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.
 

Please take note:
In order for the employer to qualify for tax relief, the employees must be in the employment of a registered business. 

• 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.

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

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

Please note: The Absa Domestic Workers 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

Inv = Investment only

Entry Age	Plan 1 (Inv) R115.00		Plan 3 (C) R115.00		Plan 4 (D) R154.00
	0%	5%	0%	5%	0%	5%
20	475,172	941,876	339,294	671,129	445,749	881,699
25	319,153	603,041	227,413	429,693	298,765	564,512
30	212,293	380,658	151,268	271,236	198,729	356,338
35	139,564	235,751	99,446	167,983	130,647	220,688
40	90,066	142,177	64,176	101,307	84,312	133,093
45	56,378	82,447	40,172	58,747	52,776	77,180
50	33,451	44,895	23,835	31,990	31,314	42,027
55	17,847	21,766	12,717	15,510	16,707	20,376
60	7,228	7,928	5,150	5,649	6,766	7,421

Entry Age	Plan 5 (E) R223.00		Plan 6 (F) R308.00		Plan 7 (G) R530.00
	0%	5%	0%	5%	0%	5%
20	669,011	1,323,314	864,364	1,709,728	1,627,932	3,220,078
25	448,406	847,259	579,343	1,094,662	1,091,126	2,061,671
30	298,267	534,8016	385,362	690,984	725,785	1,301,390
35	196,084	331,224	253,342	427,943	477,140	805,982
40	126,541	199,755	163,491	258,085	307,917	486,073
45	79,210	115,837	102,340	149,661	192,746	281,870
50	46,998	63,077	60,722	81,496	114,363	153,488
55	25,075	30,581	32,397	69,511	61,016	74,415
60	10,155	11,138	13,120	14,391	27,710	27,103

Entry Age	Plan 8 (H) R742.00		Plan 9 (I) R1,039.00		Plan 10 (J) R1,250.00
	0%	5%	0%	5%	0%	5%
20	2,377,716	4,703,162	3,499,827	6,922,718	4,205,983	8,309,507
25	1,593,671	3,011,223	2,345,769	4,432,305	2,819,073	5,326,607
30	1,060,063	1,900,777	1,560,337	2,797,807	1,875,164	3,362,318
35	696,899	1,177,196	1,025,785	1,732,748	1,232,756	2,082,363
40	449,735	709,945	661,978	1,044,989	795,544	1,255,835
45	281,520	411,692	414,377	605,982	497,985	728,250
50	167,035	224,181	245,864	329,978	295,471	396,558
55	89,119	108,688	131,177	159,982	157,644	192,261
60	36,090	39,586	53,122	58,268	63,841	70,025

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.

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