Absa Provident Fund for Domestic Workers

absa domestic workers provident fund

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This unique Provident Fund from Absa offers Home Employees (Domestic Workers): Retirement, Withdrawal, Disability and Funeral Benefits in one package

Benefits for you, the employer

• Retain your valuable employee
  Employee benefits minimize the risk of losing valuable employees. You can be assured of keeping your employees and being able to offer an attractive, competitive package to new employees.
• Tax
  The employer's contribution to the fund is tax deductible to a maximum of 20% of the total salary roll.
• Peace of mind
  The responsibilities of the employer in respect of his employees at retirement and unforeseen death or disablement are automatically reduced as this is now taken care of by a tailor-made specialist fund.
• Transferable benefits
  The accumulated benefits of members are transferable between employers, or to another approved fund.
• 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.

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Benefits for the employee

• 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.
• Resignation Benefit
  Upon termination of service 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 (nett contributions plus interest) and this benefit can be taken in cash or it can be transferred to a Preservation Provident Fund or a Retirement Annuity. Alternatively the equitable share can be transferred to another fund offered by the new employer.
• Death Benefits
  In the event of death before retirement, the member's dependents and/or beneficiaries will receive a cash benefit. The cash benefit will consist of the death and funeral cover offered by the chosen plan as well as the equitable share in the fund (nett contributions plus interest). Death cover is provided without any medical examinations until age 65. 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
  All new members joining The Absa Small Enterprise Provident Fund will be covered for death and 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 benefit will not be payable.
• Total and permanent disability
  
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 because of accidental causes, this period is three months.  This waiting period is designed to protect the members of the fund by managing the payment of the benefit. Should a disability claim arise due to natural causes within the first six months of membership, the benefit will not be payable.
Should your employee become permanently disabled before the age of 65, he/she 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 as well as the equitable share in the fund (net contributions plus interest). 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.
• Waiting period
  A waiting period of six months will apply for the payment of the disability benefit after the date of disablement.
• Important note in respect of the death and disability benefits (Risk Cover)
  Should a monthly premium not be received in any one month, Absa Consultants & Actuaries will issue a letter of warning that the risk cover will terminate if the overdue premium is not paid through a double debit in the following month. If the double debit is rejected, Absa Consultants & Actuaries will then issue an off risk letter, members will then not be covered for death, disability or family funeral benefits. If arrear premiums are subsequently received, the member will be subject to a waiting period from the date the premium is received before benefits will be paid.
• War and Riot Exclusions
  There is a war and riot exclusion and terms and conditions may vary from time to time. Please contact the fund administrator for details in this regard.
• Communication
  A member will be issued with a membership certificate once the first contribution has been made. Every member will receive an annual benefit statement, which will reflect the member’s equitable share in the fund, and 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 for distribution amongst employees. A circular including aspects of importance will also be sent to participating employers on an annual basis at the same time as the annual benefit statements.

Click here for more absa domestic workers provident fund information and how to apply

Benefit and Contribution Structure

Plan	Inv	C	D	E	F	G	H	I	J
	R	R	R	R	R	R	R	R	R
Contribution p.m.	108.00	108.00	145.00	210.00	290.00	500.00	700.00	980.00	1180.00
Death Cover	-	10 000	15 000	25 000	50 000	75 000	100 000	150 000	200 000
Capital Disability Cover	-	10 000	15 000	25 000	50 000	75 000	100 000	150 000	200 000
Funeral:	-
Member	-	7 500	10 000	10 000	10 000	10 000	10 000	10 000	10 000
Spouse	-	7 500	10 000	10 000	10 000	10 000	10 000	10 000	10 000
Child 14 - 21	-	3 750	5 000	5 000	5 000	5 000	5 000	5 000	5 000
Children 0 - 13	-	2 625	3 500	3 500	3 500	3 500	3 500	3 500	3 500
Total cost	16.16	47.96	65.81	91.58	144.23	215.23	285.15	367.90	450.40
Net Retirement savings	91.84	60.04	79.19	118.43	145.78	284.60	414.85	612.10	729.60

Inv = Investment only

Entry Age	Plan 1 (Inv) R108		Plan 3 (C) R108		Plan 4 (D) R145
	0%	5%	0%	5%	0%	5%
20	444,201	878,638	290,395	574,406	383,017	757,615
25	297,727	562,552	194,638	367,766	256,718	485.067
30	198,039	355,100	129,467	232,145	170,762	306,189
35	130,194	219,922	85,113	143,773	112,261	189,630
40	84,019	132,631	54,927	86,707	72,446	114,362
45	52,593	76,912	34,383	50,281	45,349	66,318
50	31,205	41,881	20,400	27,380	26,907	36,112
55	16,649	20,305	10,884	13,274	14,356	17,508
60	6,742	7,395	4,408	4,835	5,814	6,377

Entry Age	Plan 5 (E) R210		Plan 6 (F) R290		Plan 7 (G) R500
	0%	5%	0%	5%	0%	5%
20	572,809	1,133,029	705,092	1,394,685	1,376,521	2,722,783
25	383,927	725,426	472,590	892,954	922,617	1,743,275
30	255,377	457,911	314,353	563,660	613,698	1,100,409
35	167,888	283,595	206,660	349,088	403,453	681,509
40	108,344	171,031	133,365	210,529	260,363	411,006
45	67,820	99,180	83,482	122,084	162,979	238,339
50	40,240	54,007	49,533	66,479	96,701	129,784
55	21,469	26,184	26,427	32,231	51,593	62,923
60	8,694	9,537	10,702	11,739	20,894	22,918

Entry Age	Plan 8 (H) R700		Plan 9 (I) R980		Plan 10 (J) R1180
	0%	5%	0%	5%	0%	5%
20	2,006,500	3,968,891	2,960,536	5,855,992	3,528,847	6,980,120
25	1,344,862	2,541,103	1,984,308	3,749,328	2,365,220	4,469,057
30	894,563	1,604,022	1,319,904	2,366,691	1,573,275	2,821,006
35	588,097	993,409	867,721	1,465,748	1,034,291	1,747,116
40	379,521	599,107	559,973	883,966	667,467	1,053,654
45	237,568	347,418	350,525	512,606	471,813	611,006
50	14,0957	189,181	207,978	279,132	247,902	332,714
55	75,205	91,720	110,963	135,330	132,624	161,308
60	30,456	33,406	44,937	49,290	53,563	58,751

1. The returns are not guaranteed, but are only projections.

2. It is expected that premiums will rise by 5% per annum.

3. It is expected that the investment return will be 8%.

4. This projection is for illustrative purposes only.

5. The nett contributions were used to calculate the projections.

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