Absa contribution changes from 1 August 2010:
 Absa Small Business / Absa Domestic Provident fund
This unique Provident Fund from Absa offers Small Business Owners (home owners and body corporate's) and their employees Retirement, Withdrawal, Disability and Funeral Benefits in one package.
The Absa Small Business/Domestic Provident Fund fees will change from 1 August 2010, starting from a minimum contribution of R115.00 p.m
| Plan |
Inv |
C |
D |
E |
F |
G |
H |
I |
J |
| Contribution p.m. |
R115.00 |
R115.00 |
R154.00 |
R223.00 |
R308.00 |
R530.00 |
R742.00 |
R1,039.00 |
R1,250.00 |
| Death Cover |
- |
R10 000 |
R15 000 |
R25 000 |
R50 000 |
R75 000 |
R100 000 |
R150 000 |
R200 000 |
| Capital Disability Cover |
- |
R10 000 |
R15 000 |
R25 000 |
R50 000 |
R75 000 |
R100 000 |
R150 000 |
R200 000 |
| Funeral: |
- |
|
|
|
|
|
|
|
|
| Member |
- |
R7 500 |
R10 000 |
R10 000 |
R10 000 |
R10 000 |
R10 000 |
R10 000 |
R10 000 |
| Spouse |
- |
R7 500 |
R10 000 |
R10 000 |
R10 000 |
R10 000 |
R10 000 |
R10 000 |
R10 000 |
| Child 14 - 21 |
- |
R3 750 |
R5 000 |
R5 000 |
R5 000 |
R5 000 |
R5 000 |
R5 000 |
R5 000 |
| Children 0 - 13 |
- |
R2 625 |
R3 500 |
R3 500 |
R3 500 |
R3 500 |
R3 500 |
R3 500 |
R3 500 |
| Total cost |
R16.56 |
R44.86 |
R61.85 |
R84.68 |
R129.29 |
R193.43 |
R250.40 |
R315.40 |
R380.40 |
| Net Retirement savings |
R98.45 |
R70.15 |
R92.16 |
R138.32 |
R178.71 |
R336.58 |
R491.60 |
R723.60 |
R869.60 |
Taxation of contributions and benefits payable
The above plans make provision for approved benefits (Provident Fund) and unapproved benefits - death, disability and funeral
(separate group schemes). Therefore only contributions made to the Provident Fund are tax deductible for the employer. The
benefits payable from the separate group schemes are tax free.
In order for the employer to qualify for tax relief, the employees must be in the employment of a registered business.
Death of a member before retirement
(Provident Fund and separate group schemes) In the event of death before retirement, the member's dependents and/or beneficiaries will receive a cash benefit equal to his or her fund value in the Provident Fund. From the separate group schemes, the member's dependents and/or beneficiaries will receive the death and funeral benefit equal to the chosen plan.
Withdrawal of a member (Provident Fund)
Upon termination of service with an employer, the member's death, disability and funeral benefits will cease. The member's
fund value in the Provident Fund can be transferred to any approved fund. Alternatively, the member may apply to withdraw
his or her benefit in cash.
Retirement of a member (Provident Fund)
At retirement the member's death, disability and funeral benefits will cease. The member will receive his or her fund value in the Provident Fund as a cash benefit. Subject to the employer's consent, the member may retire at any age between 55 and 70.
Death of a spouse or a child (Separate group scheme)
In the event of death of the member's spouse or child, a funeral benefit equal to the chosen plan will be payable from the
separate group scheme.
Total and permanent disability of a member
(Provident Fund and separate group scheme)
Should the member become disabled before the age of 65, a cash benefit equal to his or her fund value in the Provident Fund
will be payable. Should the disability claim be approved by the insurer, the member will receive the disability benefit equal to
the chosen plan from the separate group scheme after the 6 month waiting period. Should the disability occur within 5 years
prior to the attainment of age 65, the benefit payable from the separate group scheme will be reduced by 20% for each year or
part thereof.
For more information and how to apply please follow this link Absa Small Business/Absa Domestic Provident Fund
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