National Tertiary Retirement Fund Case Study

T he National Tertiary Retirement Fund offers both death and medical disability benefits to contributing members of the Fund. These benefits are referred to as Risk Benefits within the Fund. It is however important that members understand the different benefits structures offered by the Fund before choosing a Risk Benefits option. Kindly refer to your member benefits statement which specifies your current Risk Benefits structure.

In brief the Rules of the NTRF allow the following Risk Benefits structures.

SUMMARY OF THE RISK BENEFITS STRUCTURES OF THE FUND

FIXED RISK BENEFITS STRUCTURE FLEXIBLE RISK BENEFITS STRUCTURE

· The Fixed Risk Benefits structure is applicable to members who joined the Fund prior to 1 September 2002 and who have not previously switched to the
If a member fails to do so, the benefit will be “capped” at R 11 million. The mentioned R 11 million is called the “free cover limit”. Comment by Louw, Thelma: For a death benefit?!?!?!
· Should a member elect option 1 then the member may increase his/herits cover to option 2 at the date of the member’s marriage or birth of a child without providing evidence of good health. In addition, on 1 July each year, members may elect to move from option 1 to option 2, although the Insurer may require a member to provide evidence of good health.
· The Fund’s obligation to a member’s beneficiaries is limited to the amount paid by the Insurer. A member’s beneficiaries may apply this benefit at their discretion after which the Fund will have no further obligation to the family or next of kin of the deceased member.

IMPORTANT NOTES IN RESPECT OF MEDICAL DISABILITY