ABSA CONSULTANTS AND ACTUARIES EMPLOYEE BENEFIT SOLUTIONS ABSA SMALL ENTERPRISE PROVIDENT FUND UNIQUE PROVIDENT FUNDS FOR SMALL, MICRO AND MEDIUM ...
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ABSA CONSULTANTS AND ACTUARIES
EMPLOYEE BENEFIT SOLUTIONS
ABSA SMALL ENTERPRISE PROVIDENT FUND
UNIQUE PROVIDENT FUNDS FOR
SMALL, MICRO AND MEDIUM BUSINESSES
ADMINISTERED BY ABSA CONSULTANTS AND ACTUARIES
EMPLOYERS' AND EMPLOYEES' GUIDE
The unique employee benefits solution that offers employers and employees
retirement, withdrawal, death, disability and family funeral benefits in one package
1Participation in the ABSA Small Enterprise Provident Fund - your competitive advantage
Absa Consultants & Actuaries take pride in introducing their individualized and solution driven employee
benefits solution, ABSA Small Enterprise Provident Fund. The ABSA Small Enterprise Provident Fund
was developed by Absa Consultants & Actuaries, an acknowledged market leader in the field of employee
benefits. We are a part of the Absa Group, with access to the considerable resources of this leading
financial services group, yet at the same time independent and not too big, allowing us to focus on the
employer and his unique requirements.
The ABSA Small Enterprise Provident Funds is cost-effective, and moreover, result in a strategic benefit
for your business. By registering your employees with either of The ABSA Small Enterprise Provident
Fund you will provide them with retirement and withdrawal benefits, and provide support to employees
and their families in the event of death and disability, as well as providing funeral benefits.
The ABSA Small Enterprise Provident Fund
The ABSA Small Enterprise Provident Fund is designed specifically with the small, micro and medium
business in mind, and there is no minimum number of employees you need to have in your employ before
you can participate in the fund. The ABSA Small Enterprise Provident Fund is a Provident Fund, and is
registered with the Financial Services Board (12/8/34855/1), and approved by the Commissioner for
SARS (18/20/4/39342). The PAYE number of the fund is 7430730467. The fund is structured as a
provident fund, offering lump sum retirement and withdrawal benefits, with associated separate group
schemes offering group life, group capital disability and family funeral benefits.
By offering employee benefits through the ABSA Small Enterprise Provident Fund, you will have the
competitive edge and reap the benefits of stable and more productive employees, which in turn will lead
to higher productivity and a lower personnel turnover. By registering your employees as members of
either of these funds, your social responsibilities towards them at retirement, in the case of disablement or
unforeseen death and the resulting funeral costs and financial assistance towards dependents afterwards,
decrease significantly. And to top it all, the Receiver of Revenue allows you to deduct your fund
contributions. Isn't it time you took a closer look at what ABSA Small Enterprise Provident Fund can do
for you?
Plans that put you in control
The ABSA Small Enterprise Provident Fund offers you a choice of ten plans as illustrated in the enclosed
table, all of which have their own benefit structure. You can choose the most suitable plan for each
employee according to his or her needs and salary.
Plan INV is a basic savings plan with retirement benefits only, thus an investment plan for retirement.
Plans B - J offer retirement, death, disability and funeral benefits. Please note that Plan B will be
discontinued on 1 August 2008. Junior or lower paid employees can therefore be placed on plans
providing basic benefits and senior or higher paid employees on plans providing more comprehensive
benefits.
The flexible structure of The ABSA Small Enterprise Provident Funds allows you to contribute more than
the specified contribution for each plan if you wish to do so. This option is especially recommended for
older employees for whom no provision for retirement funding has been made. The additional contribution
will be allocated to the member's investment account to create additional retirement funding.
2All permanent employees between the ages of 15 and 65 may join the fund. You do not have to put all
your employees on the same plan - you choose whichever plan suits you and your employees' individual
needs best. When you as a participating employer join The ABSA Small Enterprise Provident Funds, your
current employees have the option to join the fund within the first six months. All new permanent
employees employed by you on or after the date on which you have become a participating employer in
the fund will be compelled to join the fund in terms of the Income Tax Act and as determined in your
employment contracts.
A unique feature of The ABSA Small Enterprise Provident Funds is the option that employers can amend
their choice of option on an annual basis provided that the increased risk benefits will be subject to
accidental cover only for the first three months from the change in cover. This enables you to
accommodate changing circumstances of employees. You may however increase your contribution within
the same plan at any time. Furthermore, benefits should not be eroded by inflation as The ABSA Small
Enterprise Provident Fund makes provision for annual inflation related contribution- and benefit increases.
The Trustees determine these increases which come into effect on 1 August annually.
How the contributions are invested
The costs of providing the death, disability and funeral benefits and a trustee approved administration fee
are deducted from the monthly contribution. To provide for retirement funding, the balance of the
contribution is invested by the Trustees with independent investment managers. Their mandate is clear -
optimise investment returns for fund members, bearing in mind the risk profile of the average member.
For this reason the Trustees follow a generally conservative investment strategy.
Costs
The monthly contribution to the fund is an all inclusive cost, and the following deductions are made from
the monthly contribution before investment:
• Risk Costs - The cost of providing the death and disability and family funeral costs.
• Administration Costs - The cost of administration, actuarial services, consulting and advisory
services.
These costs must be declared to you by your adviser, or the person introducing the fund to you. The fund
will annually advise you of the costs in writing.
We realise that cost is always a factor and keeping it as low as possible is important to you and the
members of the fund. The Funds are obliged to recover contributions by debit order due to the cost
savings involved. This working method allows the Funds to service its members on a sound financial and
administrative basis. Any other means of collecting contributions results in a direct cost component, which
will increase the administration fees. For this reason, this is the only method of payment provided for.
Absa Consultants & Actuaries furthermore do regular market research on the death, disability and funeral
benefits, to offer you the most competitive rates and best policy conditions applicable and suited to the
fund and its membership profile in the market. This way we ensure costs are kept manageable, thus
maximizing the portion of the monthly contributions invested for retirement funding. Because we take
care of administration only, we are totally independent and are therefore in a position to design the best
possible product for your business. This ensures that an optimal portion of your contributions is invested
for the benefit of your employees at retirement. There is no other similar product that has this unique
feature.
3Communication
A participating employer will be issued with a certificate of participation upon joining the fund. Each
member will be issued with a membership certificate once the first contributions have been received.
Every member will receive an annual benefit statement, which will reflect the member’s equitable share in
the fund, as well as the cover for death, disability and family funeral benefits under the associated
separate group schemes. The benefit statements will be forwarded to the participating employer via his
or her financial adviser where applicable for distribution amongst employees. A circular covering aspects
of importance will also be sent to participating employers on an annual basis together with the annual
benefit statements.
Accessibility of benefits
Both of the funds are registered funds, and in accordance with the provisions of the Pension Fund’s Act
and the rules of the fund, members are only allowed to gain access to their equitable share in the fund in
the event of the following:
• Retirement at age 65 (or early retirement from age 55)
• Death of the principal member of the fund (prior to retirement)
• Resignation of the employee from the employ of the employer (prior to retirement)
• Retrenchment or dismissal of the employee by the employer (prior to retirement)
• Transfer to another approved fund (prior to retirement)
• Retirement Benefit
At retirement at any age between 55 and 70, the member will receive the equitable share (net
contributions plus interest) in the fund as a lump sum or, if preferred, a portion or the full value paid by
means of a monthly pension. The member's risk benefits, i.e. death, disability and funeral cover, will
cease.
• Resignation Benefit
Upon termination of service with an employer, the member's risk benefits, i.e. death, disability and
funeral cover, will cease. The member is entitled to the equitable share in the fund (net contributions
plus interest) and this benefit can be taken in cash or it can be transferred to a Preservation Fund or a
Retirement Annuity. Alternatively the equitable share can be transferred to another fund offered by
the new employer (should the member die before retirement, the benefits will be payable to his or her
dependents). The resignation benefit is taxable in terms of the Income Tax Act.
• Death Benefits
In the event of death before retirement, the member's dependents and/or beneficiaries will receive
benefits from the fund and the group schemes according to the rules.
• Provident Fund
From the Provident fund the dependants of the deceased will receive a cash benefit. This cash
benefit will consist of the equitable share in the fund (net contributions plus interest) and this
will be payable to the dependants of the member as prescribed in Section 37C of the Pension
Funds Act. Section 37C requires of the fund, through the employer, to trace all dependants,
and to evaluate their degree of dependency on the member before any benefit may be paid.
This is a timeous process.
4• Group Scheme
In the event of death of the principal member before retirement, the member's dependents
and/or beneficiaries will receive a cash benefit from the group scheme. This benefit is paid in
cash as directed by the employer, and is paid after receipt of all the required claim
documentation by the administrators of the fund. The cash benefit will consist of the death
cover offered by the chosen plan as well as the family funeral benefit. Death cover is provided
without any medical examinations until age 65. Any person who joins the fund on a plan
providing death cover of R75000 or higher may be required to provide medical evidence of
health prior to cover being granted by the insurer. Should this be required, such person will be
informed in writing by the administrators, and provided a reasonable time in which to submit
such required evidence of health. In the event of the death of a member's spouse or child
(under the age of 21), a funeral benefit will be payable to the member according to the
applicable option.
• Waiting period applicable to death benefits under the Separate Group Schemes
All new members joining The ABSA Small Enterprise Provident Fund will be covered for death
and family funeral benefits, but only after three months continuous membership if the cause of
death was natural. In the event of accidental death, the benefit is payable immediately. This
waiting period is designed to protect the members of the fund by managing the payment of the
benefit. Should a death claim thus arise due to natural causes within the first three months of
membership, the death and family funeral benefit will not be payable.
• Total and Permanent Disability Benefits
Should an employee become totally and permanently disabled (as determined by the insurer based on
detailed medical evidence submitted) before the age of 60, he or she will receive benefits from the
fund and the group schemes according to the rules.
• Provident Fund
From the Provident fund the member will receive a cash benefit. This cash benefit will consist
of the equitable share in the fund (net contributions plus interest) and this will be payable to the
dependants of the member as prescribed in Section 37C of the Pension Funds Act.
• Total and permanent disability in the Separate Group Scheme
All new members joining The ABSA Small Enterprise Provident Fund will be covered for
disability benefits only after a period of six months if the natural causes are not pre-existing
medical conditions. In the case of a benefit due to bodily injury caused by accidental, violent,
external and visible means this period is three months. The benefit is only due after six months
of continuous membership, and a waiting period of six months after date of disability has
expired. The member will receive a cash benefit equal to the total of the disability cover
offered by the chosen plan on approval of the claim by the insurer. If the onset of disability
occurs within 5 years prior to the member’s attainment of age 65, the amount payable will be
reduced by 20 percent of the disability benefit offered by the chosen plan, for each year or part
thereof by which the onset of such disability precedes the member’s 65th birthday. This waiting
period is designed to protect the members of the fund by managing the payment of these
benefits. Therefore, should a disability claim arise due to natural causes illness is a natural
cause within the first six months of membership, the benefit will not be payable.
5Important Notices
• Participation in an approved fund
Once you have become a participating employer in the fund, you are not permitted by law to withdraw
from the fund. You are however permitted to transfer membership to another approved fund, or in
certain circumstances have your participation in the fund liquidated. Your consultant can provide you
with more information should this be required.
• Payment of contributions
The payment of contributions to a fund is prescribed by law. The onus is on the employer to ensure
that monthly contributions are paid via the debit order system, and that funds are available for the
successful allocation of contributions. Contributions must be received by the fund on or before the 7th
of a month, and if the 7th is on a Saturday, Sunday or Public Holiday, then on the last working
weekday before such a day. Should your payment via the ACB debit order system be rejected for
whatever reason, you as employer will be liable for the payment of interest at a rate determined by the
Minister of Finance from time to time. The fund will correspond directly with you should this be
necessary.
• Risk Cover
Should a monthly contribution not be received in any one month, the risk cover will terminate if the
overdue contribution is not paid through a double debit in the following month. If the double debit is
rejected, those members will then not be covered for death, disability or family funeral benefits as from
the first day of the first month for which no contributions were received. Absa Consultants & Actuaries
will issue an ‘off-risk’ letter to the employer confirming the cessation of risk. If arrear contributions are
received subsequently, members will be subject to the waiting periods described above from the date
the contribution is re-instated. Contributions and risk benefits cannot be re-instated retrospectively.
• War and Riot Exclusions
There are war and riot exclusions and terms and conditions may vary from time to time. Please
contact your financial adviser or the fund administrator for details in this regard.
Benefits for you, the employer
• Retain your valuable employee
Employee benefits minimize the risk of losing valuable employees. You can be assured of retaining
your current staff and being able to offer an attractive, competitive package to all new employees.
• Tax
The employer's contribution to the fund is tax deductible to a maximum of 20% of the total salary roll.
As both funds are structured as provident funds the employee derives no tax benefit from
contributions in terms of the Income Tax Act.
6• Peace of mind
The responsibilities of the employer at the retirement and unforeseen death or disablement of his
employees are reduced due to provisions in a tailor-made specialist fund.
• Transferable benefits
The accumulated benefits of members are transferable to another approved fund without tax
implications.
• Ease of payment
Contributions are levied monthly in advance, and to make life easier for you, these are done by debit
order. The single contribution covers all the benefits of the fund, including those offered through the
separate group schemes.
Administration
The administration of the fund and the associated separate group schemes is executed in the Pretoria
office of Absa Consultants and Actuaries as contracted by the Trustees of the fund. ABSA Consultants
and Actuaries handle the day-to-day member administration, which includes the loading of new members,
processing of withdrawals and the payment of benefits. It happens from time to time that employers or
intermediaries contact the Fund telephonically with the request to amend member records or to withdraw
or add members. Take note that the Fund can only respond to requests in writing. This is done to protect
the members, employer and the Fund against any claims due to incorrect transactions. If you want to
communicate with the Fund by fax or e-mail, it is advisable to keep your fax records for future reference.
Should you wish to communicate with the fund, you can address your enquiries as follows:
• By e-mail to the Regional Manager at workersfunds@absa.co.za.
• By fax to the Regional Manager, ABSA Small Enterprise Provident Fund, (012) 431-3376 or
(012) 431-3597
• In writing and by post to the Regional Manager, ABSA Small Enterprise Provident Fund,
Private Bag X43, Hatfield, 0028
Please again note: that you should at all times provide your participating employer reference number (Btp
Number) and the relevant member’s numbers where applicable.
The registered address of the Fund to which correspondence should be sent, is ABSA Small Enterprise
Provident Fund, Private Bag X43, Hatfield, 0028. The rules of the fund, as well as the financial statements
of the fund, are available for inspection at the offices of ABSA Consultants and Actuaries, Hatfield
Gardens Block A, Arcadia Street, Hatfield, Pretoria.
7How to apply for membership
Applying for fund membership is very easy. All you have to do is complete and sign the application form
and return it to The Regional Manager, ABSA Small Enterprise Provident Fund, Absa Consultants &
Actuaries, Private Bag X43, Hatfield, 0028.
Once the fund has received your application, and your participation has been approved, you will receive
an administration manual as well as individual membership certificates for all yor enrolled employees.
Take action NOW
Don't delay. The ABSA Small Enterprise Provident Fund team is your partner in providing affordable and
effective retirement, death, disability and family funeral benefits for your employees. For further
information on The ABSA Small Enterprise Provident Fund or to make an appointment for advice on the
right solution for your employee benefits needs, call the fund managers today on (012) 431-3333, or
enquire via e-mail at workersfunds@absa.co.za. You may also call your local ABSA Broker, or any of the
ABSA Consultants & Actuaries offices - (011) 244-9000 (Johannesburg), (012) 431-3464 (Pretoria), (021)
914-2490 (Cape Town), (051) 401-0653 (Bloemfontein) or (031) 310-5220 (Durban).
8Table Addendum
Contributions and Benefit levels applicable from 1 December 2007:
Plan Inv B C D E F G H I J
R R R R R R R R R R
Contribution 80 80 90 126 182 243 427 606 852 1020
Escalation Compulsory on base contribution as per trustee decision annually on 1 August. Next
Increase 1 August 2008
Death Cover - 5000 10000 15000 25000 50000 75000 100000 150000 200000
Capital Disability Cover - 5000 10000 15000 25000 50000 75000 100000 150000 200000
Funeral: -
Member 7500 7500 10000 10000 10000 10000 10000 10000 10000
Spouse 7500 7500 10000 10000 10000 10000 10000 10000 10000
Child 14 - 21 3750 3750 5000 5000 5000 5000 5000 5000 5000
Children 0 - 13 2625 2625 3500 3500 3500 3500 3500 3500 3500
Note: The minimum contribution will be fixed at R100.00 per month as from 1 August 2008. Plans B and C will be consolidated
into Plan C with a minimum contribution of R100.00.
9ABSA Small Enterprise Provident Fund/ABSA Kleinsake Voorsorgfonds
Application/Aansoekvorm
Details of employer/Besonderhede van werkgewer
Name of business Contact person
Naam van Besigheid Kontakpersoon
Residential address Postal address
Fisiese adres Posadres
Code Code
Kode Kode
Tel No (code) ( ) Fax No (code) ( ) Province
Tel Nr (kode) Faks Nr. (kode) Provinsie
Banking details/Bankbesonderhede
Bank / Bank Branch / Tak
Town/ Dorp Branch code /
Takkode
Account number
Rekeningnommer
Name of account holder Type of account
Naam van rekeninghouer Tipe rekening
Date of commencement of membership Total number of employees Total monthly contribution
/ /
Datum waarop lidmaatskap 'n aanvang moet neem Totale aantak werknemers Totale maandelikse bydrae
I wish to join the ABSA Small Enterprise Provident Fund
Ek versoek om by die ABSA Small Enterprise Provident Fund
I herewith testify that, to my knowledge, the information above is correct and that I will inform the fund of any possible changes or amendments
PS: It is important for this information to be absolutely correct as claims will not be acknowledged where the claimant's information does not correspond with this information.
Ek verklaar hiermee dat die inligting hierbo na die beste van my wete korrek is en dat ek die fonds in kennis sal stel van enige moontlike veranderings of wysigings.
Let Wel: Dit is belangrik dat hierdie inligting absoluut korrek moet wees, aangesien eise nie erken sal word waar die eiser se inligting nie met hierdie inligting ooreenstem nie.
Signed on the day of year Signature of employer
Geteken op die dag van jaar Handtekening van werkgewer
Compiled and distributed by Absa Consultants & Actuaries, Private Bag X43, Hatfield, 0028. Tel No. (012) 431-3300. Fax No. (012) 431-3376/3597. E-mail: workersfunds@absa.co.za
Opgestel en versprei deur Absa Konsultante en Aktuarisse, Privaat sak X43, Hatfield, 0028. Tel Nr. (012) 431-3300. Faks Nr. (012) 431 3376/3597. E-pos : workersfunds@absa.co.za
10I, the undersigned, herewith authorise ABSA Small Enterprise
ovident Fund
Pr to debit the monthl
y contribution against my accou
nt according to the debit order system operated in co-operation
with my bank/building society, and to mydebit
account accordingly with such amounts,
as if every transaction has been undersig
ned by myself. This authorisation is valid
for all amounts due in terms of the agreement. I undertake to inform the fund of any change in my bank/building lars as set
society
out above.
particuI herewith declare that:
x All employees for whom membership has been e, applied
to the ar
best of my knowledge, in good health,
x No employees for whom membership has been applied r from suffe
any physical disability or terminal illness.
x All employees for whom membership has been applied are actively in service today.
x I am aware that costs in respect of death, disability,
, administration
funeral and commission, where applicable, arerom deducted
the monthly
f contributions.
x I herewith formally apply to be
stered
regi as a participating employer.
Hiermee magtig ek, die ondergetekende, die ABSA Kleinsake onds
Voorsorgsf
om die maandelikse bydrae teen my rekening te in ooreenstemming
debiteer met die debietorderstelsel
wat in samewerking met my bank/bouvereniging bedryf word my rekening
en om dienooreenkomstig te debiteer met sulke bedrae elke transaksie
asof deur my persoonlik
onderteken is. Hierdie magtiging is geldig vir alle bedrae
skuldig
watisver
in terme van die ooreenkoms. Ek onderneem ondsomindie
kennis
f te stel van enige
verandering in die bank/bouverenigingbesonderhede hierbo
soos
uiteengesit. Ek verklaar hiermee dat:
x Alle werknemers waarvoor vir lidmaatksap aansoek gedoen word na die beste van my wete in goeie gesondheid verkeer.
x Geen werknemers waarvoor vir lidmaatskap aansoek gedoen aan enige
wordfisiese gebrek of terminale siekte ly nie.
x Alle werknemers waarvoor vir lidmaatskap aansoek gedoen word vandag aktief in diens is.
x Ek is bewus dat die koste vir die sterfte-, ongeskiktheids-
begrafnisvoordele,
en administrasie en kommissie, waar vanng, toepassi
afgetrek word vanaf die maandelikse bydraes.
x Ek doen hiermee formeel aansoek om as deelnemende werkgewer geregistreer te word.
Signed at on this day of year
Geteken te op die dag van jaar
Signature of account holder Name of account holder
Handtekening van rekeninghouer Naam van rekeninghouer
Intermediary Details/Besond
erhede van Tussenganger
Initials Surname Region
Voorletters JE Van KRUGER Streek
PRETORIA
Broker's code Tel No (code) E-Mail address
Makelaarskode PVT 071 Tel-no (kode) 012 332-2770 E-Pos adres
jan@jefc.co.za
Signature of broker/agent FAIS Registration Number/
Handtekening van makelaar/agent FAIS Registrasienommer
12234
11Details of employees/Besonderhede van werknemers (This may also be submitted in electronic or MS Excel format)
No. of
Initials & first Date of Male/ Name & Surname of dependant Plan Monthly
Surname name birth Female ID number spouse children choice contribution
Van Voorletters & Geboorte- Manlik/ ID-nommer Naam en Van van Aantal Plan Maandelikse
voornaam datum Vroulik gade afhanklike keuse bydrae
kinders
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