died at age 40.  Her Accumulated Credit at that date was R900 000. Her total death benefit will be calculated as follows: =Insured death benefits PLUS Accumulated Credit. =R20,000 x 12 months x a factor of 3.71 + R900 000 = R890,400 + R900 000 = R1 740 400

Death benefits after retirement

If you purchased a pension from the Scheme:

• Your full pension continues for a minimum of five years from your date of retirement, regardless of whether you pass away during this period.
• Afterward, your spouse receives 50% of the pension you were receiving or would have received if you had not commuted any portion in cash.

If you purchased a pension outside the Scheme:

The benefit will depend on the pension you purchased from the registered insurer.

 

Ensure that the amount of cover for death and disability provided through the Fund is sufficient for your family's needs. If you feel it may not be adequate, consider purchasing additional cover outside the Fund.

Payment of death benefits may take time. Ensure that your spouse has access to funds during this period. Speak to an approved financial advisor for assistance with financial planning.

Keep your tax affairs up to date, as any lump sum benefit payout from the Fund is subject to tax clearance from SARS.

Contact the Old Mutual Death claims and Funeral helpline on:

Tel: 021 509 4351

Email: gapdeathclaims@oldmutual.com