Frequently asked questions about provident fund
1. Why do I as a Security Officer have to contribute towards my retirement to the PSSPF?
Because you are expected to do so in terms of the Sectoral Determination
2. What do I do as a Security Officer if I want to be a member of the Fund?
You must firstly ask your employer if he is registered with the PSSPF. Also there has to be a deduction made by your employer from your monthly earnings. To check if these contributions do reach the fund send a whatsapp to 087 240 7006
3. Who qualifies to be a member of the Fund?
Each person who is employed in the Private Security Sector and who:(a) is deemed to be an employee in terms of the Sectorial Determination. Please refer to clauses 2 (24) and 18, respectively of the Sectorial Determination for ease of reference.(b) Has not reached the Normal Retirement Date (this is the date that a Member attains the age of 65).(c) is not a member of another approved retirement fund providing retirement benefits which were set up in terms of an agree under the Labour Relations Act of 1956 or in terms of a collective agreement concluded in council in terms of the Labour Relations Act (Act No. 66 of 1995), but excludes any person who is employed by an employer who has been granted an exemption to participate in the Fund.
4. How do I know that my employer is compliant with the Fund?
Send us a whatsapp 087 240 7006 and we will send you confirmation.
5. When does the Fund review member benefits currently offered?
The fund reviews the benefits every year.
6. How does the PSSPF deal with non-compliant employers?
The PSSPF has a duty to monitor compliance with the provisions of the Sectoral Determination as well as the Pension Funds Act and the regulations promulgated under the Act. The PSSPF has internal and outsourced resources that have been placed in order to deal effectively with the issues of non-compliance facing the fund. These involve client visits, initiating meetings with employers, payment arrangements, and civil and/or criminal litigation.
7. What is the Fund’s scope of jurisdiction in terms of prosecutions?
The PSSPF has the locus standing to refer a non-compliant employer to the requisite forum such as the Pension Funds Adjudicator, the office of the Registrar of pension funds and/or a court of law to institute criminal and/or civil proceedings.
8. How much should the employer deduct from my salary?
The employer must deduct 7,5% of your monthly salary and add a similar amount giving a total of 15% payable to the fund. Note however that if you are entering the Private Security Sector for the first time or who has been out of the Private Security Sector for more than six months (and his benefit has been paid by the Fund) shall, for the first two months of Membership, only be entitled to risk benefits (death, permanent disability and funeral benefits, respectively) provided by the Private Security Sector Provident Fund. In this respect the contribution made shall be a total of 5 per cent of salary which shall be paid in equal shares by the Member and Employer, respectively. This translates to the Member contributing 2.5 per cent of his salary and the Employer contributing 2.5 per cent on behalf of the Member.
10. How does the Fund allocate various benefits?
The fund takes a total of 10% of salary and allocates this to your retirement contribution. The balance of 5% goes towards death, disability, funeral and administration costs.
11. What is the Resignation and Dismissal Benefit?
If a MEMBER who is not qualified to retire in terms of the rules leaves SERVICE, whether of the MEMBER’S own accord or as a result of dismissal, including dismissal for incapacity or as a result of redundancy or retrenchment, such a MEMBER will become entitled to the MEMBER’S FUND CREDIT as at date of leaving SERVICE, adjusted to take account of INVESTMENT RETURNS.
Options available to the member are either;
1. to transfer the MEMBER’S FUND CREDIT to an APPROVED PENSION FUND APPROVED PROVIDENT FUND, APPROVED PENSION PRESERVATION FUND, APPROVED PROVIDENT PRESERVATION FUND or APPROVED RETIREMENT ANNUITY FUND; or2. to receive the MEMBER’S FUND CREDIT as a cash lump sum; or3. to receive the MEMBER’S FUND CREDIT partially as a lump sum and to transfer the remaining part as indicated above, Note that if the MEMBER fails to make an election within 6 (six) months from the date of leaving SERVICE and if the MEMBER’S EMPLOYER has certified that the MEMBER is no longer in employment with that EMPLOYER, the MEMBER is deemed to have elected to receive a cash lump sum benefit; provided further that, if when the FUND is able to effect transfer of the benefit, or make payment of the benefit, the MEMBER is an ELIGIBLE EMPLOYEE, then that benefit may not be transferred or paid but must be retained and merged with the new record of the MEMBER as part of the MEMBER’S FUND CREDIT.A MEMBER who withdraws from the FUND in terms of definitions explained above has no further claim on the FUND once the benefit is paid or transferred in terms thereof.
12. What is my Death Benefit?
Benefit
On your death prior to normal retirement date a lump sum benefit equal to two and half times Annual Fund Salary plus your full accumulated fund credit will be paid to your dependants. All contributions due at the time of death should have been paid by the employer failing which the benefit will not be payable.
Notification of Claims and Submission of Documentation
A formal, written claim in respect of the benefit together with all the relevant documentation, information and particulars required indicated below, shall be lodged and submitted with the TRUSTEES within 12 (twelve) months from the date of a MEMBER’S death, failing which the benefit shall not be payable.
Payment of Benefit
The death benefit shall be made in terms of Section 37C of the ACT; provided that:
Should payment not be made within the period specified in Section 37C of the ACT, interest shall be payable on the amount of the benefit at such rate as shall be determined by the TRUSTEES in consultation with the ACTUARY from time to time and the benefit adjusted accordingly.
The TRUSTEES may appoint a TRACING AGENT to trace any potential beneficiaries in order to give effect to the provisions of Section 37C of the ACT.
13. What is my funeral benefit?
The fund offers funeral benefits to members. Momentum was appointed in July 2010 to make payments to members of the fund when these are due. The purpose of funeral benefits is to help pay for funeral costs when a member or dependant passes away. The dependants considered are the member’s spouse and eligible children.
Wherever possible, Momentum will process a funeral benefit claim within 72 hours of receipt; however, payment can be delayed if the claim form or the documentation accompanying a claim is incomplete or incorrect. In order to allow Momentum to process the claim quickly and efficiently, the claimant must ensure that the information provided is complete and correct.
If a member retires or exits the Fund and has not received his / her benefit no funeral benefits are payable.
A spouse of a member or pensioner – is defined as being a person who is:
• legally married to the member or pensioner as defined above; or
• a spouse according to indigenous law or custom (A certificate of customary marriage, lobola letter, or two affidavits from each family confirming the customary union is required.Lobola letters and affidavits confirming customary marriage must specify the place, date and parties to the customary union, and also the lobola paid.); or a spouse according to the tenets of religion (i.e. Muslim or Hindu marriages);
14. What are the Retirement Benefits?
A MEMBER must retire and be paid his full accumulated credit on reaching NORMAL RETIREMENT DATE unless the MEMBER’S EMPLOYER agrees to the MEMBER remaining in SERVICE after that date.
Early Retirement
A MEMBER who has reached the age of 55 (fifty-five) years may, with the agreement of the EMPLOYER, retire on the last day of any month occurring before the MEMBER reaches NORMAL RETIREMENT DATE.
Ill-Health Early Retirement
If the EMPLOYER and the TRUSTEES, after considering medical evidence acceptable to them, consider that a MEMBER has become incapable of discharging the MEMBER’S duties, they may agree to the MEMBER’S retirement at any time prior to the MEMBER’S NORMAL RETIREMENT DATE.
Late Retirement
A MEMBER who is allowed to remain in SERVICE after NORMAL RETIREMENT DATE shall retire on such later date as the MEMBER agrees with the MEMBER’S EMPLOYER; provided that a MEMBER shall not retire after the age of 70 (seventy) years.
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whatsapp number 087 240 7006 for services and to check your balances