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Absa Small Business Provident Fund

Absa Small Business/Domestic Workers - Provident Fund

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Absa Small Business Provident Fund

Home Employees and Small Business Provident Fund - Absa Logo

This unique Provident Fund from Absa offers Small Business Owners (home owners and body corporate’s) and their employees Retirement, Withdrawal, Death 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.

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. (Should the member die before retirement, the benefits will be payable to his or her dependents.)
  • 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 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 Home Employees Enterprise Provident Fund will be covered for death benefits for accidental causes only for the first six months of membership. This waiting period is designed to protect the members of the fund by managing the payment of the benefit. Should a death claim arise due to natural causes or illness within the first six months of membership, the death benefit will not be payable.
  • Total and permanent disability
    Should your employee become permanently disabled before the age of 50, he/she will receive a cash benefit equal to the total of the disability cover offered by the chosen plan as well as the equitable share in the fund (net contributions plus interest). If the onset of disability occurs within 10 years prior to the member’s attainment of age 60, the amount payable will be equal to 10 percent of the disability benefit sum assured offered by the chosen plan, for each year or part thereof by which the onset of such disability precedes the worker’s 60th birthday.
  • Accidental Cover
    All new members joining The Absa Home Employees Provident Fund will be covered for disability benefits for accidental causes only for the first six months of membership. 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 or illness within the first six months of membership, the benefit will not be payable.
  • 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.
  • Benefit and Contribution Structure

    Please note: The Absa Small Business Provident Fund fees/contributions will change from 1 July 2016, starting from a minimum contribution of R214.00 p.m.
    Plan
    S1
    S2
    S3
    S4
    S5
    S6
    S7
    S8
    S9
    Contribution p.m.
    R214.00
    R214.00
    R291.00
    R423.00
    R583.00
    R1004.00
    R1405.00
    R1967.00
    R2359.00
    Death Cover
    -
    R15 000
    R20 000
    R30 000
    R55 000
    R80 000
    R110 000
    R160 000
    R220 000
    Capital Disability Cover
    -
    R15 000
    R20 000
    R30 000
    R55 000
    R80 000
    R110 000
    R160 000
    R220 000
    Funeral:
    -
    Member
    -
    R10 000
    R12 500
    R15 000
    R15 000
    R15 000
    R15 000
    R15 000
    R15 000
    Spouse
    -
    R10 000
    R12 500
    R15 000
    R15 000
    R15 000
    R15 000
    R15 000
    R15 000
    Child 14 - 21
    -
    R5 000
    R6 250
    R7 500
    R7 500
    R7 500
    R7 500
    R7 500
    R7 500
    Children 0 - 13
    -
    R3 500
    R4 375
    R5 250
    R5 250
    R5 250
    R5 250
    R5 250
    R5 250
    Total cost
    R23.44
    R55.64
    R69.38
    R91.45
    R126.57
    R152.57
    R183.77
    R235.77
    R298.17
    Net Retirement savings
    R190.56
    R158.36
    R221.62
    R331.55
    R456.43
    R851.43
    R1221.23
    R1731.23
    R2060.83

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Absa Small Business Provident Fund