Absa Landbousektorale Voorsorgfonds

Agricultural Sector Provident Fund

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A UNIQUE PROVIDENT FUND FOR THE AGRICULTURAL SECTOR ADMINISTERED BY ABSA CONSULTANTS AND ACTUARIES

The unique provident fund offering retirement, resignation, death and funeral benefits to employees of the agricultural sector in a single package.

Absa Consultants and Actuaries, in co-operation with the formal agricultural sector, offers participating employers a Provident Fund in order to provide their employees with retirement and risk benefits. The Agricultural Sector Provident Fund provides retirement, withdrawal, death and funeral benefits. The administration, advice and actuarial services for this fund are handled by Absa Consultants and Actuaries. The management of the fund is handled by a Board of Trustees, with representatives from Absa, AGRI SA, LWO, TLU, as well as independent trustees.

Benefits for the Employer and his Employees

• One single contribution covers the total benefit package.
• The employer’s responsibilities towards his employees are alleviated considerably.
• Employees are offered peace of mind.
• Employees’ accumulated benefits are transferable from one employer to the next.

Death benefit

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
schemes, the member’s dependents and/ or beneficiaries will receive the death and funeral
benefit equal to the chosen plan (subject to tax).

Retirement benefits

At retirement the member's death 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 (subject to tax).

Should no claim forms be received, the money will be transferred to the unclaimed account.

Resignation benefit

Upon termination of service with an employer, the member’s death and funeral benefits will
cease. The member’s fund value in the Provident Fund can be transferred to any approved
fund. Alternatively, the employee may apply to withdraw his or her benefit in cash (subject
to tax).

Should no claim forms be received, the money will be transferred to the unclaimed account.

other benefits

• Membership
  Each employee decides which plan he or she wants to join.
• Tax
  The net contributions by the employer to the fund (total contribution less the premium cost of
  the group benefit scheme) are deductible for tax purposes as determined by the Tax Act.
• Administration
  Currently the fund is administered by Absa Consultants and Actuaries and audited annually
  by independent auditors.
• Investments
  The portion of the contributions available for retirement funding (savings component) is
  invested in relevant portfolios of well-known investment managers in order to ensure that
  members’ savings component is exposed to growth with limited risks.
• Ownership
  Although employers are registered as participating employers of the fund with their own
  plans, a separate investment account is kept for every employee (who is a member of the
  fund). Thus, every employee has ownership of his/her own investment account.
• Benefit structure
In order to make provision for different needs, different benefit plans are offered. This can be
extended at a later stage, dependent on the need and the effect of inflation.

Click here for more information: Absa Agricultural Sector Provident Fund

New plans on the Agricultural Sector Provident Fund from
1 March 2010 to 28 February 2011

	Provident Fund Death cover plus Funeral cover with Retirement benefits
Package	Plan A	Plan B	Plan C	Plan D	Plan E	Plan F	Plan G	Plan H	Plan I
Contribution	R82.00	R84.00	R100.00	R114.00	R130.00	R144.00	R226.00	R260.00	R486.00
Death cover plus Funeral cover:Member	-	R7 500	R10 000	R12 500	R15 000	R17 500	R25 000	R32 500	R65 000
Funeral cover: Spouse	-	R5 000	R5 000	R7 500	R10 000	R10 000	R10 000	R12 500	R15 000
Funeral cover: Child 14-21 years	-	R5 000	R5 000	R7 500	R10 000	R10 000	R10 000	R12 500	R15 000
Funeral cover: Child 6-13 years	-	R2 500	R2 500	R3 750	R5 000	R5 000	R5 000	R6 250	R7 500
Funeral cover: Child 0-5 years	-	R1 250	R1 250	R1 875	R2 500	R2 500	R2 500	R3 125	R3 750
Total costs	R12.40	R39.00	R44.87	R52.62	R60.37	R66.25	R83.87	R103.37	R181.62
Net retirement provision	R69.60	R45.00	R55.13	R61.38	R69.63	R77.75	R142.13	R156.63	R304.38

Plan A: Investment only

Notes:

The above-mentioned plans are offered on a group basis and subsequently the following points are important:

1. The members of a participating employer may individually elect whether they want to belong to Plan A to I within the Provident Fund
2. Members who elect to belong to Plan H or I have to earn a minimum salary of R30 000 per annum.
3. Above-mentioned Provident Fund represents a compulsory scheme, which means that all employees of the participating employer have to participate. Initially some members may choose not to be part of the scheme, but thereafter ALL newly appointed employees have to belong to the scheme.

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Click here for more information: Absa Agricultural Sector Provident Fund

 

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